Avoid these common mortgage mistakes

What are some common mortgage mistakes that first-home buyers make? Learn how to avoid them with these expert tips.

Transcript

00:00 Here are five mistakes experts say you should avoid if you're lucky enough to be a first home buyer.

00:06 Number one, other loans.

00:09 Applying for a car or personal loan before a home loan can drastically reduce your borrowing capacity.

00:17 Number two, not sticking to a budget. Take a look at your maximum borrowing capacity,

00:23 expected repayments, and make a strict budget before making any offers.

00:29 Number three,

00:31 underestimating the total cost of buying a home.

00:34 Consider the hidden costs and read the fine print as this one can sting.

00:39 Beyond the cost of the property you may have stamp duty, council rates, insurance, pest inspections,

00:47 strata fees, legal costs,

00:49 transferring fees, moving costs, and a home loan deposit.

00:55 Number four, not getting your pre-approval sorted. Before making an offer or home deposit,

01:02 be sure to get your bank or lender to tentatively approve the loan amount for your home.

01:08 Number five, head over heart.

01:11 Buying your first house can be emotional, but don't get tricked into paying more than it's worth.

01:17 Create a non-negotiable list of what you want, like location, price, and bedrooms, for guidance along the way.

01:25 [Silence]

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