What mistakes do first home buyers make with deposits?

Short answer: Forgetting extra costs, spending on cars, low-interest accounts, not tracking, borrowing for emergencies.

What this actually means in plain English

Common mistakes: forgetting extra costs, spending the deposit on a car, keeping it in a low-interest account, not tracking progress, and borrowing from the deposit for emergencies. The biggest mistake is giving up because it feels too hard. Small consistent saving works.

Key Facts

Forgetting lawyer fees, inspections, and moving costs
Large purchases (cars, holidays) drain deposits
Keeping deposit in checking account earns no interest
Not tracking progress leads to discouragement
Dipping into deposit for emergencies resets timeline

Example

Saved: $25,000

Spent On Car: -$8,000

New Total: $17,000

Setback: 6 months of saving lost

Lesson: Do not touch deposit for non-housing purchases

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