Buying your first home is exciting, but it can also be overwhelming. Many first home buyers in Australia end up paying more than they should because of a few common mistakes. Here are the top 5 mistakes you must avoid — and expert tips to help you save thousands.
Mistake 1: Not Budgeting Beyond the Purchase Price
Why it matters:
First-time buyers often forget about extra costs like stamp duty, legal fees, inspections, and lender fees. These can easily add up to tens of thousands of dollars.
Tip:
Use a loan calculator before making commitments and plan for at least 5–7% of your property’s price as additional costs.
Mistake 2: Ignoring Loan Comparisons
Why it matters:
Sticking to your existing bank might cost you a higher interest rate. Different lenders offer different products and rates.
Tip:
Always compare loans from multiple lenders — or better, use a mortgage broker who can do the heavy lifting for you.
Mistake 3: Overstretching Your Budget
Why it matters:
Buying the “dream home” can lead to financial stress if repayments eat up too much of your income.
Tip:
Aim to keep mortgage repayments under 30% of your income. Plan realistically, not emotionally.
Mistake 4: Not Understanding Loan Features
Why it matters:
Offset accounts, redraw facilities, and fixed vs variable rates can drastically impact long-term costs.
Tip:
Get advice from an expert to match the right features to your lifestyle and goals.
Mistake 5: Skipping Pre-Approval
Why it matters:
Without pre-approval, you may waste time on properties you can’t actually afford — or lose the property to a better-prepared buyer.
Tip:
Get pre-approval first, so you know exactly what your budget is before making offers.
Email us at: info@real-mortgage.com.au right away
Call us on 0470440347