How Long Does It Take to Buy a House?

1. Research properties

Before you get started you’ll want to do as much research as possible about the sort of property you want, where you want to live and how much it’s going to cost. Focus on areas that meet your lifestyle and financial needs. For example, consider proximity to relevant amenities, like shops, theatres, bars, and schools. 

If you’re already living in the area you want to buy in, your research will be easier — though many first home buyers are priced out of the suburbs where they rent. Once you’ve chosen your location, start going to open home inspections and auctions to understand property prices and demand. Check out online platforms — like domain.com.au and realestate.com.au — to compare properties and track recent sales in your target area. 

How long should I spend on research? 

There is no fixed timeframe for researching properties and locations. Since this is one of the most important financial decisions you’ll make, take your time. You’ll really want to be confident that the property suits both your lifestyle and long-term financial goals. Remember, you’ll likely be paying off your mortgage for 20 years or more. Dedicate several weeks, if not months, to thorough research before you apply for a mortgage and start the buying process. 

2. Get your finances ready

Being prepared financially to take on a mortgage means understanding both your eligibility and your ability to comfortably afford the repayments. First, review your income, savings, and any existing debts. 

You should also check your credit score, because lenders will want to know your credit history before approving a mortgage. If your score is low, you may need to spend several months focused on getting your score where it needs to be before applying, which could delay this step. This extra time can also be spent building better money management skills and habits.

Once you’ve reviewed your finances, use a mortgage calculator to estimate how much you can borrow. Don’t forget to factor extra mortgage and other costs, such as stamp duty, legal fees and inspection fees, when setting your budget. Compare multiple mortgage products to find the best terms for your situation. 

You might also consider engaging a mortgage broker, especially if you’re self-employed or need a less conventional home loan. Mortgage brokers should understand their local market, have a wide array of products at their disposal, and can tailor a solution to your needs. Plus, their services are free because lenders pay their fees.

How long does it take to get your finances together?

When it comes to financial preparation, timelines will depend on your own circumstances. Being organised can significantly speed up the process.

» MORE: Costs to know when buying a house 

3. Arrange for your deposit

Generally speaking, you’ll need a deposit to buy a property in Australia. This is typically 20% of the property’s value, with a minimum requirement of 5%. Most lenders prefer to see ‘genuine savings’ — evidence you saved the money yourself — as it demonstrates financial responsibility and your ability to repay a mortgage. 

If your deposit is less than 20%, you’ll need to pay lenders mortgage insurance (LMI) —  basically, a large slab of money down the drain — which is an added cost to your loan. 

How long does it take to save for a deposit?

Saving for a deposit can be the most time-consuming stage of the process and, in Australia, the timeline is increasing. 

According to a September 2023 report by realestate.com.au, it takes an average of five-and-a-half years to save for a deposit. This calculation assumes households save 20% of their gross income to accumulate a 20% deposit on a median-priced home.

With rising house prices, fewer Australians can save enough to buy a home without financial assistance or compromises. As of March 4, 2024, the average house price in Australia is $973,300, according to the Australian Bureau of Statistics. To avoid paying LMI, you’d need to save at least $194,660 for a deposit on a median-priced home — and even more in higher-priced areas. 

If these figures seem daunting, consider alternative options, such as:

• loans with lower deposit requirements, 
• asking a trusted family member to go guarantor to vouch for your loan, and
• finding a mortgage broker to explore suitable options tailored to your financial situation.

» MORE: 11 ways to avoid LMI

4. Apply for conditional approval

Once you’ve got your finances in order and made progress on saving for your deposit, you can apply for conditional approval, also known as home loan pre-approval. Conditional approval is an indication of your ability to get a home loan and is optional but, generally, highly recommended. 

The benefit of pre-approval is that it shows you how much you can borrow, helping you narrow your property search. Additionally, pre-approval is typically faster than full approval, so you can start searching for competitive properties sooner. 

Pre-approval is subject to you meeting the same home loan eligibility conditions that would be required for a final or unconditional loan, including proof of employment and income, savings, a qualifying credit score, and any other requirements set by the lender.

How long does pre-approval take for a home loan? 

The pre-approval application process can take as little as a few hours and generally no more than a few business days, as long as you provide the documentation promptly. However, some lenders can take up to several weeks to finalise a pre-approval if there are issues with the documentation provided or other unforeseen delays occur. 

To avoid delays, check with prospective lenders about their typical processing times and ensure you can provide accurate and complete documentation upfront. If the timeline doesn’t suit you, consider choosing another lender.

5. Shop around for potential properties

Shopping around for a property can be an exciting but sometimes frustrating process. Some people are lucky and find their ideal home quickly, while others may need more time to find the right fit. The key is to stay patient and focused on your goals.

How long does it take to find a home?

This really is a ‘how long is a piece of string?’ question. On average, a 2019 article on realestate.com.au found that buyers spent an average of nine months searching for a home. However, given that those with a median income can only afford 13% of the properties on the market, as mentioned above, it’s safe to say finding attaintable options has become even more challenging. And limited affordable housing supply continues to make the process more competitive and time-consuming.

Once again, it pays to be organised so you’re in a position to make offers on homes you like  and negotiate when sellers counter. Create a spreadsheet to track shortlisted properties, including features, price, and inspection details. Then, be ready to act quickly when the right home is available.

