Building your first home is one of life's most exciting milestones. But it's normal to feel daunted when you're just getting started. There are a lot of things to consider when building a house. From understanding your finances and choosing a design, to contracts, construction stages and key handover, the pathway to building your dream home can be quite the learning curve.
The good news? You don’t have to figure it out alone. At Henley, we’ve been guiding first-time buyers through the home-building journey for more than 20 years. We know which questions come up most often and we’re here to make sure you feel confident and informed at every step.
We answer 21 of the most common questions asked by first home buyers in Victoria, starting with how to get the ball rolling.
The construction process
1. Where should I start if I’m ready to build my first home?
If you’re planning on building your first home, start by doing some initial research and speaking with a new home consultant. This early stage is all about gathering information and understanding your options.
A consultant can help you explore home designs that suit your lifestyle and budget, and walk you through display homes to visualise layouts. They can also guide you through land options if you haven’t secured a block or help you choose designs to suit your block if you've already purchased land.
It's also a good time to talk to finance specialists to understand your borrowing capacity and if you're eligible for any grants.
2. What are the different stages of home building and how long do they take?
Building a home happens in six main stages:
- Base: The site is prepared and the concrete slab is poured.
- Frame: The structural framework, including walls and roof trusses, is constructed.
- Lock-up: External walls, windows and doors are installed, securing the home.
- Fixing: Internal elements like plastering, cabinetry, doors and skirting boards are fitted.
- Fit-off: Painting, tiling, flooring and final fixtures are completed, ready for handover.
- Final inspections: Presentation of your completed new home!
Each stage typically takes 2–4 weeks, depending on design, weather and materials. Stay in touch with your builder throughout the building process to manage expectations and any unforeseen circumstances.
3. Is lock-up stage when we get the keys?
Lock-up stage is when your home’s external structure is completed and can be securely "locked up." This means the roof, external walls, windows and doors are installed, making the house weatherproof and secure.
While lock-up stage is an important milestone, you won't get the keys just yet. With major external work completed, work begins on the internal fit-out, like plastering, cabinetry and flooring.
4. What does practical completion mean?
This is the stage where your builder has finished all contracted work and your home is ready for handover. It means the house is safe, functional and complies with all building codes and approvals.
At this point, you'll do a final walkthrough (also called a Practical Completion Inspection or PCI) with your site supervisor to check for any issues or touch-ups required. Once these are addressed and final payment is made, handover takes place and you can move in.
Costs and budgeting
5. Which features are included in the base price of a new home?
Inclusions can vary widely between builders and home designs so it’s important to understand exactly what comes with the base price. Start by reviewing the builder’s catalogues or inclusions brochures which outline what's standard across different collections or packages.
Ask your new home consultant to walk you through the inclusions in detail and make sure these features are clearly outlined in your contract before signing. This helps avoid surprises later and ensures you know what’s included and what’s considered an upgrade.
6. Are there any extra costs I should prepare for, like site works or landscaping?
Even with a fixed-price contract, there can be additional costs depending on your land and location. These are important to factor into your overall budget early on. Common extra costs include:
- Site costs: These cover things like soil testing and excavation. The final cost depends on the land’s slope, soil type and accessibility.
- Landscaping: While some packages include basic landscaping, more detailed or custom work may come at an extra cost.
- Estate requirements: Some estates have design guidelines that may affect your choice of façade, fencing or driveway which can add to the total build cost.
Your builder should provide a breakdown of any known extras during the quoting process.
7. How do standard inclusions differ from upgrades?
Standard inclusions are the quality features built into the base price. Upgrades are optional extras like higher-end appliances or custom lighting. Henley’s inclusions are designed to provide exceptional value, with many premium features included as standard.
8. What’s the best way to stay within my budget?
Start by setting a clear budget that includes a buffer for any unexpected costs. Focus on your must-haves and be realistic about what you can comfortably afford. Always ask for upfront pricing and check whether any potential hidden costs like site works are excluded from the initial quote.
Make sure you understand exactly what’s included in the base price to avoid surprises down the track. Don’t forget to factor in other costs like mortgage insurance, utility connection fees and moving from your existing home.
Financing and Government support
9. How much deposit do I need when building my first home?
The required deposit varies depending on your lender and financial situation. Generally, a deposit of 5% to 20% of the total property value is needed. Some lenders may offer loans with lower deposits but this often requires Lenders Mortgage Insurance (LMI). Henley collaborates with finance specialists who can assess your individual circumstances and guide you through the deposit requirements.
10. Am I eligible for the First Home Owner Grant or other government incentives?
First home buyers in Victoria may be eligible for the First Home Owner Grant (FHOG), a $10,000 payment for new builds under $750,000. Eligibility criteria include being an Australian citizen or permanent resident, being at least 18 years old and occupying the home as your principal place of residence for a continuous period of 12 months.
