First Home Buyers: Things to Watch Out For Before You Buy
Buying your first home is exciting — but it’s also easy to overlook important details when everything feels new. Many first home buyers make mistakes not because they’re careless, but because they simply don’t know what to watch out for.
Here are some key things to be mindful of before, during, and after buying your first home.
Overestimating What You Can Borrow
Online calculators often paint an overly optimistic picture. They don’t account for lender-specific policies, spending habits, or interest rate buffers.
If you stretch too far, repayments can quickly become uncomfortable. Getting a realistic borrowing figure early helps you buy with confidence, not pressure.
Focusing Only on the Purchase Price
The price of the property is just one part of the cost. Many first home buyers are caught off guard by additional expenses.
These can include:
- Stamp duty (if applicable)
- Legal and conveyancing fees
- Building and pest inspections
- Moving costs
- Ongoing expenses like rates and maintenance
Assuming You Need a 20% Deposit
While a 20% deposit can be helpful, it’s not always required. Waiting years to save more may mean missing opportunities that are available now.
Understanding low-deposit options and government schemes can help you enter the market sooner — without unnecessary delay.
Making Big Financial Changes Too Soon
Changing jobs, buying a car, or taking on new debt during the buying process can impact your loan approval.
Even positive changes can cause delays. It’s best to keep your financial situation stable until settlement is complete.
Falling in Love Before Getting Pre-Approval
It’s easy to emotionally commit to a property before confirming your budget. Without pre-approval, you risk disappointment or rushed decisions.
Pre-approval keeps your expectations aligned with reality and strengthens your negotiating position.
Ignoring Loan Features and Fees
The lowest interest rate isn’t always the best loan. Fees, restrictions, and lack of flexibility can cost more over time.
Make sure you understand:
- Ongoing fees
- Offset account options
- Extra repayment flexibility
- Fixed vs variable loan conditions
Skipping Building and Pest Inspections
Skipping inspections to save money can lead to expensive surprises later. Structural issues or pests can cost thousands to fix after settlement.
Inspections are a small upfront cost for long-term peace of mind.
Trying to Do Everything Alone
One of the biggest risks for first home buyers is not seeking advice early. Buying property involves lenders, contracts, and legal obligations — and it’s not something you need to navigate alone.
Having the right professionals involved can save time, money, and stress.
Want Help Avoiding These Common Pitfalls?
A quick conversation can help you understand what to watch out for based on your situation and how to avoid costly mistakes.
