Things We Wish Every Borrower Knew Before Buying Their First Home
The advice we give our own family and friends before they purchase a property.
Buying your first home is exciting, emotional, and one of the biggest financial decisions you'll ever make. At Nexus Loans, we've helped hundreds of first home buyers navigate the process, and along the way we've noticed something...
Most people make the same mistakes.
Not because they haven't done their research—but because nobody has explained the process in plain English.
If we could sit down with every first home buyer before they started their journey, these are the things we'd want them to know.
1. You Don't Always Need a 20% Deposit
This is probably the biggest misconception we hear.
Many buyers delay purchasing for years because they believe they need to save a 20% deposit.
In reality, depending on your circumstances, you may be able to buy with a smaller deposit through government schemes, guarantor home loans, or other lender options.
The right strategy depends on your financial situation—not just a number.
2. Your Borrowing Capacity Isn't Your Budget
Just because a lender says you can borrow $900,000 doesn't mean you should.
Think about:
Your lifestyle.
Future family plans.
Holidays.
School fees.
Renovations.
Unexpected expenses.
Buying comfortably is often better than borrowing to your absolute maximum.
3. The Cheapest Interest Rate Isn't Always the Best Loan
A lower interest rate is great—but it shouldn't be the only thing you compare.
Ask yourself:
Does it have an offset account?
Can I make unlimited repayments?
Are there annual package fees?
Can I split my loan?
Will it suit me in five years?
The right loan should fit your goals—not just today's interest rate.
4. Buying a Home Costs More Than the Deposit
Many first home buyers budget for the deposit but forget about the other costs involved.
Depending on your purchase, you may also need to consider:
Stamp duty
Conveyancing fees
Building and pest inspections
Government fees
Home insurance
Moving costs
Utility connections
Planning ahead can help avoid unexpected surprises.
5. Don't Finance a New Car Before Applying
We see this more often than you'd think.
Someone gets excited about buying a home... then finances a new car a few months before applying.
That new loan could reduce your borrowing power.
If you're planning to buy soon, speak with your broker before taking on any new debt.
6. Don't Just Speak to One Bank
Every lender has different policies.
One bank may decline your application while another may approve it.
Some lenders are stronger for:
First home buyers
Self-employed borrowers
Guarantor loans
Construction loans
Investment lending
This is where working with an experienced mortgage broker can make a significant difference.
7. Get Advice Before You Find the Property
One of the biggest mistakes we see is buyers finding their dream home before understanding what they can comfortably afford.
Knowing your borrowing power early gives you confidence to:
Shop within your budget.
Make stronger offers.
Understand your repayments.
Act quickly when the right property becomes available.
8. Government Schemes Can Change Everything
Many buyers don't realise they may be eligible for government assistance.
Depending on your circumstances, there may be grants, guarantees, or stamp duty concessions available.
Understanding what's available before you buy could save you thousands.
9. Think About Your Future, Not Just Today
Ask yourself:
Will this home suit us in five years?
Could we start a family here?
Is there room to renovate?
Will we outgrow it?
Is the location right for our lifestyle?
Buying a home isn't just about today—it's about where life might take you next.
10. Buying a Home Should Be Exciting—Not Overwhelming
There are contracts to review, finance to organise, inspections to arrange, and decisions to make.
The process can feel overwhelming when you're doing it for the first time.
That's why having the right team around you makes such a difference.
At Nexus Loans, we're here to answer your questions, explain your options, and guide you through every step of the journey.
Our Biggest Piece of Advice?
Don't wait until you've found your dream home to start asking questions.
The earlier you seek advice, the more options you'll usually have.
Whether you're six months away or ready to buy tomorrow, we'd love to help you create a plan that works for you.
Ready to Buy Your First Home?
Book a free strategy session with Nexus Loans and let us help you understand your borrowing power, compare lenders, and build a personalised pathway to home ownership.
Because buying your first home should be exciting—not confusing.
