Getting ready to buy

Most of the expensive mistakes in a property purchase are made before anyone has found a property. Not through carelessness, but because this groundwork is quiet work: what you can actually borrow, what the purchase will cost in total, who is going to read your contract, and how quickly you can move when the right place appears.

This stage is about settling those questions while there is no deadline pressure.

Key takeaways

• Your borrowing capacity is not your budget. What a lender may advance and what you can comfortably commit to are different numbers, and the gap is where buyers get caught.
• Line up a conveyancer before you need one. The most useful moment for a contract review is before you sign, and on some purchases it is the only moment.
• Being ready is what lets you move quickly on the right property without skipping the checks that matter.

What does being finance-ready actually mean?

It means knowing what a lender is likely to advance, and separately knowing what you are willing to commit to. Pre-approval gives you an indication of the first, subject to its conditions. It does not tell you the second.

Your real ceiling takes in your deposit, the costs of buying, your repayments and the headroom you want to keep. A lender may be prepared to lend an amount that is not the right number for your circumstances.

What will the purchase cost beyond the price?

Transfer duty is usually the largest single addition, and it varies by state, by property value and by whether concessions apply to you. Beyond it sit conveyancing fees and disbursements, inspections, searches, lender costs and the adjustments settled on the day.

Working these out early changes which properties are genuinely within reach, rather than discovering it after an offer.

Why engage a conveyancer before you find a property?

Because the contract arrives with a deadline attached. Choosing someone while you have time means the review happens properly rather than overnight, and it means you have somebody to call when an agent asks you to sign.

Whether you have any opportunity to withdraw after signing depends on the state, the contract and how the sale is structured, so it is worth knowing your position before you are in it rather than after.

Where to start

The guides below cover the shape of the process, what conveyancing involves and what it costs, how borrowing capacity relates to purchase price, how transfer duty is worked out, and the documents a lender will want for pre-approval.