First home buyers make the same handful of mistakes, year after year. None of them come from carelessness; they come from not knowing how lending actually works. Here are the seven that cost the most, with the fix for each.
1. Trusting one bank’s answer
The first "no", or a low borrowing figure, is one lender’s policy, not the market’s verdict. Assessments differ by hundreds of thousands. Fix: compare policy across lenders before concluding anything. See how much can I borrow.
2. Waiting for the full 20% deposit
While you save the last 10%, prices often grow faster than your savings. The Home Guarantee Scheme, guarantor options and any-occupation LMI waivers all get you in earlier. Fix: read how much deposit you really need.
3. Leaving scheme money on the table
Grants, duty exemptions and the super saver scheme can stack into a five-figure head start, but nobody applies them for you automatically. Fix: check every scheme you can claim before you set your budget.
4. Forgetting the other costs
Conveyancing, inspections, insurance and moving costs land on top of the deposit. Fix: budget with the full cost list, not just the price.
5. New debts at the worst moment
A car loan or a few BNPL accounts opened during house hunting can cut capacity right when you need it. Lenders re-check before settlement. Fix: freeze new credit from the day you start looking.
6. Maxing the pre-approval
Your maximum is what a lender will approve, not what leaves room to live. Fix: set your own repayment ceiling at a rate 2% higher, and shop below it.
7. Going it alone
None of the above requires you to become a mortgage expert; it requires having one. A broker costs you nothing and carries a legal duty to act in your best interests. Start with a free call, ideally months before you want to buy.