Buying your first home as a first home buyer in Australia is one of those moments where excitement and responsibility arrive at the same time. After months of searching, comparing lenders, saving for your deposit and confirming your approval, you finally have the keys. But the first 12 months can also feel unfamiliar because everything from your budget to your daily routine changes overnight.
Knowing what to do in the first 12 months of home ownership helps you settle in confidently and manage the transition from renting or living with family to running a home of your own.
Unconditional Finance breaks down the key stages so you can stay organised, understand your loan, and prepare for what comes next.
Settling In After Settlement
Once the settlement completes, your lender activates your loan, your conveyancer transfers ownership, and the property officially becomes yours. The first few days are mostly about getting organised and ensuring everything is set up correctly.
You may want to:
- Update electricity, gas, water, internet and council correspondence
- Notify your employer, bank, ATO, Medicare and other providers of your new address
- Confirm when your first repayment is scheduled
- Review whether your lender has set weekly, fortnightly or monthly repayments, as this may affect your budgeting
- Store your loan contract, settlement documents and insurance policy securely
Some lenders also send a welcome pack outlining repayment dates, online banking steps and any conditions noted in your contract. Policies differ between lenders, so reviewing this information early helps you avoid confusion about fees, redraw access or repayment timings.
If you want a clear refresher of how everything fits together from pre-approval to settlement, a guide on the steps to buying your first home can explain the full journey. Many borrowers begin with a standard first home buyer home loan, so your ongoing obligations will follow the terms set out in that structure.
Understanding Your Regular Property Costs
Your loan repayment is only one part of the broader property costs for first home buyers, which become clearer in the first year. The first year shows you the real pattern of ongoing property expenses, which often arrive quarterly or seasonally.
Common outgoings include:
- Council rates and water rates
- Strata levies (if applicable)
- Building insurance premiums
- Electricity, gas and internet
- Repairs and general maintenance
These costs vary depending on your local council, property type and usage. Many first-home buyers also notice that cost-of-living pressures play a role in their budgeting. Some lenders regularly review and update their household expenditure models to reflect rising expenses, which could influence future refinancing or borrowing potential.
Budgeting ahead can make a big difference, especially once you’ve seen a full year of bills. Guidance on managing expenses can be found through government resources such as MoneySmart.
Reviewing Your Home and Contents Insurance
Many lenders typically require adequate building insurance for the life of the loan. The first year is a good time to check that your cover still reflects your property’s replacement value.
You may want to review:
- Whether your sum insured remains accurate
- If your contents insurance needs updating after moving in
- Your policy excess
- Coverage for storm damage, leaks, flood or temporary accommodation
Insurance requirements may also vary slightly between lenders. Some lenders may require evidence of an active policy at settlement, while others might rely on your conveyancer. Reviewing your policy in the first year may help you remain compliant with your loan terms and be better prepared if you choose to refinance later.
If you own a strata property, note that strata insurance typically covers the building structure but not your internal fixtures or belongings. Separate contents insurance is usually needed.
Creating a Simple Home Maintenance Plan
Maintenance is one of the biggest shifts from renting to owning. Instead of contacting an agent or landlord, you now manage repairs yourself. Creating a home maintenance checklist in Australia for your first year helps prevent small issues from becoming costly problems.
Common tasks include:
- Gutter cleaning before heavy rain
- Smoke alarm testing
- Annual pest inspections
- Servicing your heating or cooling systems
- Checking taps, drains and exterior drainage
- Setting aside a small repair fund
A documented maintenance history can also support future lender valuations. Valuers often consider overall condition and recent upkeep when assessing a property. While it cannot guarantee a higher valuation, well-maintained homes may help avoid valuation reductions caused by visible deterioration.
Monitoring Your Home Loan Throughout the Year
Understanding how your loan behaves month to month is one of the most important parts of your first year as a homeowner. Each lender interprets repayment rules, redraw access and interest calculations differently, so it helps to stay familiar with your own loan features.
Review your loan statements
Confirm your mortgage repayments in Australia are correct and that interest and fees align with your contract.
Offset account usage
If your loan includes an offset account, the interest charged could be reduced depending on your balance. Our guide on how your offset account balance affects interest explains how lenders typically calculate daily interest.
Redraw rules
Some lenders classify redraw as part of the loan, while others treat it separately, which can affect access times and limits. Policies differ widely.
Extra repayments
If allowed under your loan type, some borrowers choose to make small extra repayments when their budget allows. Our guide to how to pay off your mortgage faster explains how these payments may affect long-term interest outcomes.
Market movements
Lenders may adjust variable rates throughout the year based on funding costs or internal pricing decisions, even when the RBA does not move the cash rate. Staying aware of these shifts helps you understand your loan’s behaviour.
Building Good Savings Habits Once You’ve Moved In
Home ownership changes your financial rhythm. After a few months of bills, seasonal expenses and maintenance, you’ll have a clearer sense of what you can comfortably save.
