Buying Your First Home: 7 Mistakes NZ Buyers Make (and How to Avoid Them)

Buying your first home in New Zealand is an exciting step — but it can also be overwhelming. Many first-home buyers rush into the process without fully understanding the pitfalls, which can lead to costly mistakes. The good news? With the right preparation, you can avoid these common traps and approach your purchase with confidence.

Here are seven of the most common mistakes Kiwi buyers make — and how you can sidestep them.

1. Skipping Pre-Approval

The mistake: Falling in love with a house before knowing what you can afford.
The fix: Get a mortgage pre-approval before you start house hunting. This gives you a clear budget, strengthens your offers, and saves you heartache if the bank won’t lend as much as you hoped.

2. Not Factoring in the Hidden Costs

The mistake: Budgeting for the deposit but forgetting about legal fees, LIM reports, valuations, and moving costs.
The fix: Build a “true cost” budget. Plan for 1–2% of the purchase price in additional costs so there are no surprises on settlement day.

3. Overstretching the Budget

The mistake: Bidding to your absolute limit and leaving no room for interest rate rises or emergencies.
The fix: Borrow less than the maximum the bank offers. Keep a buffer for rate hikes, repairs, and unexpected life events.

4. Ignoring KiwiSaver and Other Support Options

The mistake: Leaving money on the table by not using KiwiSaver or exploring shared-ownership or First Home Loan options.
The fix: Speak with a mortgage adviser early. They can guide you through KiwiSaver withdrawals and other schemes that could boost your deposit and make you a more competitive buyer.

5. Failing to Do Due Diligence

The mistake: Skipping building inspections or rushing through the LIM report.
The fix: Always get professional checks done, even on newer homes. A $500 inspection can save you thousands in repair costs down the line.

6. Letting Emotions Drive Decisions

The mistake: Overbidding in the heat of an auction or buying just because you’re tired of renting.
The fix: Stick to your budget and your “must-have” list. If you miss out on one property, remember there will always be another.

7. Going It Alone

The mistake: Trying to figure everything out yourself.
The fix: Surround yourself with a good team — a mortgage adviser, lawyer, and building inspector. Their expertise can save you money and stress.

Final Thoughts

Buying your first home is one of the biggest financial decisions you’ll ever make. By avoiding these seven mistakes, you’ll reduce stress, stay on budget, and secure a home that truly fits your lifestyle.

I can help you navigate every step — from pre-approval to settlement — so you can focus on finding a place you love.