Thinking of Buying a House? Here’s Your Renter-Friendly 2026 Starter Guide

If you’re renting now but dreaming of buying a home, 2026 could be your year especially with interest rates expected to stabilise and more first-home incentives available. 

Here’s the roadmap that makes the journey feel less overwhelming and more achievable.

1. Start With Your Borrowing Power

Banks assess your borrowing capacity based on: 

• your income 

• your expenses 

• your credit score 

• your existing debts 

• your living costs 

• the current interest rate environment 

Many renters discover they can borrow more or less than expected. Knowing your number early saves time and sets realistic expectations. 

2. Determine your Deposit 

Not long ago, you needed 20% of the upfront cost of a home plus stamp duty to purchase a home. Nowadays, you often need far less than that with many lenders often requiring far lower deposits, however this often comes with the additional cost of Lenders Mortgage Insurance. If you are a first home buyer, it may be worth exploring the Australian Government 5% Deposit Scheme. If you are a single parent, you can purchase a property with a deposit of as little as 2%.  

Source: Australian Government 5% Deposit Scheme 

3. Understand Your Upfront Costs

Buying a home involves more than a deposit. Make room for: 

Mandatory Costs 

• Stamp duty (unless you're eligible for exemptions) 

• Legal / conveyancing fees 

• Loan setup or application fees 

• Building & pest inspections 

Lifestyle & Moving Costs 

• Furniture 

• Moving trucks 

• Cleaning 

• Unexpected repairs 

Mapping these out reduces surprises and helps you budget with confidence. 

4. Set Your 2026 Buying Timeline

Your search will feel more achievable when you break it down. Example timelines: 

3-month plan: 

• Get pre-approval 

• Confirm the deposit you need 

• Start inspections immediately 

6-month plan: 

• Build your deposit with a goal in mind 

• Research suburbs 

• Adjust spending habits 

9–12 month plan: 

• Improve credit score 

• Strengthen savings 

• Review government incentives 

Clarity = confidence. 

5. Get Pre-Approval Ready

Pre-approval is your ticket to shop seriously. 

It helps you: 

• avoid falling for homes outside your range 

• negotiate with confidence 

• move quickly if you find "the one" 

• show agents you're a serious buyer 

Most people describe this as the point where buying suddenly feels real. 

Final Thought 

Buying a home isn’t just a financial decision; it’s a progression. The sooner you start planning, the sooner you’ll feel ready.