Many homeowners focus on:
- A small emergency fund
- A maintenance buffer
- Saving for future upgrades
- Regular automated savings
Lenders have also updated their serviceability assessments in recent years, which may include applying more conservative buffers and higher living cost benchmarks. Strong savings habits can support smoother assessments if you plan to refinance later.
Planning Renovations or Upgrades for the Future
It’s natural to picture new flooring, a fresh kitchen or outdoor improvements as soon as you move in. But the first year often gives you better insight into what the home truly needs and when.
You may want to:
- Observe how the home performs in different seasons
- Assess natural light, airflow and room functionality
- Gather quotes from licensed trades
- Understand which upgrades require approval
- Save gradually toward expected costs
Some homeowners might explore equity later to help fund improvements. You can learn more about using equity for renovation loans and general home equity loan requirements if you’re planning ahead.
Renovation lending is policy-driven. Some lenders may require updated valuations or formal plans, while others might allow cosmetic changes with fewer requirements. Understanding how your lender interprets renovation lending helps you prepare early.
Tracking Your Equity Growth and Long-Term Potential
Equity for first home buyers is the difference between your loan balance and your property’s value. It changes gradually through repayments and market conditions. Property values may rise, fall or remain stable depending on your suburb and local demand.
In the first year, you might:
- Review property estimate tools
- Track your loan balance as it reduces
- Get familiar with how valuers compare recent sales
- Consider how equity may support future decisions
Lender valuations often follow conservative guidelines and usually rely on recent comparable sales. If you originally took out a first home buyer home loan, reviewing its structure can help you understand how equity has accumulated so far.
Reviewing Your Loan and Personal Plan at the 12-Month Mark
By your first anniversary as a first home buyer in Australia, you have usually seen how your home, costs and loan perform across different seasons. This makes it a good time to review your financial settings.
You may want to consider:
- Whether your repayment frequency suits your income
- Whether your property costs match your expectations
- How interest rate changes have affected your loan
- Whether your savings pattern feels sustainable
- Whether you want to plan for upgrades or refinancing
Today’s market changes quickly. Some lenders may offer retention pricing to existing borrowers, while others may focus on sharper pricing for new customers. Reviewing your loan annually helps you understand whether refinancing after the first year could be worth considering. Any change is still subject to lender criteria, valuation outcomes, and your financial position.
When to Speak With a Broker for General Guidance
A mortgage broker in Sydney can help you understand how different lenders treat offset accounts, redraw rules, equity access, and loan terms. We can walk you through general options, explain lender policies and help you stay informed without offering personal financial advice.
Many borrowers find that reviewing their home loan management in Australia during the first year gives them clarity and confidence about their next steps.
Bringing Your First Year of Home Ownership Together
Your first 12 months as a homeowner are all about settling in, learning how your property works and getting comfortable with your new financial rhythm. Each step, from organising utilities to tracking your loan balance, helps you build confidence and stability. With a clear understanding of your expenses, loan features and long-term goals, you can make decisions that support your financial wellbeing both now and in the years ahead.
Lender policies and market conditions will continue to shift, from interest rate movements to changes in how lenders assess expenses, savings patterns and equity. Staying aware of these developments helps you remain prepared for future decisions, whether you plan to renovate, refinance or simply review your current loan structure.
If you’d like to see what options may be available for your situation, our mortgage brokers in Sydney at Unconditional Finance can help you compare policies and guide you through the next steps.
Disclaimer: The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention are taken in its preparation, any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates are subject to change. Approved applicants only.
Frequently Asked Questions (FAQs)
Most lenders set up your repayment method during the loan acceptance process, but it’s still important to double-check once settlement occurs. Your first repayment date may vary depending on the lender and the loan type. Confirming this early helps you avoid missed or late payments.
Yes, this can happen. Some lenders include partial-month interest or settlement adjustments in the first statement, which may not appear later. If anything looks unclear, your lender or broker can explain how the calculation works.
Fees can vary depending on your lender and loan features, such as redraw access or offset accounts. If a fee appears that you don’t recognise, it’s best to check your loan contract or contact your lender for clarification. Some fees may be standard, while others may relate to specific transactions.
A formal valuation is usually not necessary unless you are planning to refinance or access equity. Online estimate tools can give you a general idea, but lender valuations may differ because each lender applies its own risk and assessment criteria. A Sydney mortgage broker, such as Unconditional Finance, can help you understand when a valuation may be useful.
Many lenders allow repayment changes between weekly, fortnightly or monthly payment cycles. Eligibility typically depends on your loan type and the lender’s policies. Making a change may help align your repayments with your pay cycle, but it won’t be suitable for every borrower.
It’s usually helpful to let your lender or mortgage broker know if your circumstances change. Lenders may need updated information if you request a variation, repayment change, or future refinance. Each lender may assess income changes differently, especially for casual or variable work.
Some homeowners review their loan early, but whether refinancing is suitable depends on valuation outcomes, lender policies and your financial position. Some lenders may also charge break costs if you’re on a fixed rate. Reviewing options does not commit you to refinancing, but it can help you understand your position for future planning.