Top Tips for First Home Buyers
Buying your first home is exciting, but preparation is key. These practical tips will help you avoid common mistakes and put you in the strongest possible position before you buy.
1. Know What You Can Borrow (Before You Start Looking)
Before attending inspections or falling in love with a property, understand your borrowing power. Online calculators can be misleading, so speaking with a mortgage broker early gives you a realistic budget based on lender criteria.
This helps you shop with confidence and avoid disappointment later.
2. Understand the True Cost of Buying
Your deposit isn’t the only cost involved in buying a home. Make sure you budget for:
- Stamp duty (if applicable)
- Legal and conveyancing fees
- Building and pest inspections
- Loan application or settlement costs
- Moving expenses
A broker can help you factor these into your plan from the start.
3. Don’t Assume You Need a 20% Deposit
Many first home buyers believe they must save a 20% deposit, but this isn’t always the case. Depending on your situation, you may be eligible to buy with a smaller deposit through government schemes or lender options.
The right advice can help you enter the market sooner.
4. Get Pre-Approval Before Making Offers
Pre-approval gives you confidence when negotiating and shows sellers you’re serious. It also helps prevent delays or issues once you’ve found the right property.
A mortgage broker ensures your pre-approval is structured correctly and aligned with lender requirements.
5. Think Beyond the Interest Rate
The lowest interest rate isn’t always the best loan. Consider:
- Fees and charges
- Offset accounts
- Extra repayment flexibility
- Fixed vs variable options
Choosing the right features now can save you money and stress long term.
6. Avoid Making Big Financial Changes
Once you’re preparing to buy, avoid changing jobs, taking out new loans, or making large purchases like cars or furniture. These changes can affect your borrowing capacity or delay approval.
7. Get Expert Advice Early
One of the biggest mistakes first home buyers make is waiting too long to seek advice. Speaking with a mortgage broker early helps you plan, avoid mistakes, and buy with confidence.
