The 6 Biggest Mistakes First Home Buyers Make, And How to Avoid Them

Buying your first home is exciting but it can also be overwhelming. Between figuring out your budget, securing a loan, and navigating the property market, it's easy to make decisions that could cost you thousands in the long run.

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To help you get it right the first time, here are the 7 most common mistakes first home buyers make and how to avoid them.

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1. Skipping Pre-Approval

The Mistake:
Many buyers fall in love with a property, only to discover later that they can’t actually borrow enough to buy it. Without pre-approval, you’re essentially shopping blind.

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The Fix:
Get pre-approved before you start house hunting. This gives you a realistic idea of your budget and makes you a more attractive buyer when it’s time to make an offer.

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Expert Tip:
Pre-approval isn’t just about borrowing power, it also helps uncover any issues with your credit history or paperwork early in the process, giving you time to fix them.

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2. Overestimating Your Borrowing Capacity

The Mistake:
Just because a lender is willing to lend you a certain amount doesn’t mean you can comfortably afford it. Many buyers stretch their budget too far and feel the pinch later.

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The Fix:
Work with a broker to calculate repayments based on realistic lifestyle expenses, not just what a bank’s calculator says. Consider future changes too, like starting a family or interest rate rises.

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3. Forgetting About Upfront Costs

The Mistake:
Focusing only on the deposit and forgetting about other upfront expenses like stamp duty, lender’s mortgage insurance (LMI), conveyancing, building inspections, and moving costs.

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The Fix:
Create a full cost breakdown before committing. Your broker can help you estimate all the associated costs and factor them into your savings goal.

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4. Falling for the Wrong Property

The Mistake:
It’s easy to fall for a property that looks great but doesn’t align with your long-term goals or financial situation.

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The Fix:
Separate emotion from strategy. Think about things like resale potential, location growth, property condition and future lifestyle changes. Don’t rush just because the market feels hot.

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5. Not Comparing Home Loan Options

The Mistake:
Accepting the first offer from your current bank or going straight to a lender without shopping around can cost you thousands over the life of the loan.

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The Fix:
Work with a mortgage broker who can compare multiple lenders and help you find the right product, not just the cheapest rate, but one with features that match your needs.

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6. Going It Alone

The Mistake:
Trying to navigate the entire home buying and loan process without guidance can lead to missed opportunities, delays, or costly mistakes.

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The Fix:
Surround yourself with the right support team, a mortgage broker, buyer’s agent (if needed) and conveyancer. A broker especially can guide you from pre-approval to settlement and beyond.

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Expert Tip:
A good broker doesn’t just get you a loan, they act as your personal guide through the entire buying process, often helping you avoid pitfalls you didn’t even know existed.

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Wrapping Up

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Buying your first home doesn’t have to be stressful. By avoiding these common mistakes and surrounding yourself with the right advice, you’ll be well on your way to making smart, confident decisions.

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If you're ready to start your journey or want to make sure you're on the right track, reach out to the team, we’re here to simplify your home loan experience, one step at a time.

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