» MORE: How to negotiate house price

6. Engage a conveyancer or solicitor

Once you’ve found a property to buy, you’ll need to engage a solicitor or conveyancer to handle the legal aspects of the purchase. This includes, but is not limited to: 

• conducting a title search,
• reviewing and preparing contracts,
• managing payments, including stamp duty, and
• settling the property on the day.

How long does this step take?

It shouldn’t take much time to find a good conveyancer. Ask for recommendations from friends or family, or search online for professionals with strong customer reviews. Industry organisations, like the Australian Institute of Conveyancers, can also help point you in the right direction. 

With regards to the title search, this process typically takes a few days, up to a maximum of a couple of weeks, unless there’s a serious issue with the title. To plan for potential delays, ask your conveyancer if they anticipate any issues with the property you’ve chosen. 

» MORE: From buyer’s agents to brokers and lenders, these are the professionals involved in buying a home

7. Conduct relevant inspections 

Before making an offer or bidding at auction, it’s always a good idea to get a building and pest inspection to ensure the property is structurally sound and free of pest issues. These inspections can uncover costly problems, such as water damage, termites, or foundational issues, that may affect your decision to buy.

If you’re buying a unit on strata title, you may not need to arrange your own inspections, as the necessary information is typically included in the strata report. However, confirm this with your conveyancer to avoid missing anything critical.

How long do inspections take?

Building and pest inspections generally only take a few hours to complete, with reports often provided within 24 to 48 hours. Confirm the inspector’s reporting turnaround time  to ensure timely scheduling and avoid delays.

8. Make an offer — or bid at auction

Once you’ve found a suitable property, you need to make an offer, or alternatively, bid at auction. An offer is not legally binding until both parties have signed the contract for sale.  

When making an offer, be prepared to negotiate and back it up with recent market data for leverage.

How long does it take for an offer to be approved? 

If the seller is in a hurry to sell, they might accept your initial offer within days. Alternatively, if the property is in a high-demand area it might take weeks or longer to negotiate successfully. Similarly, if the property is passed in at auction because the reserve is unrealistic, it could take weeks to negotiate a compatible price with the seller. 

If negotiations stretch out, it might be worth reevaluating how badly you want the property, particularly if the final price exceeds your budget.

» MORE: Buying a house at auction vs. private sale

9. Apply for unconditional approval

Applying for an unconditional, or final home loan, approval assumes you’ve already got home loan pre-approval. If, however, you have opted out of pre-approval, it’s essential to apply for your home loan as early as possible to understand your borrowing capacity and avoid delays. 

A final application may require a lot of documentation, so be prepared to expedite the process wherever possible. 

How long does home loan approval take?

Unconditional approval is the final stage in the entire loan process. At this point, the lender reviews your application and conducts a property valuation, which they arrange. Valuations typically take a few hours to a couple of days. 

If everything checks out, the lender will issue your loan contract, making the mortgage official. The total timeframe for unconditional approval varies based on your lender, the loan size and the term.

The whole process could theoretically be finalised within a few business days if you have a strong financial and employment history, provide accurate documentation promptly, and are working with the same bank you’ve used your entire life. However, delays may occur if the lender needs to recheck details or if there are issues with your credit report.

In general, allow at least a few weeks for the entire process between lodging your loan application and receiving unconditional approval.

How long does home loan approval last?

Both conditional and unconditional approvals are typically valid for 30–60 days, after which they expire, requiring you to reapply. Check your lender’s policy to ensure your approval remains valid within your intended timeframe.

» MORE: 7 tips for home loan approval

10. Sign the contract of sale

Once the contracts are exchanged and signed, the loan becomes official and the buyer pays the deposit in holding until settlement day.

How long does this step take?

Once your offer has been accepted and you have unconditional approval for a mortgage, preparing the contract-for-sale document may take a few days, depending on what’s involved. Your solicitor may need to obtain the title deeds or other essential information from relevant agencies, which can add to the timeline. 

Generally speaking, if the seller has accepted the offer, your loan has been approved, and your solicitor is happy with the state of the contract, there shouldn’t be any impediment to signing it. However, delays could arise if discrepancies are found during the contract review or if additional documentation is required.

» MORE: Delayed settlement? Here’s what to do

11. Do a pre-settlement inspection 

It’s always a good idea to do a final, pre-settlement inspection to confirm that there aren’t any nasty surprises and that you’ve got what you pay for. Check for any last-minute issues, such as damage, missing fixtures, or unaddressed repairs.

How long will the inspection take?

A pre-settlement inspection should only take a few hours, unless it unearths something major. To avoid time conflicts, schedule the inspection shortly after exchanging contracts, leaving ample time to address any issues before settlement.

Avoid scheduling the inspection on settlement day, as discovering unresolved issues at the last moment may delay the process or leave you without recourse.

» MORE: 6 ways to cut house settlement costs

12. Prepare for settlement day

Settlement is when your conveyancer performs the transfer of ownership and the title deeds are handed over. During this process, the bank transfers the remainder of the loan amount to the seller, while the deposit held in trust is also released. Once everything is finalised, you’ll receive the keys and are free to move in on settlement day. 

How much long does settlement take?

The time between contract exchange and settlement, also known as the settlement period, is agreed on by the buyer and the seller. In Australia, the settlement period can be anything from a minimum of 30 days to 150 days or even longer, if agreed upon. 

The standard settlement timeline is usually 42 days (six weeks), although shorter or longer periods (within 30-90 days) may be negotiated based on circumstances.