Buying your first home is one of life’s biggest milestones — and for many Australians, it can feel overwhelming. Between saving for a deposit, choosing the right property, and navigating lenders, there’s a lot to think about.

Unfortunately, first home buyers often make the same mistakes — which can cost them time, money, and unnecessary stress. The good news? These mistakes are easy to avoid with the right advice.

Here are seven common first home buyer mistakes in Australia, and what you can do instead.

1. Not Knowing Your Borrowing Power

Too many first home buyers fall in love with a property before checking how much they can actually borrow. Without pre-approval, you risk wasting time looking at homes you can’t afford — or worse, having a loan application rejected at the last minute.

How to get it right:
Speak to a broker early. Get a clear idea of your borrowing capacity, how much deposit you’ll need, and what your repayments will look like. This way, you can house-hunt with confidence.

2. Underestimating Extra Costs

It’s not just about the deposit. Many first home buyers forget to budget for stamp duty, legal fees, inspections, moving costs, and lender’s mortgage insurance (LMI).

How to get it right:
Use free calculators to estimate all costs upfront — and talk to your broker about ways to reduce or manage expenses, like using the First Home Owner Grant or stamp duty concessions where eligible.

3. Skipping Pre-Approval

House-hunting without pre-approval is risky. Sellers often prefer buyers who have finance pre-approved — and some won’t take you seriously if you don’t.

How to get it right:
Get a formal pre-approval from your lender before you start making offers. It gives you negotiating power and peace of mind that you’re shopping within your budget.

4. Ignoring Government Grants and Schemes

Many first home buyers miss out on grants, like the First Home Guarantee Scheme, because they don’t know they exist or don’t understand how to apply.

How to get it right:
Check what’s available in your state or territory. Schemes like the First Home Guarantee can help you buy with as little as five percent deposit — but you need to meet the eligibility criteria and apply through a participating lender.

5. Letting Emotions Drive the Purchase

It’s easy to get attached to a property — but buying with your heart instead of your head can lead to paying too much or overlooking problems.

How to get it right:
Always do thorough inspections, check local market values, and don’t rush. If you’re unsure, ask your broker or conveyancer for advice before signing anything.

6. Overstretching Your Budget

Many first home buyers push their budget to the limit — only to find themselves struggling when interest rates rise or unexpected costs appear.

How to get it right:
Be realistic about what you can afford. Factor in future rate rises and changes to your income or expenses. A good broker will help you stress-test your loan to make sure it’s manageable.

7. Not Getting Professional Help

Trying to do it all alone is stressful — and costly if you make mistakes. From confusing paperwork to negotiating with lenders, there’s a lot to navigate.

How to get it right:
Work with an experienced mortgage broker who understands first home buyers. A broker will compare lenders, explain the fine print, handle the paperwork, and make sure you’re getting the right deal for your situation.

Final Thoughts

Buying your first home should be exciting — not overwhelming. Avoiding these common mistakes can save you thousands of dollars and countless headaches.

At HR Mortgage & Finance, we specialise in helping first home buyers get it right, from that first chat to getting the keys in your hand.