Cold Feet? Here's What First-Time Home Buyers Should Really Be Doing Right Now
A recent report from The Guardian confirmed something we're seeing every week in our own conversations with clients: first home buyers are getting cold feet. Prices are cooling in some pockets, competition is easing, yet buyers aren't rushing back in. If anything, many are more hesitant than ever.
As a broker, that tells me one thing. This isn't really a "market confidence" problem. It's a "borrowing confidence" problem.
Rising costs are doing more than delaying the dream
Recent rate rises have made borrowing capacity harder for many buyers, with the average new loan rate now above 6%. So even when a property is more affordable on paper, the loan behind it often isn't. That gap between what people hoped to buy and what the bank will lend is exactly why so many are choosing to wait rather than move.
Waiting isn't always the safest option
We understand the instinct to sit tight until things feel more certain. But markets rarely send a clear "go" signal. Buyers who wait for perfect conditions often end up competing again once confidence returns and prices firm up. The smarter move is usually to get finance-ready now, so you can act when the right property comes along, not scramble after it.
Government schemes help, but they're not the whole answer
Schemes like the Home Guarantee Scheme can reduce the deposit hurdle, but they don't fix serviceability, rate comparisons, or how a lender views your overall position. That's where a broker earns their keep, matching the right scheme with the right loan structure for your situation.
What you should focus on
- Know your real borrowing power before you fall for a property. It's often different to what a bank's online calculator suggests.
- Review lenders, not just rates. Servicing buffers and policies vary more than people expect right now.
- Build a deposit and repayment plan that holds up even if rates move again.
- Get pre-approval sorted early, so you're not making decisions under pressure.
If you'd like to see how this applies to your own numbers, our First Home Buyer guide and borrowing capacity calculator are good starting points.
Market uncertainty doesn't have to mean standing still. With the right finance plan, it can actually be your window of opportunity.
Ready to make your move? For tailored advice or to talk through your buying strategy, contact KM Financial Service. Call us on 0402 879 531 or book a free consultation today. We're here to guide you through it and help you secure the right property on the right terms.
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