We’ve now seen a couple of first home buyers in Raymond Terrace get caught out by this exact issue, and it can be a costly lesson.
Buying your first home is exciting, but it’s also one of those times where small misunderstandings can turn into big, unexpected expenses. Recently, we had a buyer receive financial advice that didn’t clearly explain how the relevant caps and extra costs worked. He thought he was covered, only to find out later that offering over the threshold would cost him thousands more than expected.
That is not the kind of surprise any first home buyer wants after already stretching themselves to get into the market.
One of the biggest problems is that buyers often hear about “the first home buyer scheme” as though it is one thing, when in reality there can be multiple schemes, different eligibility rules, and different price thresholds depending on what support you are relying on.
For example, some buyers are focused on saving a 5% deposit and avoiding Lenders Mortgage Insurance, while others are looking at stamp duty concessions. Both can be incredibly helpful, but they do not work the same way. Once you start getting close to the cap, even going a little over can change the numbers quickly.
That’s where people get caught.
It is not always the purchase price alone that causes the issue. It is the extra costs that can flow from it. You may suddenly be up for transfer duty you were not expecting, a reduced concession instead of a full exemption, or LMI and lending costs you thought you had avoided.
When buyers are already budgeting tightly, that can be the difference between moving forward confidently and scrambling to cover a shortfall.
So what should first home buyers do before making an offer?
First, ask exactly which schemes you qualify for. Do not assume that because you are a first home buyer, every concession automatically applies.
Second, ask your broker or lender to clearly set out what happens if you offer above the threshold. Not just “roughly” or “you should be fine,” but actual figures.
Third, double-check the numbers yourself with your conveyancer, solicitor, or a trusted adviser. A quick review before signing can save a very expensive surprise later.
The reality is, first home buying is hard enough without unclear advice making it harder. If you are shopping close to a cap, those details matter. A lot.
At Dowling Property Raymond Terrace, we are seeing more buyers run into this, especially when they are purchasing near the upper end of their budget. It is a reminder that understanding the full picture matters just as much as finding the right property.
A few extra questions upfront can save you a lot of stress and money later.
If you are unsure where you sit, reach out. We are always happy to point you in the right direction. 👉CONTACT OUR TEAM TODAY