Buying your first home is supposed to be one of life’s most exciting milestones — a symbol of independence, stability, and a place to truly call your own. But for many first home buyers, that dream can quickly turn into a nightmare if they’re not properly prepared.
As a mortgage broker, I’ve seen it all — the heartbreak, the panic, the costly mistakes. So if you're a first home buyer (or know someone who is), here's what you really need to watch out for to avoid your first home turning into your biggest regret.
1. Falling in Love with the Wrong Property
The excitement of open homes and online listings can cloud your judgement fast. Many buyers fall in love with a place emotionally and ignore the red flags: poor location, structural issues, unapproved renovations, or overpricing.
Nightmare scenario: You stretch your budget to buy that “dream home,” only to find out later it needs $40,000 worth of repairs — and it's nowhere near public transport or decent schools.
Tip: Get an independent building and pest inspection. Look beyond the surface and think long-term — is this home really aligned with your lifestyle and future plans?
2. Not Understanding the Real Costs
A lot of buyers focus only on the deposit and purchase price. But the true cost of buying a home includes stamp duty, legal fees, loan application costs, building insurance, inspections, and moving expenses — and that’s before your first mortgage repayment.
Nightmare scenario: You drain your savings for the deposit and suddenly can’t afford to furnish the home, let alone handle an unexpected repair.
Tip: Budget for at least 5–7% extra on top of the purchase price, and keep an emergency buffer. A good broker will help you map it all out before you sign a contract.
3. Loan Pre-Approval That Falls Through
You think you're good to go because the bank gave you a “pre-approval.” You make an offer. It's accepted. Then the bank pulls the plug last minute due to valuation issues, job changes, or credit concerns.
Nightmare scenario: You’re legally bound to buy the property, but you don’t have the finance to settle. You lose your deposit — or worse, get sued.
Tip: Make sure your pre-approval is fully assessed and up-to-date. Work closely with a broker who understands how to present your application to avoid any red flags.
4. Underestimating Lifestyle Impact
Owning a home means responsibility. You can’t just call a landlord if something breaks. On top of mortgage repayments, you’re also juggling rates, utilities, maintenance and insurance.
Nightmare scenario: You spend your weekends fixing leaking taps and patching up walls while your friends are enjoying life. Mortgage stress kicks in, and you start to regret buying.
Tip: Be realistic about what you can handle. Consider whether the home suits your lifestyle — or whether it’s better to start with a townhouse or apartment before moving up.
5. Rushing Into the Wrong Loan
The wrong loan structure can cost you tens of thousands in the long run. Some buyers rush into a loan with a high interest rate, or get stuck with features they don’t use and fees they don’t understand.
Nightmare scenario: You’re paying more each month than you need to, and refinancing is harder than expected.
Tip: Work with a broker who takes the time to understand your situation and future plans. Not all loans are equal — and choosing the right one is just as important as choosing the right property.
Final Thoughts
Buying your first home should feel like a dream come true — not a financial horror story. The good news? With the right advice, preparation, and guidance, these nightmares are 100% avoidable.
If you're a first home buyer and want to make sure you're doing it right from day one, reach out. Let’s turn your dream into a smart, secure investment in your future.
Need help as a first home buyer?
At Zahr Financial, we specialise in helping first home buyers avoid costly mistakes and get into the market with confidence.
👉 Book a free strategy session — no pressure, just real guidance.
