Mistake 1: Not Getting Pre-Approval First
You fall in love with a house at auction, make an offer, and then discover the bank won't lend you enough. Solution: Get pre-approval before you start viewing properties. It costs nothing and tells you exactly what you can afford.
Mistake 2: Ignoring the Extra Costs
Many first home buyers only save for the deposit, forgetting solicitor fees, building reports, LIM reports, insurance, and moving costs. Solution: Budget $3,000–$5,000 on top of your deposit for these expenses.
Mistake 3: Buying at Auction Without a Fixed Budget
Auction rooms are emotional. Without a firm limit, it's easy to overbid. Solution: Set your maximum price before the auction and stick to it. Remember: the auctioneer works for the seller.
Mistake 4: Skipping the Builder's Report
An unconditional auction purchase means you waive the right to a building inspection. That $700 report could save you from a $50,000 leaky home disaster. Solution: Get a pre-purchase building inspection before auction, or make your offer conditional on one.
Mistake 5: Not Understanding KiwiSaver Rules
Some buyers assume they can withdraw their entire KiwiSaver balance — but the Government Contribution must stay. Others don't realise they need the 3-year rule. Solution: Check with your KiwiSaver provider or Kāinga Ora early in the process.
Mistake 6: Overlooking the LIM Report
The LIM report tells you about flooding risks, unconsented work, zoning changes, and earthquake hazards. Skipping it is a gamble. Solution: Always get a LIM report and have your solicitor review it.
Mistake 7: Forgetting About Insurance
Your bank won't settle without home insurance. If the property is in a high-risk area (e.g., flood zone, earthquake-prone), insurance can be hard to get. Solution: Check insurance availability before you go unconditional.
Mistake 8: Being Too Picky (or Not Picky Enough)
Some buyers wait years for the "perfect" home. Others buy the first place they see. Solution: Know your must-haves vs nice-to-haves. Aim for a home that's "good enough" in a location you love.
Mistake 9: Not Shopping Around for a Mortgage
Many first home buyers go straight to the bank they've always banked with. Different lenders offer different rates and features. Solution: Use a mortgage broker — they're free and compare multiple lenders for you.
Mistake 10: Underestimating Ongoing Costs
Homeownership costs go beyond the mortgage. Rates, insurance, maintenance, and body corporate fees (if applicable) add up. Solution: Budget 1–2% of the property value per year for maintenance, plus annual rates and insurance.
Bonus Tip: Use a Good Solicitor
Your solicitor is your most important ally. Choose one who specialises in property law and has experience with first home buyers. A bad solicitor can cost you dearly.