The home buying process in Australia runs through seven steps, from checking whether you are eligible to buy through to settlement, the day ownership changes hands. Several steps sit under state law rather than federal law, so the same step looks different depending on where you buy: the cooling-off period is 5 business days in Queensland and 3 clear business days in Victoria.
This article covers sequence and timing. If you are still deciding which city, which team and what it all costs, start with our guide to buying a house in Australia.
The home buying process in Australia runs through seven steps: (1) check your legal eligibility, (2) set the budget and get pre-approval, (3) choose between an established property and a house and land package, (4) obtain foreign investment approval if you are a foreign person, (5) sign the contract and work to your state’s cooling-off period, (6) make the contract payments, and (7) settle, when ownership transfers.
At the budgeting step, an Australian citizen or permanent resident buying or building a new home in Queensland may be eligible for the first home owner grant: $30,000 for contracts signed on or after 20 November 2023, where the value of the home including land is under $750,000 and the other conditions are met (Queensland Revenue Office, 5 August 2026). See our article on the first home owner grant in Queensland.
Where the home buying process in Australia begins: your legal eligibility
The opening step depends on residency status, not budget. Australian citizens and permanent residents are excluded from the definition of a foreign person and do not need approval to buy, though the Australian Taxation Office notes that a permanent resident not ordinarily resident in Australia may be a foreign person in some cases.
A temporary resident, in the ATO’s wording, holds a temporary visa allowing a continuous stay of 12 months or more regardless of time remaining, or resides in Australia with a permanent visa application lodged and a bridging visa until it is finalised (ato.gov.au, 13 May 2026). Temporary residents are treated as foreign investors. Per foreigninvestment.gov.au (1 July 2026):
- Foreign investors generally need to notify the ATO before acquiring residential land, regardless of value.
- A new or near-new dwelling is not usually subject to conditions concerning its usage.
- Vacant residential land bought for development is generally conditional upon construction being completed within 4 years and the land not being sold until construction is complete.
- From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings, with limited exceptions. Whether one covers a particular purchase should be discussed with a solicitor within the scope of their registration.
Steps 1-2: Plan, set the budget and get pre-approval
Start with why you are buying and what the budget is. It has to carry more than the listed price:
- Transfer duty (commonly called stamp duty)
- AFAD — additional foreign acquirer duty, which applies to foreign acquirers in Queensland
- Solicitor or conveyancer fees
- Building and pest inspection fees
- The foreign investment application fee, if you need approval
Queensland Revenue Office publishes the current AFAD rate as 8% in addition to the transfer duty rate, calculated on the AFAD residential land share of the dutiable value (qro.qld.gov.au, 31 July 2026). Cost each item against your own transaction rather than applying a rule-of-thumb percentage. Detail is in our article on additional foreign acquirer duty in Queensland.
Step two is pre-approval. It indicates how much a lender is prepared to lend and is usually valid for a limited period; conditions and expiry differ between lenders, so that belongs with your bank or a licensed mortgage broker within the scope of their registration.
Step 3 of the home buying process in Australia: established home or house and land package?
An established home or apartment. Listed on the major portals and through local agencies, with a faster handover since the dwelling already exists. For buyers who are not citizens or permanent residents the field is narrower: new and near-new dwellings.
A house and land package. You choose a block and a house design from a project’s range, and the purchase splits into two contracts: one for the land, one for the build. It is a new dwelling on vacant land, so it sits inside what foreign investors are generally permitted to buy, subject to the conditions the approval carries.
Step 4: Foreign investment approval, if you are a foreign person
If you are not a citizen or permanent resident, this step sets the pace of everything after it. The ATO states that before you enter any contract to buy residential property you need it to grant you approval or an exemption certificate, and that it takes up to 30 days to consider an application after receiving full payment of the fee. You can apply for an exemption certificate even if you have already signed, provided the contract is still conditional (ato.gov.au, 13 May 2026). Contract wording should be handled by a solicitor within the scope of their registration.
The fee is payable up front and scales with the value of the property — see our article on FIRB application fees for residential property.
Step 5: Signing the contract, and the cooling-off period in each state
A cooling-off period is the window in which a buyer can withdraw from a signed contract. It is set by state law, so its length and cost change across borders. Each of the three states below was checked against that state’s own government page.
| State | Cooling-off period | Amount the seller may retain if you withdraw |
|---|---|---|
| Queensland | 5 business days, starting the day you receive a copy signed by both parties | Up to 0.25% of the purchase price |
| New South Wales | 5 business days from exchange, ending 5pm on the fifth business day; 10 business days off the plan | 0.25% of the purchase price |
| Victoria | 3 clear business days from the date you sign the contract | $100 or 0.2% of the purchase price, whichever is greater |
Sources in table order: Queensland Government, Cooling-off period (28 October 2020); NSW Government, Contracts and deposits when buying property in NSW (22 September 2025); Consumer Affairs Victoria, Buying property by private sale (9 September 2022). In each state the clock starts from a different trigger, which matters if you are reading a guide written for another state.
On auctions the three pages agree. Queensland Government states that auctions have no cooling-off period, and that it also does not apply to a private treaty contract entered within 2 business days of an unsuccessful auction where the buyer was a registered bidder. NSW Government states that none applies when you buy at auction. Consumer Affairs Victoria states that it does not apply at a public auction, or within three clear business days before or after one. The period can also be given up: Queensland allows a waiver or shortening by written notice, NSW a 66W certificate.
Deposit terms — how much, when it is payable, and which account it is held in — are set in the contract of sale and vary from transaction to transaction. Reviewing those clauses before you sign should be handled by a solicitor or a suitably qualified legal or conveyancing professional within the scope of their registration.
