Buying your first home is one of the most exciting and rewarding milestones in life. It’s also perhaps the biggest financial decision you’ll make (certainly for a long time), and navigating the process on the path to achieving the milestone can sometimes be overwhelming. 

If you’re planning to take the leap in 2025, don’t worry—we’ve got you covered. Follow these five practical steps to prepare, plan, and position yourself for success when it come to getting your foot on the property ladder.

Step 1: Review Your Finances

Before you start scrolling through property listings, take a close look at your financial situation. Getting clear on your finances will determine your budget or how much you can comfortably borrow, and repayments within a lifestyle that won’t place you under stress. Here’s how to get started:

Assess your income, expenses, and savings: Understand where your money is going and identify unnecessary expenses, like subscriptions, that could be cut to increase your savings.

Create a budget: Map out a monthly spending plan to ensure you can handle future mortgage repayments without financial strain.

Pay down debts: Prioritise clearing high-interest debts, such as credit cards and personal loans, as these can affect your borrowing capacity. 

Step 2: Prioritise Your Lifestyle Choices 

Buying a home isn’t just about finances—it’s also a lifestyle decision. Ask yourself these critical questions to help shape your search:

Do you prefer the city buzz or a quieter countryside retreat? 
How important is the length of your commute to work? 
Are you prioritising access to schools, green spaces, or public transport? 
What amenities are must-haves for your everyday life?

Your home’s location and features should align with your lifestyle and long-term goals. By clarifying your priorities, and where you are willing to compromise, you can focus your search on properties that meet your needs, saving time and avoiding frustration.

Step 3: Build Your Deposit 

Saving for a deposit is often the biggest hurdle for first-time homebuyers—but it’s achievable with a disciplined approach. Here’s how to make progress:

Aim for a minimum 20% deposit: While many lenders accept smaller deposits, aiming for 20% avoids Lenders Mortgage Insurance (LMI) and reduces your overall loan.

Automate your savings: Open a dedicated savings account and set up automatic transfers to build your deposit consistently. Watching your balance grow can be a great motivator!

Leverage government schemes: Check if you qualify for assistance programs like the First Home Guarantee or Super Saver Scheme, which can give your savings a welcome boost.

Don’t forget to plan for additional costs, such as stamp duty, legal fees, and inspections, when calculating your savings target.

Step 4: Check Your Credit Score and Secure Pre-Approval 

Your credit score plays a crucial role in determining your eligibility for a home loan. Here’s how to strengthen it and what steps to take next:

Check your score early and address any room for improvement (e.g., paying bills on time and reducing outstanding debts). 
Once your finances are in order, secure mortgage pre-approval from your lender. 

Why is pre-approval important? 

A clear budget ensures you know what you can afford, helping to avoid wasted time and disappointment.

Fast decision-making means you’ll be ready to submit an offer as soon as you find the perfect property.

Sellers perceive pre-approved buyers as serious and reliable, which could make your offer more appealing.

Step 5: Research the Market and Seek Expert Advice 

Understanding the property market is key to making informed decisions. Here’s how to get the lay of the land:

Know property prices in your preferred areas to align expectations with your budget. 

Monitor interest rates and trends that influence market activity. 

When you’re well-informed about the market, you’ll feel more confident choosing a location and property that fits both your financial and lifestyle goals.

Navigating the property-buying process can be much smoother when you have a team of trusted professionals to support you. 

Harcourts Rata & Co offer local expertise to help you find your ideal home and negotiate the best deals. 

With the right experts by your side, you’ll avoid common pitfalls, gain confidence, and make well-informed decisions at every step.

Buying your first home in 2025 doesn’t have to feel intimidating. With thoughtful preparation, thorough research, and expert support, you can turn what feels like a daunting process into an empowering and rewarding experience.