I purchased my first home in February 2008 with my soon to be wife. It was not long after I proposed, and we were both saving like mad to pay for a wedding and a home deposit. We had simple finances and I knew how important it was to seek a loan pre-approval.

I listened to the advice of experienced home-owners/family who suggested I get pre-approved for close to my maximum, as that would give me more firepower, should I need it to secure the right property.

It goes against intuition to go for the maximum, as most clients are naturally cautious when making big decisions, however, the bigger game plan was to buy a property that would last, something that would be suitable down the track for a small family.

If you buy a home that is just right for now, but can't handle future plans (children), then you are likely to have to sell the property within 3-5 years and upgrade, whereas if you buy a bigger home, you only have to pay the stamp duty and mortgage insurance once.

Fast forward to today and we are still in the same home, although now looking to knock down and rebuild to fit our family needs.