Under the Queensland seller disclosure scheme, which commenced on 1 August 2025 under the Property Law Act 2023, a seller must give the buyer a disclosure statement and the prescribed certificates before the buyer signs (qld.gov.au, 21 July 2025).
Step 6: How payments are staged in the home buying process in Australia
An established home or apartment. A deposit at contract, then the balance in a single payment at settlement.
A house and land package. Two contracts, two payment patterns.
- The land contract: the balance is paid when the land is registered and that contract settles.
- The build contract: money is released in instalments as stages are completed — commonly slab, frame, lock-up and fit-out, then practical completion — against the schedule in the contract.
For domestic building work in Queensland, the Queensland Building and Construction Commission publishes a maximum deposit of 5% of the contract price where the work is valued at more than $20,000, with higher limits for smaller jobs. Above $3,300 the number and timing of progress payments is negotiated between owner and contractor, and QBCC’s worked example is that a contractor cannot claim more than 50% of the contract price, including the deposit, until at least 50% of the onsite work is complete (qbcc.qld.gov.au, 27 June 2025).
What to check before releasing each payment is in our article on the new build construction process.
Step 7: Settlement — completion and handover
Settlement is the day ownership transfers. Queensland Government describes what usually happens: you pay the remaining purchase price to the seller, receive the title, get the keys and take possession. It states that settlement day is usually 4 to 6 weeks after the contract is finalised, but can be whatever length of time you negotiate with the seller (qld.gov.au, 28 October 2020). On a house and land package it follows the construction program.
Transfer duty has its own clock. Queensland Revenue Office states that documents must be lodged within 30 days from when the liability arises, usually the date the contract is signed or becomes unconditional, and that the notice of assessment then states the duty payable and the due date (qro.qld.gov.au, 14 November 2025).
After settlement, connect electricity, water and internet, and arrange building and contents insurance.
Document checklist for the home buying process in Australia
- A valid passport, and your current Australian visa if you hold one
- Evidence of your source of funds — bank statements, employment contract, income documents, translated and certified if issued overseas
- An Australian tax file number, if you will rent the property out or have income in Australia
- Your lender’s pre-approval letter, if you are borrowing
- Your foreign investment application or approval, if you need one
- Contact details for the solicitor or conveyancer acting for you
If the property is a lot in a community titles scheme the paperwork is longer: under the same scheme, the seller must also give the buyer a community management statement and a body corporate certificate. Allow time to read them before signing.
Frequently asked questions about the home buying process in Australia
How long is the cooling-off period in Queensland?
Queensland Government states 5 business days, beginning the day you receive a copy of the contract signed by both parties, or the next business day if it arrives on a weekend or public holiday. If you withdraw within the window, the seller may deduct up to 0.25% of the purchase price when refunding the deposit.
Is there a cooling-off period when you buy at auction?
Not in the three states checked above: the Queensland, NSW and Victorian pages each state that no cooling-off period applies to a property bought at auction, with the related exclusions set out earlier. Buyers elsewhere should check the page published by that jurisdiction. The practical consequence is that checks have to be finished before you register to bid.
How does paying for a house and land package differ from an established home?
A house and land package splits into two contracts. The land contract settles when the land is registered; the build contract releases money in instalments tied to completed stages. An established home is one contract, with the balance paid at settlement. The difference is cash flow: on a build you pay interest on the amount drawn down as construction continues.
Do I need a solicitor for the home buying process in Australia?
Contract review, transfer duty and the transfer of title should be handled by a solicitor or a suitably qualified legal or conveyancing professional within the scope of their registration. Nextstar Realty does not provide legal advice. Engaging someone before you sign leaves room to raise questions while the contract can still change.
What extra duty do foreign buyers pay in Queensland?
In addition to transfer duty, a foreign acquirer of AFAD residential land in Queensland pays additional foreign acquirer duty. Queensland Revenue Office publishes the current rate as 8% in addition to the transfer duty rate, calculated on the AFAD residential land share of the dutiable value (31 July 2026). Whether it applies to a given transaction should be confirmed with Queensland Revenue Office or your solicitor.
Can international students buy property in Australia?
A student holding a temporary visa that allows a continuous stay of 12 months or more is a temporary resident under the ATO’s definition, and is treated as a foreign investor: notify the ATO before acquiring residential land regardless of value, and buy within the categories open to foreign investors — which, from 1 April 2025 to 30 June 2029, generally exclude established dwellings, with limited exceptions.
Conclusion: follow the seven steps in order
The home buying process in Australia becomes more manageable when the steps are taken in order and the rules are read for the state you are buying in — the cooling-off period being the clearest example. Two things commonly stretch the timeline: foreign investment approval, which the ATO says can take up to 30 days after the fee is paid in full, and the construction program on a house and land package, which sets the settlement date.
For house and land packages around Brisbane, Nextstar Realty works alongside buyers from block selection through to each progress payment. Book a consultation to talk through the sequence that fits your circumstances.
Further reading
- Buying a house in Australia
- The new build construction process
- FIRB application fees for residential property
- Additional foreign acquirer duty in Queensland
Note on scope and timing: the figures and conditions above were checked on 8 September 2026 against foreigninvestment.gov.au, ato.gov.au, qld.gov.au, qro.qld.gov.au, qbcc.qld.gov.au, nsw.gov.au and consumer.vic.gov.au. Rules, rates and grants change; check the source for your jurisdiction when you buy.
Sources
- Queensland Government — Cooling-off period for residential property contracts
- Queensland Revenue Office
- Queensland Government — Buying owning home
- Foreign Investment Review Board — Residential land
This article is general information only and does not take into account your personal circumstances, financial situation or objectives. It is not legal, financial or taxation advice. You should obtain independent professional advice before making any property decision.
