New research from Money.com.au has revealed the most common regrets among first-home buyers when taking out their mortgage.
The survey found that paying too much in loan processing and ongoing fees was the most common mistake, cited by 22% of Aussie first-home buyers. This was followed by:
Smaller proportions regret locking in a bad fixed rate (6%) or taking the advice of parents or family on which loan to choose (6%).
The findings come as affordable housing markets are seeing stronger growth than typical properties, with government incentives and recent rate cuts fuelling first-home buyer demand – making the right loan choice more critical than ever.
The PropTrack CommBank First-Home Buyer Report 2025, meanwhile, found affordability remains a challenge, three cash rate cuts this year have reduced mortgage costs and improved access, with many buyers entering the market on deposits below 20%.
Money.com.au mortgage expert Debbie Hays (pictured) said many first-home buyers miss better deals by committing too quickly.
“Many first-time home buyers apply for a loan with the first lender they come across, often their existing bank or their parents’ bank,” Hays said.
“They haven’t yet built the habit of shopping around or getting advice from a broker. In that haste, they often overlook fees, loan features or whether the rate is even competitive. Once they catch their breath, they often realise they could have secured a better deal, or that the loan they chose doesn’t suit their long-term needs.
“That’s why we get a lot of first-home buyers refinancing within a year of getting their mortgage. By then, they’ve usually improved their loan-to-value ratio, gained experience with loan products and features, and become more assertive about what they want or don’t want from a lender. Many are also confident enough to haggle and push for establishment fees to be waived on their next loan.”
The survey also highlighted clear generational differences in mortgage regrets:
On a $600,000 mortgage over 30 years, even minor differences in rates and fees can translate into significant costs.
For example, a loan at 5.70% with $4,450 in fees over the term would cost borrowers $31,341 more than a 5.50% loan with lower lifetime fees of $350. The difference in monthly repayments is $76, with the higher-rate borrower paying $3,482 compared to $3,406 on the lower-rate loan.
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