Do I have to be an Australian citizen to buy a house?

Yes – in most cases, you’ll either have to be an Australian citizen or have a permanent resident visa to be accepted for a home loan by most lenders. However, some online lenders will approve home loans to people holding spousal/partner visas and interdependency visas, depending on your personal situation. Temporary residents or foreign residents wishing to purchase real estate in Australia will need to apply to the Foreign Investment Review Board for permission to purchase.

If I fit the application criteria for the First Home Owner Grant (FHOG), will I automatically be approved?

Not necessarily – the FHOG scheme is an Australian Federal Government scheme but it is administered by the states. The approval rules for each state change from time to time, and some states place a cap on the number of FHOG approved each year, so you should check on your state government website to ensure that applications for FHOG are open when you intend to apply for a grant.

How long does it take to get a home loan approval?

Home loan approval usually takes between seven and 14 days, but you should allow up to a month for full approval on your loan to be granted. During this period, it is not unusual for lenders to contact borrowers asking for clarification or more paperwork, so don’t be concerned if you do get phone calls from your lender whilst your claim is being assessed.

Are conveyancers the same as solicitors, and how much do they charge?

Conveyancers can be solicitors (lawyers), or they can hold specialist conveyancing qualifications and be registered as a conveyancer. They’re legal professionals who specialise in property transfers. The cost for a conveyancer’s services varies from state to state, but is generally between $600 and $1,200, depending on the complexity of the property transfer.

What is the usual settlement period when buying a house?

The most common property settlement period is between 30 days and 60 days, although settlement can occur later than this by agreement between the buyer and the seller. The actual settlement date is decided between the two parties when the final sale contract for the property is signed. This settlement date can be varied by mutual agreement, but if a default occurs, financial penalties are imposed for each day the settlement is delayed.

If I get loan pre-approval, will I automatically get my loan approved?

No – loan pre-approval is not the same thing as full loan approval and doesn’t serve as a guarantee that your loan will be approved. It’s just an estimate of the sum a lender may approve given the details provided to the lender at the time.

What other costs are there when buying a house?

In addition to legal and conveyancing fees, stamp duty, and the loan establishment charges your lender will ask for to set up your mortgage, you’ll also have to budget for the cost of your furniture removalists (which can be anywhere from $1,000 to over $5,000 depending on how much furniture and personal effects you own, and also the distance that you are moving). Don’t forget utility supply charges, internet connection fees and possibly the cost of hiring cleaners to thoroughly clean your former home after you move out.

When settlement is complete, can I move in straight away?

Once property settlement takes place, you’ll receive a phone call from your real estate agent or conveyancer to let you know the property is now officially yours. They will arrange delivery or collection of the keys to your property and, from that moment on, you’re free to move into your new home.

When I sign a contract to buy a home, do I have to insure it?

Yes – you should arrange home building insurance from the day you sign the formal sales contract to purchase your new home. The vendor of the property should still have it insured up until settlement day, but just to be safe you should also insure your new purchase from the day you agree to buy it.