How to buy a house

While some government incentives can be used at the same time, make sure you check for exclusions as incentives can vary based on which state or territory your property’s in. 
 

• The First Home Super Saver Scheme (FHSS) allows eligible first home buyers to withdraw some of their voluntary super contributions, and put them towards their home deposit.  
  
• The First Home Owner Grant (FHOG) is a one-off amount paid to first homeowners. Check with your local government:  ACT, NSW, NT, Qld, SA, Tas, Vic, WA
• First home buyers can also access stamp duty exemptions, concessions or reductions. Check with your local government: ACT, NSW, NT, Qld, SA, Tas, Vic, WA 
• With the Australian Government initiated Home Guarantee Scheme, you could fast-track your home ownership dreams with one of three guarantee options - First Home Guarantee, Regional First Home Buyer Guarantee or Family Home Guarantee.  If eligible, you could buy your own home with a low deposit of 2-5% and no Lenders Mortgage Insurance (LMI) on your Westpac home loan. Find out more about the Home Guarantee Scheme.

So you have your deposit and a rough price range. Now it’s time to work out the upfront costs you’ll need to budget for.
 

• Stamp duty. At Westpac, stamp duty is an upfront cost and can’t be included as part of your Westpac home loan. Our cost calculator estimates this for you. 
• Lenders Mortgage Insurance (LMI). We may still be able to lend to you, even if you don’t quite have a deposit that’s 20% of the property’s value, and you could include this cost as part of your loan – our cost calculator estimates LMI for you.
• Government fees. These include things like Transfer Duty, the Mortgage Registration Fee and a Land Transfer fee, if applicable. The cost can vary between states and territories, and our cost calculator estimates these for you. 
• Solicitor/conveyancer. Can include an initial review of a Contract for Sale, and the full process to settlement if you go ahead – our cost calculator estimates this for you.
• Building and pest inspections. A good idea to check the property before you buy – our cost calculator estimates this for you.
• Bank fees/loan set-up costs. Can include an establishment, valuation and settlement fee. Your lender can help you with this.
• Building, home & contents insurance. Home & contents insurance provides cover against loss or damage caused by flood, fire, storm, theft and more. You may need Building (Home) insurance as part of your home loan agreement.
• Other costs. Like removalists and the cost of breaking a rental lease early (or selling your current property if you're buying your next home).

There’ll be ongoing property costs too, like insurance and council rates/strata fees. You should factor these in when calculating your mortgage repayments. 

Your income and expenses are two of the main considerations for any lender, so having a strong savings history with minimal credit card debt or other loans can help. Ask yourself the deep questions, like “how much will I be happy to repay every month?” and “will I be able to afford these repayments if interest rates rise?” (they reached 7.25%p.a. back in 2008). Here are some helpful tools:

• Affordability calculator – based on what you’d feel happy repaying
• Maximum loan calculator – the most we may be able to lend you based on your expenses, income, debts and assets
• Repayment calculator – as a general rule of thumb, your monthly repayments shouldn’t be more than 1/3 of your gross monthly income. 

Doing plenty of groundwork can help you become a more confident buyer. Here are some things worth considering:
 

• Work out what’s important to you, like in-area schools, nature, public transport and shopping centres
• Think about taking a short stay in the area 
• If it's within 20km of an airport, check maps of the flight paths
• Dig deeper to uncover any current or proposed infrastructure or construction projects, power substations or electrical towers that may affect the property’s value
• If the area’s prone to bushfires, storms and floods you're likely to pay significantly higher insurance premiums – check with a home insurance provider
• Get a feel for the market by watching our property market update. 

Know that property inside out

Search an address or suburb for our full online Property Report, complete with sale history, price guide^* and neighbourhood vibe, as well as capital growth and expected rent income.

Your home loan’s going to be with you for a while, so go with a lender that has exceptional value-for-money and an outstanding track record for before and after service.

