Buying your first home in 2026 doesn’t have to be overwhelming. While the market changes, the fundamentals of a successful purchase remain the same: preparation, patience, and professional advice.
If you’re planning to stop renting and start owning this year, here are the four essential steps to become “market-ready.”
1. Boost Your Borrowing Power
Before you look at houses, you need to know what a lender thinks of your finances. Your “borrowing power” is the amount a bank is willing to lend you based on your ability to repay.
To maximize this, consider these simple moves:
- Reduce Your Expenses: Lenders look at your living expenses over the last 3–6 months. Small things, such as canceling your unused subscription services or reducing your restaurant visits, can actually help increase your loan limit.
- Lower Credit Card Limits: Even if your card has a $0 balance, lenders assess the limit as a potential debt. For example, reducing a $10,000 limit to $2,000 can significantly increase your borrowing capacity.
- Clear Small Debts: If possible, pay off Buy Now, Pay Later (BNPL) balances or small personal loans before applying.
2. Get Pre-Approval
In a competitive market like 2026, browsing without pre-approval is like going shopping without a wallet.
Why it matters:
- Confidence: You’ll know exactly what your limit is, so you don’t fall in love with a home you can’t afford.
- Credibility: Real estate agents take pre-approved buyers more seriously. It shows you’re ready to sign a contract immediately.
- Speed: When you find the right place, you can make an offer with confidence, knowing the difficult part of the finance assessment is already done.
3. Don’t Forget the “Hidden” Costs
Many first-home buyers focus solely on the deposit, but there are several upfront costs that can catch you off guard. Make sure to budget properly for:
- Building and Pest Inspections: Essential for spotting structural issues or termites before you commit.
- Conveyancing Fees: The legal costs for transferring the property title into your name.
- Stamp Duty: While many 2026 government grants offer concessions, you should always check if you’re exempt or need to pay a portion.
- Lenders Mortgage Insurance (LMI): If your deposit is less than 20%, you may need to factor in this one-off insurance cost. LMI can be avoided if you are eligible for the 5% Guarantee scheme.
4. Prioritize Needs over Wants
It’s easy to get distracted by shiny new appliances or trendy paint colors. However, in 2026, you should focus on the things they can’t change:
- Location: Is it close to transport, work, or schools?
- Layout: Does the floor plan work for your lifestyle now and in three years?
- The “Bones”: A home with a solid structure and good natural light is often a better investment than a stylish home with hidden maintenance issues.
Start Your Journey Today
The best time to prepare for a 2026 purchase is right now. At Goodwill Finance, we help you avoid all the hassle and confusion by comparing multiple loans to find the one that fits your goals. Contact us on 0423 459 480 or [email protected] to start your planning today.
Disclaimer: The information provided is of a general nature and does not take into account your personal financial circumstances, goals, or needs. It should not be considered financial or investment advice, nor a recommendation or invitation to acquire financial products or services. You should not act solely on this information without obtaining professional financial advice tailored to your situation. Any loan application is subject to a full assessment of your financial position, as well as the lender’s terms, conditions, fees, charges, and eligibility criteria.
