By Ramesh Kandel – Mortgage Broker & Director, Rayz Financial Services
Buying your first home is one of life’s biggest achievements. But in the excitement, many first-home buyers in Australia make costly mistakes—some that can delay their journey, and others that could cost thousands.
At Rayz Financial Services, we’ve helped hundreds of first-home buyers avoid these traps and make smart, confident decisions.
1. Not Getting a Home Loan Pre-Approval
Starting your property search without pre-approval is risky. Many buyers fall in love with a home, only to find out later they can’t get the loan approved—or can’t borrow as much as they thought.
Rayz Tip: Get home loan pre-approval before you start house hunting. It gives you clarity on your budget and makes you a stronger buyer.
2. Underestimating the True Costs of Buying a Home
Saving for the deposit is only the beginning. Many first-home buyers overlook additional costs like:
- Stamp duty
- Legal and conveyancing fees
- Building and pest inspections
- Lenders Mortgage Insurance (LMI)
- Utility connections and moving expenses
Rayz Tip: We help you build a full cost estimate so you’re financially ready from day one.
3. Missing Out on First Home Buyer Grants and Schemes
Australia has several grants and schemes designed to help first-home buyers—but many miss out due to lack of awareness or incorrect applications.
- First Home Guarantee (FHBG)
- First Home Owner Grant (FHOG)
- Stamp Duty Concessions
- First Home Super Saver Scheme
Rayz Tip: We’ll assess your eligibility and handle the paperwork to help you access every dollar you’re entitled to.
4. Choosing the Wrong Type of Home Loan
Many first-home buyers focus only on interest rates without considering the loan’s features and flexibility.
- Offset accounts
- Redraw facilities
- Fixed vs variable rates
- Exit fees and portability
Rayz Tip: We compare over 30 lenders to find the right loan structure for your needs.
5. Borrowing to the Maximum Limit
Just because the bank says you can borrow a certain amount doesn’t mean you should. Overstretching can cause financial pressure.
Rayz Tip: We help you determine a realistic and sustainable budget.
6. Letting Emotions Take Over
Emotion-led decisions often result in overpaying or rushing into the wrong property.
Rayz Tip: We offer independent advice so you can buy with clarity and confidence.
7. Going Straight to a Bank Instead of a Mortgage Broker
Banks only offer their own products, which may not be the best fit.
Rayz Tip: As brokers, we work for you—not the banks—and compare over 30 lenders to get the best result.
Final Thoughts
Buying your first home doesn’t have to be overwhelming. With expert guidance and a clear plan, you can avoid these 7 mistakes and make smarter choices.
📍 Get in Touch:
Ramesh Kandel
Mortgage Broker & Director – Rayz Financial Services
🌐 www.rayz.com.au
📧 ramesh@rayz.com.au
📞 0451 065 166 | 02 6106 9988
📍 Based in Canberra | Serving clients Australia-wide
