Financial preparation mistakes
Common problems include overlooking living-cost changes, leaving credit-card limits open, taking new finance before settlement and failing to budget for rates, maintenance and insurance.
- Using every dollar as the deposit
- Ignoring purchasing costs
- Assuming future income will solve affordability
Loan and pre-approval mistakes
A pre-approval may expire or remain subject to conditions. Buyers can also focus on the advertised rate while overlooking fees, features, revert rates and loan flexibility.
Property and contract mistakes
Do not assume the lender valuation is a building inspection. Obtain appropriate legal advice and property checks, and understand auction or unconditional-offer risks.
Government support mistakes
Old articles may contain outdated thresholds. Confirm eligibility, property limits, deadlines and occupancy obligations with the official administrator before exchange.
Common questions
Questions first home buyers ask
What is the biggest first home buyer mistake?
Committing to a property before confirming a comfortable budget, available funds, contract risks and realistic finance pathway can create the most serious problems.
Should I borrow the maximum a lender offers?
Not automatically. A lender assessment and your comfortable household budget answer different questions. Consider future repayments, expenses and financial buffers.
Is the lowest interest rate always the best home loan?
No. Fees, features, restrictions, comparison rates and suitability for your plans all affect the overall value of a loan.