A Home

Purchasing a property is not something most of us do very often, so even if you have purchased before you may want to brush up on what you need to do to secure finance for a new property.

The deposit

The amount you will need to save will be made up of a deposit plus extra to cover purchase costs.

Things your need to know about the deposit:

  • The minimum deposit most lenders require is 5% of the purchase price. So for example, if you are purchasing a property for $350,000, 5% would be $17,500.

  • The cost of lenders mortgage insurance (LMI) will be added to the loan if your deposit is less than 20% of the value of the property. To avoid mortgage insurance, you would need to contribute at least 20%, so for the example above it would be $70,000. 

    To find out more about LMI click here.

Plus purchase costs

For each of these costs do calculations and get quotes so you know how much you will need.

  • Stamp Duty is usually your biggest cost when you purchase a property. Click here to work out how much it will be.

  • Registration fees charged by the state government. These are estimated in the stamp duty calculator above.

  • Loan setup costs which may include application and valuation fees.

  • Legal fees charged by your solicitor or conveyancer.

  • Pest, building and strata reports for advice on the property from an independent expert.

  • Adjustments to council rates, water and electricity.

Calculating the amount you need to set aside for the deposit plus purchase costs is a key step in working out when you are going to be able to purchase a property. For a more detailed look at this click here.

How much can I borrow?

Your borrowing capacity or serviceability is the calculation done to determine how much you can afford to make in repayments.

This is done by deducting your living expenses and other commitments from your annual income and coming up with repayments that fit comfortably within your means.

To find out how much you can borrow, you can:

  • Use a calculator to get an estimate of how much you can borrow.
    Try one here

  • See if you qualify. To get a more accurate idea of how much you can borrow with State Custodians,
    click here

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 13 72 62

Read more about this in our blog ‘Borrowing power: How much can I borrow?’

Choosing a home loan

Comparing interest rates between different lenders is just the start of the process.

Don’t forget about exploring other elements of the loan and lender like:

  • Different loan options

  • Setup and ongoing fees

  • Features like offset accounts, ability to pay extra, redraw and options to access redraw

  • Lenders customer service record

  • External recognition like awards

Use this calculator to compare two different loans with different interest rates and fees. You can also get a Key Facts Sheet for most loans and compare these side by side. This will give you a range of standardised information tailored to your loan amount and loan term.

Formal pre-approval

Getting formal pre-approval prior to making offers is really important:

  • Understand how much you can borrow and in turn what purchase price you can afford

  • Get your home loan research done, so you can focus on finding the right property

  • Confidence to make offers subject to full finance approval

  • Speed up the process once you find a property and allow you to lock in the purchase faster

  • If you have any questions when making offers you will have someone to ask

Not all pre-approvals are the same. So that you know exactly what you are getting check out our blog ‘6 things you may not know about home loan pre-approvals’

Steps in the purchase process

  1. Step 1. Formal pre-approval

    Formal pre-approval will involve filling in an application and providing documents like savings statements and payslips.

  2. Step 2. When your offer is accepted

    Once your offer is accepted you will need to:

    • Notifying your lender so that they can proceed to full approval of your loan. 

    • Getting a copy of the contract to your solicitor or conveyancer for them to review, and

    • Arranging a pest and building inspections or a strata report for units. You legal representative will advise what is needed.

  1. Step 3. Exchange of contracts

    Exchange of contracts occurs after you have formal loan approval and your legal representative is comfortable with the contract. You pay a deposit and commit to a settlement date usually in 30 to 60 days.

  2. Step 4. Settlement

    Settlement is when the property becomes yours and the keys are handed over. Your lender and your conveyancer or solicitor, will be working with you closely to ensure that everything is ready.

  3. Step 5. Following Settlement

    Once settlement is complete you will be able to finalise internet access to your loan and setup your repayments frequency and amount.

How we can help

Our Lending Specialists are ready to assist you. They can help you calculate the amount you need to contribute, how much you can borrow, navigate the loans you can choose from and help you understand the loan features.

They can also assist with applying for formal pre approval and ensure the process is simple and straightforward.

Have more questions?

Take a look at our blog, ‘top tips for buying property’ to read more about purchasing your new home. If you are still debating whether now is the right time to sell your current home and upsize, read more here.

Purchasing Home Loan Options


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Nothing short of exemplary

I would like to express how pleased I am with State Custodians. I have had many communications with your company while searching for my property and it has been nothing short of exemplary. Always friendly, helpful which puts me at ease. I am looking forward to working with State Custodians to help me pay off my loan so I can enjoy my property. I would readily recommend State Custodians to anyone.

Mount Waverley, VIC

Supportive team

As a first home buyer, I was amazed at the supportive team who answered every question that I had (and I had a lot!) professionally, and in a timely manner. They always had time for me and I felt as though they really cared. Thank you State Custodians for making this such a positive experience.

Plympton, SA

Happy home owners

We are new home loan customers of State Custodians. We just moved into our house on the weekend. We could not have asked for better support and assistance in purchasing our first home. They were very professional, efficient and went over and above to ensure that everything went as smoothly and as quickly as possible. Thank you very much.

Modbury Heights, SA


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