Here’s how we help:
 

• Track your online application. Follow your progress and get notifications – it should only take around 20 minutes to apply.
• One point of contact. When you submit your online application, you’ll be assigned a home finance manager who’ll call to answer your questions, move things forward and run a credit check. 
• Getting ahead. We genuinely want you to own your property sooner. That’s why our fixed loans give you a $30k prepayment limit², and our variable loans come with unlimited extra repayments. Our Rocket Repay loan also comes with a full offset account to help you save on daily interest.
• Financial breathing space. If you’re ahead on your repayments, you’re free to redraw³ the extra amount you’ve paid anytime with no redraw fee. You can also apply for Parental Leave, or to pause or reduce your variable loan’s Principal & Interest repayments for a while⁴. 
• You’re in control. Our customer hub lets you know how to use the Westpac App and Online Banking to check your rate, change repayments, redraw, download statements and more.
• More than a great rate. We’re here for our customers during life’s tough times, including job loss support and disaster relief (depending on your individual circumstances, and subject to change). 
• Proud pioneers. As Australia’s first bank, our values are centred around helping. We had the country’s first female bank teller, the first female CEO of a major company, and we were the first to introduce paid maternity leave. In the early 2000s we became a founding Platinum member of the Australian Network on Disability. In 2018 we achieved the highest Platinum status for LGBQTI inclusion in the Australian Workplace Equality Index awards. As for the future, we’ve made a commitment to reduce our thermal coal lending exposure to zero by 2030 (PDF 732KB). 
• Our promise to you. Westpac's vision is to be one of the world's great service companies. Our service promise includes a dedicated Customer Advocacy team to ensure you’re listened to in a fair way, and that help is at the heart of everything we do. 

We have three main types of home loan, each available for investors too. Our Rocket Repay Home Loan (standard variable rate) gives you handy features like a 100% offset account and redraw. Our Fixed Options Home Loan gives you certainty over your repayments, lets you lock in our best fixed rate for 1-5 years, and has a generous limit on extra repayments, as well as redraw. Our Flexi First Option Home Loan is our basic loan with our lowest variable rate, unlimited extra repayments so you can get ahead, and redraw. 

Both Rocket Repay and Fixed Options can be packaged^# for an interest rate discount, fee waivers and savings on a range of products. You can also split your loan balance into separate fixed rate and variable rate accounts.

“I’m building a new home”

Planning major renovations or building a brand new home? Available for no extra fee on most of our home loans, our construction option lets you draw funds at each construction stage – so you only pay interest on what's drawn. 

“I’m just buying land”

Buying land without a building contract? You can apply for a regular Westpac home loan, without the construction option.  

“I’m self-employed”

You can apply for any of our home loans online, we’ll just need to see a bit more documentation. 

“I already own property”

Hunting for your next home? You may be able to apply for a top up or a new home loan using the equity in your current home as security. Or our Bridging Loan can help fill the finance gap between buying and selling (conditions apply).  
 

Confused with the home loan terminology? Learn the lingo

You have four ways to apply with Westpac.

1) Apply online and track your application

You can save, submit and track your home loan application online for conditional and full approval (or a refinance), all the way to settlement. We’ll show you what you could afford to spend on a property and the estimated costs involved (stamp duty can’t be included in your Westpac home loan). It should only take around 20 minutes to apply. Then your assigned home finance manager will be in touch to answer all your questions, and progress things to the next stage. 

Online applications are available for all loans (unless you’re building a new home, applying for our Bridging Loan or increasing your current Westpac home loan, in which case please request a call back). 
 

2) Have a lender call you back  

Request a call back if you’d prefer one of our home lending managers to complete your application. Or if you’re planning to build a new home, you’re after our Bridging Loan or increasing your current Westpac home loan.
 

3) Apply through your broker 

If you’re going with a Westpac-affiliated broker, they’ll guide you through your application and answer any of your questions.  

4) Apply in-branch  

Call your nearest branch to arrange a meeting. Locate a branch

As a first-time home buyer, you’ll need to show us proof that you’ve been consistently saving for a deposit or making timely rent repayments, e.g. savings account statements or evidence of a continuous 6-month rental payment history. 
 

