5 Mistakes First Home Buyers Should Avoid in Australia (2025 Guide)
Buying your first home is one of the biggest financial decisions you’ll ever make — and the process can be overwhelming if you’re not prepared. As a mortgage broker helping first home buyers every day, I’ve seen many people make simple mistakes that cost them time, money, and borrowing power.
Here are the top 5 mistakes first home buyers should avoid in 2025, plus what you can do instead.
1. Not Getting Pre-Approved Before House Hunting
Many first home buyers start attending open homes before organising their finance.
The problem? You might fall in love with a property you can’t comfortably afford — or miss out on one because you weren’t ready to make an offer.
✔ What to do instead:
Get a home loan pre-approval.
It shows sellers you’re serious and gives you a clear budget to work with.
2. Not Knowing All the Upfront Costs
Buying a property involves more than just your deposit. Many first home buyers forget about things like:
- Stamp duty (unless exempt)
- Mortgage registration fees
- Legal and conveyancing costs
- Building & pest inspections
- LMI (Lenders Mortgage Insurance)
- Moving costs
- Council rates adjustments
✔ What to do instead:
Speak to a broker early so you know the true full cost of buying.
3. Only Speaking to One Bank
Every bank has different lending policies, interest rates, and deposit requirements.
If you walk into your own bank and accept the first offer, you might be overpaying.
✔ What to do instead:
Work with a mortgage broker who compares 30+ lenders to find the best deal for your situation.
4. Thinking You Need a 20% Deposit
This is one of the biggest myths for first home buyers.
Today, many lenders offer loans with:
- 5% deposit
- 2% deposit (under certain schemes)
- No LMI options for eligible buyers
- Government programs like FHBG & FHOG
✔ What to do instead:
Ask a broker what your low-deposit options are. You may be closer to owning a home than you think.
5. Ignoring Government Grants & Schemes
In 2025, there are multiple grants that can save first home buyers thousands, depending on your state.
Yet many buyers don’t realise they qualify.
You may be eligible for:
- First Home Guarantee
- First Home Owner Grant (FHOG)
- Stamp duty concessions
- Family Home Guarantee
- Regional First Home Buyer Support
✔ What to do instead:
Get your eligibility checked before you buy — you might unlock thousands in savings.
🏡 Final Thoughts
Buying your first home doesn’t have to be stressful. Avoiding these common mistakes can save you tens of thousands of dollars and help you enter the market sooner.
If you want personalised guidance or need help understanding your borrowing power, we’re here to help.
📞 Need Help Buying Your First Home?
Kickstart Finance Group
📱 0422 905 666
📧 info@kickstartfinancegroup.com.au
🌐 www.kickstartfinancegroup.com.au