Buying Your First Home in Australia? Here’s What Most First Home Buyers Get Wrong

Written By Diandra Tilocca

By Diandra Tilocca— Founder & Lead Broker, The Finance Edit

If you’re trying to buy your first home right now, I know how overwhelming it can feel.

Everywhere you look, people are telling you:
“You need a 20% deposit.”
“Property prices are impossible.”
“Wait until rates come down.”

After more than 10 years working in banking and home lending, one thing I’ve learnt is this: many first home buyers are waiting far longer than they actually need to because they simply don’t understand what options are available to them.

That’s one of the reasons I created The Finance Edit — to help people cut through the noise and understand what’s realistically possible for their situation.

You Don’t Always Need a 20% Deposit

This is probably the biggest misconception I hear.

Many first home buyers are still able to enter the market with a smaller deposit than they think. In some cases, there may also be government initiatives or lender options available that can help reduce upfront costs.

Yes, borrowing with a smaller deposit can sometimes involve additional costs, but what many buyers don’t realise is that waiting years to save a full 20% deposit can also come at a cost if property prices continue rising during that time.

The right strategy depends entirely on your personal situation and long-term goals.

Borrowing Capacity Is About More Than Just Your Income

One of the biggest mistakes I see people make is relying solely on online borrowing calculators.

Lenders assess far more than just your salary.

Things like:

  • Credit card limits

  • Buy now, pay later accounts

  • Existing debts

  • Living expenses

  • HECS debt

  • Dependants

  • Overtime or bonus income

…can all impact your borrowing capacity differently depending on the lender.

This is where experience and understanding lender policy can make a huge difference.

The Cheapest Interest Rate Isn’t Always the Best Loan

I say this to clients all the time — a home loan should support your future goals, not just get you approved today.

The “best” loan is not always the one with the absolute lowest rate.

Depending on your situation, factors like:

  • Offset accounts

  • Flexibility for extra repayments

  • Future investment plans

  • Cash flow management

  • Fixed versus variable loan structure

…can all play an important role in setting you up properly from the beginning.

There May Be More Options Available Than You Think

Many first home buyers assume home ownership is completely out of reach before they’ve even explored their options properly.

Sometimes all it takes is:

  • Understanding your true borrowing capacity

  • Knowing which lenders suit your situation

  • Structuring your loan correctly

  • Having a strategy tailored to your goals

That’s why I focus heavily on education and strategy with my clients — not just chasing rates.

Final Thoughts

Buying your first home is one of the biggest financial decisions you’ll make, and it’s completely normal to feel unsure about where to start.

My goal with The Finance Edit is to help first home buyers feel informed, confident and supported throughout the process.

If you’re thinking about buying your first home and want to understand what may actually be possible for your situation, I’d love to help.

— Diandra Tilocca
Founder & Lead Broker
The Finance Edit

Diandra Tilocca