The hidden side of home loan regret
Buying a first home excites thousands of Australians each year, but new research shows many regret the loan they chose.
The Mortgage Choice Home Loan Report surveyed 1,000 Australians and revealed striking results.
One in three borrowers needed at least five years to save their deposit.
More than half later admitted they wished they had researched more before signing their first loan.
Nearly two-thirds believed they probably missed out on a better deal.
The irony is clear: buyers spend years budgeting and planning, only to make snap decisions about the loan that follows them for decades.
Common mistakes first time borrowers make
Assuming all loans are the same
Many buyers believe a loan is simply a loan, but the differences run deep.
Some loans offer flexible repayments, redraw facilities, or offset accounts.
Others carry hidden fees, strict conditions, or penalties for early repayment.
Treating all loans as identical is like assuming every car drives the same because it has four wheels.
Obsessing over interest rates alone
Most buyers focus on the interest rate first, yet this narrow view can cost them.
A slightly higher rate loan with an offset account could save more in the long term.
Some low-rate loans include high fees or restrictive terms.
Rates change, but loan features stay.
Failing to plan for the future
A loan that fits today may not fit tomorrow.
Changes in family size, income, or lifestyle can quickly make a loan unsuitable.
Without planning for flexibility, borrowers risk being locked into deals that no longer serve them.
How to avoid home loan regret
Get advice early
Borrowers who wait until they find a property often rush their loan choice.
Speaking to a broker early provides knowledge and confidence long before purchase.
Pre-approval ensures buyers know their limits and can negotiate with certainty.
Know your borrowing power
Borrowing power varies widely between lenders.
Bank A may approve $550,000 while Bank B offers only $480,000.
Government grants, savings, or gifted deposits can all influence the final figure.
A broker helps compare lenders to maximize borrowing potential.
Look beyond the rate
Loan features often matter more than the percentage figure.
Offset accounts reduce interest by linking savings directly to the loan.
Redraw facilities allow flexible repayments and emergency access.
Fixed, variable, or split loans each suit different lifestyles and risk tolerances.
Match the loan to your life plan
A home loan is a decades-long partner.
Borrowers must ask whether stability, flexibility, or repayment freedom matters most.
The right loan should align with financial habits and future goals.
Why emotions matter
Buying a home is emotional, and urgency often drives rushed loan decisions.
While houses may be sold or upgraded, loans can last 20 to 30 years.
Clear planning helps prevent emotional choices from becoming financial mistakes.
The bottom line
Australians spend years saving for a deposit, yet many still regret their first loan.
The key is preparation: seek advice early, understand borrowing power, and study loan features carefully.
A loan chosen wisely accelerates financial freedom, while a poor choice traps borrowers in decades of debt.
