Introduction
Entering the property market for the first time can be exhilarating, but missteps can be costly. With house prices high and government incentives evolving, 2026 first home buyers need to be diligent. This guide highlights common mistakes and how to avoid them so your home buying journey is smooth.
Mistake 1: Buying Before Understanding Borrowing Power
Failing to understand your borrowing capacity can lead to disappointment. Lenders assess your income, expenses and debts to determine how much they are willing to lend. Use the borrowing power calculators to estimate how much you can borrow and talk to a broker for guidance. Skipping this step may result in falling in love with a property you cannot finance.
Mistake 2: Underestimating Ongoing Costs
The purchase price is only the start; there are council rates, strata levies, insurance and maintenance costs to consider. Many buyers focus on the deposit but forget about these ongoing obligations. ASIC’s guidance on buying property outlines typical property expenses. Budgeting for them from the outset will help you choose a home you can afford long term.
Mistake 3: Choosing the Wrong Loan Structure
Not all home loans are created equal. You might be tempted by the lowest headline rate, but the structure (fixed vs variable, offset accounts, redraw facilities) matters. A home loan pre -approval can help you explore options and find a loan tailored to your needs. Avoid signing up to a loan without understanding how repayments might change if interest rates rise.
Mistake 4: Rushing the Property Decision
Pressure to get into the market can lead to rushed decisions. Skipping building and pest inspections, ignoring neighbourhood research or letting emotions override due diligence can cost thousands. Take time to inspect the property, compare comparable sales and seek professional advice. Patience can mean the difference between a wise investment and a regretful purchase. For official resources, check the Australian Government first home buyer support.
Mistake 5: Not Getting Advice Early Enough
Trying to navigate the process alone can be overwhelming. A good mortgage broker and solicitor can provide invaluable guidance on finance and contracts. Our First Home Buyers and Home Loans pages explain the process, and you can Talk to Zippy Financial early on to ensure you’re on track. Seeking advice too late may limit your options or lead to higher costs.
Conclusion
Avoiding these mistakes can save you time, money and stress. Understand your borrowing power, budget for ongoing costs, choose the right loan structure, do thorough research and seek advice early. That way you’ll enter the market confidently in 2026. This article provides general information only and does not constitute personal financial advice.