8 mistakes first home buyers make — and how to avoid every one.

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.

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.

Stamp duty alone can add $20,000–$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.

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.

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.

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.

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.

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.