Even experienced buyers can make costly missteps. Here’s how to avoid the top traps in 2025.
Mistake #1: Focusing Only on the Lowest Rate
Many buyers fixate on getting the lowest possible interest rate. While important, it’s just one piece of the puzzle.
Why it’s a mistake: The cheapest rate may come with limited flexibility, high fees, or conditions that don’t suit your future goals.
Tip: Look at the comparison rate, not just the headline rate, and consider loan features like offset accounts or redraw facilities.
Mistake #2: Ignoring Loan Fees
Application fees, annual fees, and even early repayment penalties can add thousands over time.
Tip: Balance any upfront or ongoing costs against the benefits — and factor these into your loan comparisons.
Mistake #3: Overestimating Borrowing Power
Just because a lender approves a certain amount doesn’t mean it’s wise to borrow to the limit.
Tip: Base your budget on comfortable repayments, not just the maximum loan amount.
Mistake #4: Skipping Pre-Approval
Without pre-approval, your bargaining power is limited, and you risk delays or disappointment.
Tip: Always get pre-approved before house hunting — especially in fast-moving markets.
Mistake #5: Not Reviewing Your Loan Regularly
Your mortgage shouldn’t be a “set and forget” decision. Even a small rate reduction or refinance could save thousands.
Tip: Review your home loan every 1–2 years or when your circumstances change.
Avoid These Mistakes: Take the Next Step
Use our Borrowing Power Calculator to understand what you can safely afford.
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