5 Big Mistakes First-Home Buyers Make (And How to Avoid Them)
May 07, 2025 at 11:54 AM
Here are 5 big mistakes we often see first-home buyers make—and what you can do instead.
Mistake #1: Not Getting Pre-Approved First
Why it’s a problem:
If you start house hunting without a pre-approval, you don’t know how much you can actually spend. You might fall in love with a house that’s out of your budget.
What to do:
Talk to a mortgage adviser early. We’ll help you figure out what banks will lend you—and get you a pre-approval so you can shop with confidence.
Mistake #2: Forgetting About Extra Costs
Why it’s a problem:
The house price isn’t the only thing you’ll pay. There are other costs like:
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Lawyer fees
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Builders’ reports
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Insurance
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LIM reports
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Moving costs
What to do:
Make a list of all possible costs so there are no surprises. We help clients plan for all of these in advance.
Mistake #3: Only Talking to Your Bank
Why it’s a problem:
Your bank might not offer the best deal or have a one size fits all approach. They only tell you about their own rates or what they can approve —not what other banks can offer.
What to do:
A mortgage adviser compares lots of lenders for you. You might get a better rate, more flexibility, or a cash bonus just by choosing a different lender.
Mistake #4: Not Reading the Fine Print
Why it’s a problem:
The Sale and Purchase Agreement is a legal contract. If you sign without understanding it, you could agree to something risky.
What to do:
Work with a lawyer or adviser who can explain the key parts.
Mistake #5: Choosing the Wrong Loan Type
Why it’s a problem:
There are different types of loans: fixed, floating, interest-only, and more. Picking the wrong one could cost you more in the long run.
What to do:
Let’s talk about your goals. We’ll help you choose a loan that fits your budget now and works well for your future.
Final Thoughts: You Don’t Have to Do This Alone
Buying your first home doesn’t need to be stressful. The key is getting good advice from people who do this every day. That’s where we come in.
Want help with pre-approval or understanding the home buying process?
Get in touch—we’d love to help you feel confident and prepared.