Top 8 First Home Buyer Mistakes and How FIFO Workers Can Avoid Them

Understanding Your Borrowing Capacity

As a FIFO mobile plant operator, your income structure is different from the average nine-to-five worker. Many first-time home buyers make the mistake of not properly understanding their borrowing capacity before they start house hunting. Your FIFO salary, including allowances and overtime, can actually work in your favour when applying for a home loan.

The key is working with lenders who understand the FIFO industry. Banks and lenders nationwide have different approaches to FIFO income, and some are more accommodating than others. Don't assume your borrowing capacity is limited – with the right approach, you might be surprised by the loan amount you can access.

Mistake #1: Not Getting Pre-Approved

One of the biggest mistakes first-time home buyers make is falling in love with a property before getting pre-approved. When you're on rotation and have limited time to inspect properties, this mistake can be costly. Getting pre-approved gives you:

• Clear understanding of your budget
• Stronger position when making offers
• Confidence at auctions
• Ability to move quickly on the right property

The streamlined application process with experienced mortgage brokers means you can get pre-approved even while you're on site.

Mistake #2: Ignoring Government Benefits and Schemes

Many FIFO workers miss out on valuable first time home buyer programs because they don't know what's available. The Home Guarantee Scheme can help you buy your first home with as little as 5% deposit, avoiding lenders mortgage insurance (LMI). Additionally, first home owner grants (FHOG) can provide thousands of dollars towards your purchase.

Each state has different schemes and stamp duty concessions. These benefits can save you tens of thousands of dollars, but only if you know about them and meet the eligibility criteria.

Mistake #3: Focusing Only on Interest Rates

While interest rate is important, it's not the only factor to consider when choosing a home loan. Many first-time buyers get caught up in comparing variable interest rate versus fixed interest rate options without looking at the bigger picture.

Consider these factors alongside interest rates:

• Offset account options to reduce interest
• Interest rate discounts for professional packages
• Annual fees and ongoing costs
• Flexibility for extra repayments
• Access to redraw facilities

Mistake #4: Not Shopping Around for Lenders

Many first-time buyers simply walk into their existing bank without exploring other options. As a FIFO worker, you have access to home loan options from banks and lenders across Australia, each with different lending criteria and benefits.

Some lenders specialise in FIFO applications and understand your employment structure better than others. They might offer more favourable loan to value ratio (LVR) terms or be more flexible with bank statements and income verification.

Mistake #5: Underestimating Total Purchase Costs

Buying your first home involves more than just the purchase price. Many buyers focus solely on saving for a deposit and forget about additional costs:

• Stamp duty (varies by state)
• Building and pest inspections
• Legal fees and conveyancing
• Loan application fees
• Moving costs
• Immediate maintenance or renovations

These costs can add up to tens of thousands of dollars beyond your deposit.

Mistake #6: Poor Financial Preparation

Your financial situation needs to be in order well before you apply for a home loan. The application process requires extensive documentation, and FIFO workers need to be particularly organised with their paperwork.

Start preparing months in advance by:

• Keeping detailed records of your FIFO income
• Maintaining consistent savings patterns
• Reducing unnecessary expenses
• Paying down existing debts
• Avoiding new credit applications

Mistake #7: Rushing the Property Search

The property market can feel intense, especially when you have limited time between rotations. However, rushing into a purchase without proper research is a costly mistake. Take time to understand:

• Local market conditions
• Property growth potential
• Infrastructure developments
• Schools and amenities (if relevant)
• Transport links

Mistake #8: Not Considering Future Investment Options

Many FIFO workers are in strong financial positions to consider investment properties down the road. When buying your first home, think about how this might affect future investment loan options. Some loan structures are more flexible for adding investment loan applications later.

Discussing investment loan options early doesn't mean you need to invest immediately, but understanding your options helps with long-term financial planning.

Working with FIFO Specialists

The application process for FIFO workers requires understanding of your unique employment situation. Mortgage brokers who specialise in the FIFO industry can access to banks and lenders nationwide and know which ones are most FIFO-friendly.

They can help you avoid these common mistakes and structure your first home loan to suit your rotation schedule and income patterns. Whether you're looking at your first home loan or considering your first investment property down the track, getting the right advice from the start makes all the difference.

Call one of our team or book an appointment at a time that works for you – even while you're on rotation.