11. What is stamp duty and when do I pay it?
Stamp duty is a government tax levied on property transactions. In Victoria, it's calculated based on the property's value and is payable at the time of settlement. First home buyers can save money with an exemption if the total property value is under $600,000 (or a reduction if the value is between $600,000–$750,000). It's essential to factor stamp duty into your budget when planning your home purchase.
12. Do I need home loan loan pre-approval before speaking with a builder?
Home loan pre-approval (also known as conditional approval) is a lender's indication of how much you may be able to borrow based on a preliminary assessment of your financial situation. It’s not a guarantee but gives you a budget to work with when looking at land and home designs.
While not mandatory, obtaining home loan pre-approval is highly recommended. It provides a clear understanding of your borrowing capacity, helping you set a realistic budget for your new home.
13. How do progress payments work with a construction loan?
With a construction loan, your lender releases funds in stages, aligned with key build milestones, such as slab pour, frame completion, lock-up and final handover. These are called progress payments and help you manage cash flow more effectively. You typically only pay interest on the amount drawn down at each stage, not the full loan upfront. Once the build is complete, it transitions to a typical mortgage with principal and interest repayments.
14. Do I need to take out mortgage insurance?
If your deposit is less than 20% of the property's value, most lenders will require you to pay for Lenders Mortgage Insurance (LMI). LMI protects the lender in case you default on the loan. While it adds to your upfront costs, LMI can enable you to enter the property market sooner with a smaller deposit.
First home buyers may be eligible for the federal government's First Home Guarantee which enables an eligible home buyer to buy a home with as little as 5% deposit without paying LMI. Conditions apply.
Land and location
15. Is it better to buy land first or go with a house and land package?
Both options can work well depending on your goals and how much flexibility you want. Buying vacant land first gives you control over the location and allows time to decide on your design, however this can limit your floor plan options.
House and land packages simplify the process. You get a home design that’s already matched to a block, with known costs and streamlined approvals. It’s often faster, easier and ideal for first home buyers looking for a clear path to a brand new home.
16. What should I consider when choosing a location for a new home build?
Choosing the right location is just as important as picking the right home. Think about your lifestyle needs now and into the future, like commute times, schools, shopping centres, public transport and healthcare.
Also consider the growth potential of the suburb, the feel of the neighbourhood and the type of community you want to live in.
17. How do developer guidelines affect my home design and options?
Many new estates have developer guidelines—rules that ensure homes meet a consistent look and feel. These might cover roof pitch, façade styles, fencing, landscaping and setbacks (the minimum distance your home must be built from the boundaries of your block of land). While these guidelines protect the value and appeal of the community, they can influence your choices.
Choosing a builder
18. What should I look for when comparing home builders for my first home build?
When comparing builders look for more than just price. Ideally your builder should tick all the boxes, including reputation, quality of work, standard inclusions, contract transparency and how well they support first home buyers. It’s also important to check that they’re fully licensed and affiliated with trusted industry bodies like the Housing Industry Association (HIA) or Master Builders Association. Choosing the right builder can make all the difference to your experience, especially if it’s your first home.
19. How often will I be updated throughout the build process?
Regular communication is essential for a smooth and stress-free building experience. Most builders will provide updates at key milestones, like site start, slab pour and frame completion. You may also have access to a dedicated point of contact, like a site supervisor or customer support consultant, to keep you informed and answer questions along the way. Henley also has an online portal, MyHomeHQ, where you can access updates on your build anytime, anywhere.
20. What kind of warranties and protections are included with a new home?
When choosing a builder, it’s important to understand what warranties and protections are offered. Look for builders who offer a structural guarantee, manufacturer warranties on appliances and fixtures and a maintenance period after handover to address any defects or minor issues.
Our homes comes with a structural guarantee of 50 years*. We’re proud to put our name on our builds and will confidently stand by our workmanship for far longer than the industry standard.
21. If issues arise after I move in, what support is available?
It's important your builder offers a clear process for reporting and resolving any issues that arise. Most builders provide a maintenance period and structural warranty, during which you can raise concerns like minor defects or adjustments.
When comparing builders, look for one with a reliable aftercare or customer service team and transparent warranty terms so you can feel confident that support continues well beyond handover.
Ready to get started?
Building your own home is an exciting time and with the right support, it can be one of the most rewarding experiences of your life.
As Victoria’s leading first home builders, Henley offers guidance, transparency and high-quality homes that can be tailored to your lifestyle and budget. Explore our most popular home designs to find the perfect fit for your future.
If you're ready to start building your first home, our Breakthrough collection features a stylish range of new homes designed especially for first time buyers. Choose from a range of cleverly designed floorplans and take advantage of our streamlined process to get you into your new home sooner.
*Exclusions apply, speak to your new home consultant.
