Pre-approval tells you what a lender is likely to lend before you make offers, giving you a realistic budget. But the purchase price is only part of the total cost, and buyers who plan for the rest are far less likely to be surprised.
Start with pre-approval
A lender assesses your income, expenses, deposit and credit history to confirm a borrowing amount, usually valid for around three months. It is not a guarantee, so keep your circumstances unchanged and re-confirm before exchange.
Count the full cost
Beyond the deposit, budget for stamp duty (which varies by state and may attract concessions for first-home buyers), legal fees, inspections, lender fees and mortgage insurance if your deposit is below 20 percent.
Keep a working buffer
Settlement is not the end of the cost story. Council rates, strata fees, insurance and ongoing maintenance all begin shortly after you move in, so leave room in the budget for the first year of ownership.