The contract is signed and you have the keys. Now comes the part nobody explains — switching services, setting aside maintenance money, and surviving the jump from a construction loan to a standard mortgage.
The contract is signed, settlement is done, you have the keys. Most first home buyers then discover in week two that the electricity account still sits in the previous owner's name, the internet has not been connected, and nobody told them the waste bin day.
None of that is difficult to fix. All of it is avoidable if you do it in the right order.
Account setup: order matters
Utilities are switched in the account holder's name, and the transfer process takes days. If you settle on a Friday and assume you can turn on the gas that afternoon, you may spend a weekend without hot water.
| Service | Lead time | Start with | Cost to connect |
|---|---|---|---|
| Electricity | 1–5 business days | Existing meter, or new account with NMI | $0–$120 |
| Gas | 1–5 business days | Existing supply. New gas connections can take weeks and may need plumber work | $0–$150 |
| Water | 1–3 business days | Your local water authority | $0–$80 |
| Sewerage | Included with water | Local authority | Included |
| Internet | 3–20 business days | Check if NBN is available at the address before you commit | $0–$80 activation |
| Mobile | Instant | Check coverage for your specific rooms, not the suburb | Plan only |
| Bin collection | 1–3 days | Local council — each has a different bin day | $0 |
Internet is the one that catches people
If the property is not in an NBN area, your only options are a fixed wireless or satellite connection, which materially affects the monthly cost. Check the NBN address checker before you settle. If it needs a new installation, a technician appointment is required — that is another two-week delay, sometimes longer in regional areas.
What to set up before you move in
- Contents insurance. Not optional if you have a mortgage, and worth having regardless. Most home loan policies require it to be in place from the settlement date.
- Building insurance transfer. The seller's policy does not transfer to you. Your lender will require a policy in your name from the day you exchange.
- Council rates transfer. Rates are charged to whoever occupies the property. Confirm the start date so you are not billed for a period you did not live there.
- Mail redirection. Australia Post redirection holds for six months. Arrange it before you move so bank correspondence, government notices and rate notices reach you.
- Doctor, dentist, school, childcare. If you have moved districts, transfers and waitlists are longer than people expect. Start before settlement.
- Register with the electoral commission. Compulsory in most states. Free, takes two minutes, and skipping it leaves you legally unenrolled.
- Vehicle registration transfer to the new address, if relevant. Free in most states, but mandatory.
Your first-year budget
Owning costs roughly 2–3% of the property value per year in maintenance, insurance and running costs, on top of loan repayments. On a $700,000 home, that is $14,000–$21,000 per year before you have replaced anything.
The 1% rule, and why it matters
Set aside 1% of the property value every year
$7,000 a year on a $700,000 home, set aside monthly in a separate account, covers almost everything that will go wrong: a hot water system, a roof, a termite treatment, appliances failing. Owners who skip this are funding repairs out of emergency savings, which is how a $900 boiler becomes a $9,000 credit card problem.
Your first year is when this matters most, because deferred maintenance from the previous owner surfaces. Expect the following in the first six months, and plan for it rather than treating it as bad luck:
| Likely event | Typical cost | Can you prevent it? |
|---|---|---|
| Hot water system failure | $900–$1,800 | Partly — service it annually |
| Appliances (oven, fridge, dishwasher) | $600–$2,500 each | No — but age them in your reserve |
| Storm or tree damage | $500–$15,000 | Yes — check excess, trim trees you own |
| Termite inspection (annual) | $250–$450 | Yes — book it, don't wait |
| Roof repair from age | $3,000–$12,000 | No — age it in your reserve |
| White goods warranty expiring | $0–$800 | Yes — transfer manufacturer warranties at settlement |
Three things to do in your first fortnight
- Book a termite inspection and note the date. Most insurers and lenders will ask when it was last done. A regular inspection history is worth more than a single clean report.
- Find the property's service documentation — boiler manual, hot water system warranty, appliance warranties, any certificates. Transfer the warranties in writing. Manufacturers generally require this.
- Set up the 1% reserve account with an automatic monthly transfer. Do it before you spend anything else, because the alternative is financing a hot water system on a credit card at 22%.
Transferring to new lenders — the mortgage schedule shift
Many first home buyers took a construction or interest-only loan because that was what their income supported during the build. On settlement, the loan converts to principal and interest, which usually increases the repayment significantly.
Check this before you settle, not after
On an interest-only loan, a $600,000 balance at 6% costs roughly $376 per month. The same loan on principal and interest costs roughly $449. On a $800,000 balance that jump is $672 to $803. If you have been living on the lower figure, budget for the higher one from your very first payslip at the new property — and tell your broker before settlement so there is no surprise.
Your broker will contact you before settlement with the new repayment figure. Read it carefully. If the increase is more than you planned for, that is a conversation to have before settlement, because after settlement you have no leverage left.
We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.