Buying an apartment or house for the first time can be overwhelming if you're not sure of the process you need to follow.

It can also be more expensive than it needs to be as state and federal governments have a range of incentives to help you get on the property ladder by saving you tens of thousands of dollars, so it always pays to do your homework and be prepared. 

Below are some tips to help if this is your first time in the market. 

• Free money! – There are numerous grants and financial assistance programs that governments provide to encourage first-time buyers into the market. Some are state-based while there are also federal incentives. It pays to do some research or speak to your accountant or financial advisor. 


• Discounts and savings – The federal government has a “First Home Super Saver Scheme” run through the Australian Taxation Office. Another program is the “First Home Loan Deposit Scheme”, which helps you into the market with only a 5% deposit. Check out whether you qualify for a state stamp duty discount, too.


• Understand the lending landscape – It's not just the big banks that lend money. Check out the attractive rates being offered by credit unions and community banks. Also, talk to a mortgage broker whose expertise is free. They earn their commissions from lenders, not you.


• Get across all costs – You must know every expense that comes with buying and owning a home. A big one is Lenders Mortgage Insurance, a policy you pay for to protect your lender from you defaulting on your loan. One-off big bills include stamp duty and legal fees – and don't forget you'll need to cover moving costs and setting up your home. 


• Set your limit – Given the strength of the property market, your inclination will be to spend every cent. But don't let your mortgage make life a misery. Being a slave to a home loan is no fun and can cause stress in relationships. 


• Get a loan pre-approval – This will allow you to bid and negotiate knowing you have the support of your lender. If you find your ideal property and you haven't applied for a loan, you're likely to lose out to buyers who are better prepared and can act faster. Down the track, your lender will value the property before formalising a loan agreement.

Be genuine – How you conduct yourself in a negotiation will determine how seriously an owner and agent will take you. If you low-ball your bid, expect to be marked a time-waster by the seller's agent. Keep it real and stay in the game if you want the property.