This is the number one mistake. Most first home buyers spend weeks, sometimes months, looking at properties before finding out what they can actually afford. Then they either fall in love with something out of reach, or discover the bank will lend them far less than expected.
Wasted months, emotional heartbreak, and starting over.
Run our free borrowing power calculator first. It takes 2 minutes and gives you a real number, not a bank estimate designed to maximise their lending.
Your bank can only show you their own products. A mortgage broker compares 30+ lenders and finds rates your bank will never offer you. Yet most first home buyers call their bank first out of habit, and often pay for it over the life of their loan.
Paying a higher rate than necessary for 30 years.
Use a mortgage broker. The service is completely free to you, brokers are paid by lenders. NestPath connects you with brokers who specialise in first home buyers.
Forgetting hidden costs, and getting blindsided at settlement
Critical
Stamp duty alone can add $20,000 to $30,000 to your purchase cost. Then there's conveyancing, building inspections, title transfer fees, insurance, moving costs and immediate repairs. Most first home buyers budget for the deposit and nothing else.
Running out of money at or after settlement.
Our calculator shows your true purchase costs, every fee, every charge, nothing hidden. Run it before you start looking at properties.
70% of Australian properties have at least one defect. Most are minor, but some are not. Buyers who skip the inspection to save $600 have discovered $40,000 in repairs after settlement. And once you settle, those repairs are entirely your problem.
Inheriting someone else's expensive problems.
Always make your offer conditional on a satisfactory building and pest inspection for private sales. For auctions, book the inspection before auction day, once the hammer falls you own every defect.
Not knowing about grants and schemes you qualify for
High risk
The First Home Guarantee lets you buy with just 5% deposit and zero LMI, saving up to $30,000. The FHSS Scheme lets couples withdraw up to $100,000 from super for a deposit. Most first home buyers have never heard of either. Some discover them after they've already bought.
Leaving tens of thousands of dollars on the table.
Check which grants and schemes you qualify for, it takes less than a minute and could change everything about your timeline.
Buying a car on finance. Opening a new credit card. Changing jobs. Any of these between pre-approval and settlement can cause your loan to fall through, even after your offer has been accepted. Banks re-assess your position before releasing funds.
Losing your deposit and your dream property.
Keep your finances completely stable between pre-approval and settlement. No new debts, no new credit applications, no job changes. Your broker will tell you exactly what to avoid.
Buying without understanding cooling off periods in your state
Watch out
Cooling off periods vary dramatically by state. In WA and TAS there is no cooling off period at all. Once you sign, you're locked in. In NSW you get 5 business days. In VIC, just 3. And auctions in every state have no cooling off period whatsoever.
Signing a contract you cannot escape.
Know your state's rules before you make an offer. NestPath shows you the exact cooling off rules for your state in the journey tracker.
Arranging insurance on settlement day, not exchange day
Watch out
From the moment contracts are exchanged, the property is legally your risk in most states. If the house burns down between exchange and settlement, it's your loss, not the seller's. Your lender won't release funds without proof of insurance. Most buyers discover this far too late.
Being uninsured for weeks without knowing it.
Arrange building insurance from exchange day, not settlement day. In QLD it's even earlier: property risk transfers the day after signing the contract.
