Key Takeaways

• Don’t guess your budget – use exact borrowing numbers, not vibes
• Get pre-approval before you start house-hunting – or risk wasting your weekends
• Never skip inspections – no matter how cute the house is
• You can negotiate, you’re allowed – agents hope you won’t
• You don’t need to know everything – Homebuyer Help gives it to you straight
• Don’t rely on one lender or agent – comparison isn’t betrayal
• You are not annoying for asking questions – ask 50 if you need
• Buying without reading contracts? Stop that.

1. Saying “I think I can afford it” instead of actually knowing

It’s wild how many people say “I reckon I can borrow around $600k” based on… nothing? A guy at the gym? What their mate said two years ago?

Have a free chat with a mortgage broker, they'll to tell you. But – do it before you start going to opens and getting emotionally attached to homes that are $150k over your limit.

Also: your repayments matter just as much as what you can borrow. A bank might say yes, but can you afford $3,600/month if interest rates go up again? Do some math. Seriously.

• Don’t base your budget on guesswork
• Use a mortgage broker
• Double check repayments under different rates

2. Not using Homebuyer Help when you're literally the exact person it's for

If you're buying your first home and haven’t used Homebuyer Help yet, what are you doing?

It’s:

• Free
• No ads
• No paywalls
• Built by someone who got burned himself

And it breaks down the whole process into actual steps, not fluffy advice like “just manifest your dream home.”

You get the full roadmap: grants, deposits, bank tricks, the best order to do stuff, and the mistakes that you’re probably making (like the ones in this article).

3. Falling for the “you better act fast” line

Here’s how it goes:

Agent: “This one’s getting a lot of interest. You’ll have to move quickly.”

You: Heart rate goes up. Brain goes off. You offer full asking price on a house you saw 40 minutes ago and now you’re broke.

No.
You are allowed to walk away. There are always more homes. Agents want pressure because it works. But unless you’ve done inspections, had a conveyancer check the contract, and know it’s priced right – you don’t have enough info to offer.

Ask yourself:

• Did I inspect the property properly?
• Has a lawyer reviewed the contract?
• Have I compared this price with similar recent sales?

If not: chill.

4. Skipping inspections because “it looks fine”

Oh yeah? It looks fine? Great. So do Tinder dates. That doesn’t mean they aren’t hiding something massive under the surface.

Building and pest inspections are not optional. Not even for new builds. Especially not for new builds, actually.

Here’s what one inspector found last month:

So yeah. Spend $500–$600 and avoid a disaster.

5. Thinking you can’t negotiate

You can. You should. People do it every day.

But most first-home buyers think asking for a price drop, or better terms, will make them seem rude. It won’t. It’ll just make you smarter than 90% of buyers.

Negotiation doesn’t mean shouting. It means:

• Asking for repairs before settlement
• Offering less than asking price (with a reason)
• Setting your own settlement terms
• Getting clauses added to protect you, not just the seller

If you don’t ask, you get nothing.

6. Not reading the contract (or getting someone who can)

If you sign a contract you don’t understand, that’s your fault. Doesn’t matter if it’s 75 pages of legal waffle. The seller’s not going to help you if things go sideways.

Get a conveyancer. No exceptions.

Your conveyancer will check:

• Cooling-off periods
• Special conditions
• Who’s paying what
• Hidden fees or costs
• Dispute clauses

And they’ll flag anything that could screw you later.

7. Thinking a 5% deposit is enough

Sure, some banks will let you get in with 5%, or even less with a guarantor. But it’s a trap for a lot of people.

Why?

• You’ll probably pay LMI (Lender’s Mortgage Insurance) – which can be tens of thousands
• Your repayments are way higher
• One interest rate rise and you’re stretched thin (that happened to me🥲)
• You won’t have cash left for moving, furniture, council rates, etc. (this also happened to me haha)

If you’re barely scraping together 5%, pause. Rent a little longer. Save a bit more.

8. Trusting one broker or bank without doing your own homework

Brokers are helpful, but they’re not all angels. Some only work with certain lenders, or don’t show you the lowest rates available.

If you’ve spoken to one broker or bank and decided “yep, this is it” – you’re probably missing out.

Compare:

• Interest rates
• Ongoing fees
• Offset/redraw features
• Approval times
• Customer service reviews

Don’t assume the first deal you’re offered is the best. Most of the time, it isn’t. This is why we have put in hundreds of hours vetting mortgage brokers around Australia to help you get infront of the right person for the job.

Frequently Asked Questions: Common Mistakes First-Time Buyers Make

How much deposit should I save to avoid LMI?
Usually 20% of the purchase price. If you’ve got less than that, most banks charge LMI unless you qualify for a government scheme. This is not always gospel as many of you reading will get away with a 5 - 10%. just be mindful of the extra fees involved for low deposit home loans.

Can I negotiate price on a house even if it’s listed as “offers over”?
Yes. "Offers over" is a trick to start a bidding war. You can still offer less, or make a conditional offer.

Do I need a conveyancer?
Techically no, but yes mate. Get a conveyancer.

What grants are available for first-home buyers in Australia?
It depends on your state. Homebuyer Help lists the grants and stamp duty concessions you might be eligible for, based on location and price.

How can I avoid buying the wrong house?
Do inspections, get legal review, and use tools like Homebuyer Help to avoid missing key steps.