To improve your credit score, it may also be worth paying off any large credit card debts or personal loans before you apply.
 

There can be up to two borrowers on a Westpac home loan, and if you’re applying online, having the other borrower join the application can speed up the process. 

A Westpac conditional approval (also known as pre-approval, indicative approval or approval-in-principle) means you're approved for a loan of a certain amount – as long as your situation doesn't change and the property meets our lending eligibility criteria. It’s the first step in getting your home loan approved, and:
 

• Confirms the deposit you’ll need and the most you could borrow
• Gives you the confidence to bid at auction or make an offer 
• Means you’ll be treated as a serious buyer by agents
• Let’s you make changes to the loan before full approval
• Includes a credit report check (after you’ve spoken with a home finance manager) 
• Is valid for 90 days, but if you need more time and you can confirm your finances haven’t changed, we can renew it.
   

Before signing contracts, remember to run the address past your Westpac home finance manager, as there are some properties we might not lend against (like very small units, certain suburbs or apartment blocks, tiny houses, hobby farms and places near large power lines).
 

• Take plenty of photos/videos to jog your memory later
• Take photos of any problems you notice, like sagging ceilings, wall cracks, water stains, wonky roof lines, an old kitchen, corrosion, mould and sloping land
• Tick off your checklist as you go
• Ask the agent why the vendor’s selling and if there are any known issues with the property
• Bring a measuring tape to make sure your furniture will fit
• If you're keen on a closer look, ask for a private second viewing
• Tip: it’s not always the highest price that wins, sometimes it’s being the quickest. Be prepared to make a same-day offer or pre-auction offer, subject to finance and a later building and/or pest inspection.

First, a quick summary of the sale process. 
 

• Private treaty. If your offer’s accepted in a private sale, a vendor’s deposit (normally 10%) must be paid when you exchange signed contracts with the vendor. You may get a ‘cooling off period’ depending on your state, territory or contract. From here, the sale of the property is legally-binding, but you won’t technically be the owner until settlement.
• Auction. If you make a winning bid at auction, you’ll sign and exchange the contract and pay your deposit right there on-the-spot. From here, the sale of the property is legally-binding, but you won’t technically be the owner until settlement.
• Off the plan. If you sign a contract and pay a deposit on a property that’s yet to be built, the balance is payable at settlement – usually when construction’s completed – which can be several years later. 

Checklist

Before auction day

Remember, as long as the reserve price is met, the winning bidder has no option but to buy the property. So attend a few auctions to get used to the vibe and psychological tactics of the auctioneer, real estate agent and bidders. 

Talk to the real estate agent to register as a bidder, and to find out how the vendor’s deposit (normally 10% of the sale price) should be paid. If you want, you can make a pre-auction offer, or authorise someone else to bid and sign on your behalf. 

Set an amount no higher than the property’s fair market value, as ‘over-bidding’ could affect your loan-to-value ratio. We may only carry out our bank valuation after the auction, so talk with your home finance manager about its most accurate estimated value. And remember, a winning bid at auction is a binding contract, so ensure you’re pre-armed with a conditionally approved home loan and, ideally, a building and pest inspection report.

On auction day

If you haven’t already, register as a bidder as you arrive. Remember your limit and the property’s fair market value. If you make the winning bid – congratulations! You’ll immediately enter into a binding contract, with no cooling off period. Simply sign the contract and pay the vendor’s 10% deposit there and then.

You can put in an offer on a property through a private sale (treaty), and before an auction. If it’s a private sale, you can get your building/pest inspections done either before exchanging contracts, or during any cooling off period. 

Sale price negotiations are generally made through the vendor’s real estate agent. And depending on the vendor’s situation – and mood – the process can take anything from a few minutes to many weeks. Once both parties agree on a price, you’ll need to sign the contract of sale and pay your deposit. 

