7 First Home Buyer Mistakes to Avoid in Adelaide

By Jason Given · 2026-08-14 · 7 min read

Mistake 1: Not getting pre-approved before searching

This is the most common and most costly mistake first home buyers make. Without pre-approval, you are guessing your budget. You might think you can borrow $550,000, but the bank says $480,000. Or you might be able to borrow more than you expected. Either way, you are searching blind.

Without pre-approval, you waste weekends inspecting properties you cannot afford. You spend months building an emotional connection to a price bracket that was never realistic. And when you finally find the right property, you cannot move fast enough - someone else with pre-approval in hand makes an offer and gets it while you are still waiting for the bank to assess your application.

In a competitive Adelaide market, speed matters. Agents and vendors take pre-approved buyers more seriously because they know the finance is already in progress. It signals that you are organised, committed, and ready to move.

Pre-approval takes 2-3 business days with Lendology. It costs nothing. It does not commit you to anything. But it gives you a clear budget, a defined search range, and the ability to act fast when the right property comes along. Do this first, before you attend a single open inspection.

Mistake 2: Only talking to your bank

Your bank has one set of products, one credit policy, and one way of assessing your borrowing capacity. If you only speak to your bank, you are seeing one slice of a very large market.

Lendology compares 60+ lenders - and each one assesses borrowing capacity differently. The difference between lenders can be $50,000-$100,000 in borrowing capacity for the same borrower with the same income and the same deposit. That is not a rounding error. That is the difference between buying in the suburb you want and settling for somewhere further out.

Some lenders treat overtime, bonuses, and rental income more favourably than others. Some have more flexible policies for casual employment or contract work. Some offer better rates for first home buyers specifically. Your bank will never tell you about a competitor that could lend you more or charge you less.

A broker costs you nothing - we are paid by the lender, not by you. You get access to the full market, an honest comparison, and someone whose job is to find you the best deal. There is no downside.

Mistake 3: Forgetting the costs beyond the deposit

First home buyers budget for the deposit but forget about everything else. Stamp duty, conveyancing fees, building and pest inspections, loan application fees, moving costs, utility connections - these add up fast.

On a typical Adelaide first home purchase, these additional costs can add $8,000-$15,000+ on top of your deposit. If you have not planned for them, they can catch you off guard right when you need every dollar to be accounted for.

The good news is that first home buyers in South Australia may be eligible for stamp duty concessions or exemptions, depending on the purchase price. But even with concessions, the other costs still apply. Plan for them from the start so they do not derail your purchase at settlement.

We have put together a full breakdown of what to expect - read our guide to first home buyer settlement costs in Adelaide for the complete picture.

Mistake 4: Stretching to your absolute maximum

Your maximum borrowing capacity is what the bank will lend you, not what you should borrow. These are two very different numbers, and confusing them is one of the fastest ways to end up in financial stress.

Interest rates can rise. Income can change. Cars break down. Unexpected medical bills come out of nowhere. Life has a way of presenting expenses you did not see coming. If your repayments are already at the absolute limit of what you can manage, there is no room for any of this.

Borrow with a buffer. Aim for repayments you can comfortably manage even if interest rates rise by 1-2%. This does not mean buying a worse property - it means being realistic about what comfortable ownership looks like, not just what the bank will technically approve.

Lendology stress-tests your repayments at higher rates before recommending a loan amount. We want you to buy well and still sleep at night.

Mistake 5: Skipping the building and pest inspection

A $500 building and pest inspection can save you $50,000+ in hidden structural problems. It is one of the best investments you will make during the buying process, and yet many first home buyers skip it to save money or because they feel pressured to move quickly.

Termite damage, rising damp, roof defects, non-compliant renovations, asbestos, faulty electrical work - these are common in older Adelaide suburbs. They are not always visible during an open inspection. A qualified building inspector knows what to look for and where to find it.

Always get a building and pest inspection before going unconditional on a contract. If issues are found, you have options. You can negotiate the purchase price down to account for the cost of repairs. You can ask the seller to fix the issue before settlement. Or you can walk away during the cooling-off period without significant penalty.

Skipping the inspection to save $500 and then discovering $30,000 worth of termite damage after settlement is not a saving. It is a disaster.

Mistake 6: Making big purchases before settlement

You have been approved for your home loan. Settlement is a few weeks away. You start shopping for furniture, maybe a new car to go with the new house. You put it on a credit card or take out a personal loan. This is one of the most dangerous mistakes a first home buyer can make.

Lenders reassess your financial position before settlement. They check your credit file again. They look for new debts. Any new credit - a car loan, a furniture package on Afterpay, a credit card increase - reduces your borrowing capacity. In some cases, it can reduce it enough to put your loan approval at risk.

Wait until after settlement day to make any significant purchases or take on new credit. Once the loan has settled and the property is in your name, you are in a much safer position. Until then, keep your finances exactly as they were when you were approved.

Mistake 7: Not understanding the contract

The contract of sale is a legal document with real consequences. It is not a formality. Every clause, condition, and date in that contract matters - and getting something wrong can cost you thousands or lock you into an obligation you did not fully understand.

In South Australia, cooling-off periods are 2 business days for private treaty sales. At auction, there is no cooling-off period - when the hammer falls, you are legally committed. If you are buying at auction, your finance and due diligence need to be completed before auction day, not after.

Finance clauses protect you if your loan is not approved. They give you the right to withdraw from the contract without losing your deposit. But the wording matters - a poorly drafted finance clause can leave gaps that do not protect you the way you think they do. Make sure yours is worded correctly and covers the right timeframes.

Special conditions, inclusions (what stays and what goes), settlement dates, deposit amounts - all of these need to be reviewed by your conveyancer before you sign. Never sign a contract without having it reviewed by a professional. The cost of a conveyancer's review is negligible compared to the cost of getting it wrong.