Avoid These 6 Mistakes First-Time Buyers Make

Missing the Tasmanian Concessions That Ended in June

The full stamp duty exemption on established homes that applied until 30 June has ended. From 1 July 2026, the Tasmanian First Home Owner Grant is $20,000 for new homes only, subject to assent. The prior grant was $30,000, and the duty exemption on established homes up to $750,000 no longer exists under current law. If you are buying an existing property in Hobart or Launceston, you now pay standard transfer duty. If you are building or buying new, the grant still applies, but the value has dropped by a third.

Consider someone purchasing a new townhouse in Glenorchy. They can still claim the $20,000 grant if the contract is signed after 1 July and the property meets the eligibility criteria. If that same person buys an established home in the same suburb, no grant applies and full duty is payable. The difference in upfront cost could exceed $25,000. That shifts the affordability calculation for many Ambulance Tasmania employees looking to buy within commuting distance of the Hobart station.

If you signed a contract before 30 June, the previous rules apply. If you are signing now, you need to know which concessions are still operative and which have lapsed. The state schemes change regularly, and what applied six months ago may not apply today.

Using a 5% Deposit Without Checking LMI Waivers First

The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit, with Housing Australia guaranteeing the difference up to 20% of the property value. No income caps apply, and no lenders mortgage insurance is payable. That makes it a viable option for many paramedics and ambulance officers.

But most lenders also offer LMI waivers for paramedics on deposits as low as 10%. If you have a 10% deposit, the waiver route may give you access to a broader panel of lenders, more product choice, and potentially lower ongoing rates. The 5% Deposit Scheme is administered through a panel of 31 lenders, and not all offer the same pricing or features. If you go straight to the scheme without comparing, you may end up with a higher rate or fewer offset and redraw options than you would have accessed with a slightly larger deposit and an LMI waiver.

In our experience, Ambulance Tasmania employees with a 10% deposit saved through salary sacrifice or family contributions often secure better loan structures by using the waiver instead of the scheme. The scheme is essential if you only have 5%, but it should not be your default assumption if you can reach 10%.

Applying Without Pre-Approval and Losing the Property

Pre-approval gives you a conditional commitment from a lender based on your income, expenses, and credit position. It does not lock in a property, but it does confirm your borrowing capacity before you make an offer. Without it, you are bidding or negotiating with no certainty that a lender will support the purchase price.

We regularly see this in the Hobart market, where stock is limited and properties move quickly. Someone finds a unit in Sandy Bay or a house in Rokeby, makes an offer subject to finance, and then discovers during the formal application that their capacity is lower than expected or that the lender requires additional documentation they do not have. The vendor moves to the next buyer, and the opportunity is gone.

Getting loan pre-approval takes one to three days if your documentation is in order. It gives you a borrowing range, confirms your deposit position, and identifies any issues with credit or employment verification before you commit to a contract. For shift workers with overtime or allowances, it also clarifies how much of your income will be recognised by the lender, which varies significantly between institutions.

Choosing a Fixed Rate Based on Headlines Instead of Your Roster

A fixed interest rate locks your repayment for a set term, usually one to five years. It provides certainty, but it also removes flexibility. If you make extra repayments above a capped amount, or if you want to redraw funds, most fixed loans either prohibit it or charge break fees.

Ambulance Tasmania rosters vary. Some employees work consistent blocks. Others pick up additional shifts or move between stations depending on demand. If your income fluctuates and you want the ability to park surplus cash in an offset account or redraw it for vehicle repairs or relocation costs, a variable interest rate with full offset and redraw access may be more practical than a fixed rate that penalises flexibility.

You can split your loan, fixing part for certainty and leaving part variable for access. That structure works well when your income includes a stable base plus variable overtime. The fixed portion covers your minimum repayment, and the variable portion absorbs the extra contributions without restriction. Choosing a loan structure based on what the rate is today, rather than how your income and expenses move across the year, is a common and costly error.

Budgeting for the Loan Repayment but Not the Settlement Costs

Your deposit is not the only upfront cost. Settlement costs include conveyancing, building and pest inspections, lender application fees, government registration fees, and potentially valuation fees. On a property purchase, these costs typically add $8,000 to $12,000 to the amount you need in cleared funds before settlement.

If you are buying with a 5% or 10% deposit, that entire amount is already committed to the property. Settlement costs must come from separate savings, or they must be added to the loan if the lender allows it and you still fall within your borrowing limit. Many first-time buyers focus only on the deposit figure and arrive at settlement unable to cover the additional costs without scrambling for a last-minute family gift or personal loan.

Tasmanian property transactions also involve duty where applicable, and while some concessions remain for new builds, the removal of the established home exemption means buyers need to factor duty back into their budget if they are purchasing an older property. If you are unsure of the full cost breakdown, get a settlement estimate from your conveyancer before you sign the contract, not the week before settlement.

Ignoring Offset Accounts Because You Think They Are Only for Investors

An offset account is a transaction account linked to your home loan. The balance in the offset reduces the interest charged on the loan without requiring you to make extra repayments. If you have a $400,000 loan and $15,000 sitting in an offset account, you only pay interest on $385,000. The funds remain accessible, and you can withdraw them at any time without penalty.

This is not just useful for investors. Ambulance Tasmania employees often accumulate leave balances, receive back-paid pay rises, or have irregular bonus payments. If you deposit those funds into an offset account instead of a regular savings account, you reduce your loan interest immediately. If you need the funds later for a vehicle upgrade, a course, or an emergency, you withdraw them without needing lender approval or paying redraw fees.

Not all lenders offer offset accounts on every product, and some charge a higher interest rate or annual fee for the feature. But if you are comparing two loans with similar rates and one includes a full offset, that feature can save you thousands over the life of the loan, particularly in the first five years when your loan balance is highest and your offset has the greatest impact. Dismissing it as an investor-only feature means you leave that saving on the table.

Call one of our team or book an appointment at a time that works for you. We work with Ambulance Tasmania employees across the state and can structure your home loan application around your roster, your deposit, and the concessions still available in Tasmania.

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