Tips 

• Multiple inspection reports are costly, consider getting yours during any cooling off period. 
• You could make a conditional offer based on a satisfactory report and finance.
• If you already have an inspection report, you can use it to negotiate the price down or ask the vendor to make repairs before settlement. 
• If other buyers are interested, getting your signed contract to your legal agent, then back to the vendor fast, might just pip your competition at the post.
• Some buyers pay a ‘holding deposit’ along with their offer to show they’re a serious buyer. It's fully refundable until contracts are signed. It’s also optional, and if a cheeky estate agent says otherwise, ask them to put it in writing.

At auction. If you place a winning bid at auction, you’ll need to sign the contract and pay your deposit on-the-spot, with no cooling-off period. 

In a private treaty. If it was a private sale and you’ve entered a cooling-off period, you’ll have several days to change your mind, but you’ll forfeit some of your deposit (see ‘Before signing a contract’). If you decide to go ahead, you need to pay the rest of the deposit at the end of your cooling off period to secure the sale.  

From here the property sale is legally-binding, though you won’t technically own it until settlement.

We’ll organise to value the property online based on comparable sales and market trends in surrounding areas and, if needed, arrange an on-site bank valuation.
 

If it comes in lower than expected, we'll let you know if there’s any shortfall you’ll need to cover. For example, if your loan-to-value ratio is more than 80%, you could still get full approval if you take out Lenders Mortgage Insurance.

If you want to change your loan repayment structure and features, let your home finance manager know. In the meantime, they’ll do some final checks and confirm everything's all good. 

If you have full approval, they’ll draw up your loan documents and you’ll see a notification in your online application. Retrieve your application

Your home finance manager will be in touch to walk you through all the documents you need to sign, including the mortgage documents used to secure your loan. 
 

• Remember to go through the fine print, particularly with your conveyancer/solicitor. 
• Once you sign and accept your loan documents, we’ll begin preparing your loan for settlement. As soon as you get your docs, read them, sign and accept them at least two weeks before your settlement is due.

The amount and your eligibility will vary depending on which state or territory your property’s in (see ‘Getting your deposit together’). 
 

• First Home Owner Grant: your broker or Westpac will organise and lodge yours with your state’s revenue office on your behalf. 
• Stamp duty concessions: your conveyancer/solicitor will normally organise and lodge this on your behalf.

What a milestone, the day you become the owner of your new property! 

Payment & paperwork 

The legal and financial representatives of both you and the seller meet to finalise the payment. It’s organised at a time and place agreed upon by both parties, and will generally be managed by your conveyancer/solicitor and Westpac home finance manager. They’ll settle the balance owing on the property using the home loan you’ve taken out, and the property ownership will be transferred from the seller to you.

• Don’t worry, you don’t need to be at the meeting. 
• Stamp duty’s paid at this stage, your conveyancer/solicitor can do this on your behalf.
• Make sure the money needed to complete the purchase (like the balance, conveyancer/solicitor and government fees) are in your nominated account. 
• Once both parties have signed all the documents, they’re sent to the titles office to register you as the new owner of the property. 

Get those keys 

Once you’ve settled you can pick up the keys from the real estate office, and your next adventure begins. Congratulations!

Moving in checklist

Leasing checklist for rentvestors

NOTE: You’ll only qualify for the First Home Owner Grant if you live in the property yourself at least 1 year before renting it.
 

Welcome to the next exciting chapter of your life. Your first home loan repayment is normally due within the first month of settlement. Check you’ve got the right amount in the right account, and your direct debit (or scheduled payment) is set up and ready to go. 

You’ll find your repayment due date in your home loan contract, as well as in the Westpac App and Online Banking – which are by far the easiest ways to manage your loan, check repayments and redraw etc. 

Managing your home loan

A home loan that evolves with you

Your Westpac home loan has been designed to match your changing lifestyle, so you can become mortgage-free sooner. Whether you’re in the fortunate position of being able to make extra repayments, you’d like to redraw some funds, or reduce or pause your repayments for a while, we’re here to help.