10 Things First-Time Home Buyers Always Forget — Plus a Smart Government Trick

Buying your first home is super exciting — but there are a lot of little things that first-home buyers often forget. Here are 10 of them, explained simply. And at the end, I’ll show you a not-so-secret trick that makes it way easier to get started.

1. It Costs More Than Just the House Price

You don’t just pay for the house. There are more costs:

• Money for the home loan fees

• A government fee called “stamp duty”

• Moving costs

• Repairs, or buying furniture

2. How Much You Can Actually Borrow Matters

Just because a bank says you can borrow a lot doesn’t mean you should borrow all of it. Think about:

• What you earn every month

• Other bills you pay

• How much you want to save

3. You Need a Deposit

To buy a house, banks usually want you to put down a deposit. This is a percentage of the house price saved as cash.

4. Getting Pre‑Approval Helps

Pre‑approval means the bank checks how much they think you can borrow — before you pick a house. This helps because you’ll know what houses are actually possible for you.

5. There Are Ongoing Costs After You Move In

Once you own the house, you need to pay:

• Electricity, water, and gas bills

• Property rates (like a neighborhood tax)

• Home insurance

• Internet

6. Check the Home’s Condition Carefully

Some homes look good, but need major repairs. It’s smart to check:

• The roof

• The plumbing

• Electrical systems

• Heating or air‑conditioning

Getting a building inspection can save you big surprises later.

7. Location Isn’t Just About Looks

Where the home is matters a lot:

• Are there good schools nearby?

• Can you get to shops or public transport easily?

• Is it a quiet and safe neighborhood?

Good location helps you enjoy your home more — and may help its value go up.

8. Think About Your Future Plans

Ask yourself:

• Will you need more rooms later?

• Might you move for work?

• Do you want a bigger backyard?

If you forget to plan ahead, your “perfect first home” might not be perfect for long.

9. There Are Government Schemes to Help — Use Them

Right now in Australia, there’s a Home Guarantee Scheme (also called the 5% Deposit Scheme) where first-home buyers only need to save 5% of the home’s value as a deposit. Housing Australia

Because of this scheme:

• You don’t need to save so much before buying First Home Buyers

• There’s no Lenders’ Mortgage Insurance (LMI) to pay — that’s a big cost for many buyers.

Example for a $1,000,000 house:

• If the house costs $1,000,000, a 5% deposit would be $50,000.

• You’d only need to save that much — instead of a much bigger deposit — thanks to the scheme.

One big cost when buying a house is stamp duty (a tax you pay when you buy). But in many states, first-home buyers get help — and sometimes they pay no stamp duty at all, depending on the state and the price.

✨ Updated 2025–2026 First‑Home Buyer Stamp Duty Thresholds

Why This Matters — And How It All Fits Together

Putting together the 5% deposit scheme and stamp duty help can be a game changer:

1. Lower Barrier to Entry
   You don’t need massive savings. That 5% deposit scheme + stamp duty help means you can buy with less cash upfront.

2. Big Cost Savings
   Avoiding or reducing stamp duty saves thousands or tens of thousands of dollars — money that could go toward mortgage payments, renovations, or even investing.

3. Better Cash Flow
   Less money spent on tax + less needed for deposit = more money left over each month. You can use that money to pay off your mortgage faster or do other important things.

4. Smart Long-Term Thinking
   With property, you’re not just paying for a place to live — you could be building wealth. Your house might grow in value, and the money you “save” now helps you later.

10. Know How Home Loans Work

A home loan isn’t just “borrow money, pay it back.” You need to understand:

• Interest rates — how much extra you pay for borrowing

• Loan term — how long it takes to pay it back

• Fixed vs variable rates — whether your monthly payment stays the same or can change

Bonus Trick: Let the Market Do Some of the Heavy Lifting

Here’s a smart trick many people forget: investing in property can actually help you pay off your own home loan faster. Here’s how:

• With the 5% Deposit Scheme, you only need to put in a small amount of your own money.

• You can borrow the rest of what you need.

• Over time, your property (or another property you invest in) can go up in value — or even make money if someone rents it.

• That growth (and possibly rent) can help your wealth grow, and can make it easier for you to pay down your mortgage quicker.

This works because of compounding returns — where the money you make starts making more money for you. So, letting the property “do the work” can be one of the fastest ways to build your future.

Real Example: How Much You Save with a $1 Million Home

Let’s say you’re buying a $1,000,000 home and using the 5% Deposit Scheme, plus you live in a state with a stamp duty exemption or concession — here’s how much it might cost you just for the deposit:

• 5% deposit on $1,000,000 = $50,000.

• If you’re in a state with a stamp duty exemption (and you’re eligible), you might pay $0 stamp duty — meaning no extra big tax at the time of purchase (but always check your state’s latest rules).

Final Thought

Buying your first home doesn’t have to feel impossible. Real people are using the 5% Deposit Scheme — and combining it with stamp duty help — to make home ownership happen sooner.
If you know these tricks, planning carefully, and thinking about your future, you can turn your “maybe one day” dream into “right now.”