First-Time Buyer Advice from a VIC Mortgage Broker

Purchasing your initial property in Melbourne can feel both exciting. As professional mortgage brokers serving the Melbourne market, we've helped thousands of first-time buyers realise their property dreams. This guide shares our top strategies to help you understand the process with clarity.

1. Understand Your Borrowing Capacity

Before viewing properties, get a realistic idea of what you can afford:

Get Pre-Approved: This demonstrates your maximum loan amount

Factor in All Costs: Remember legal fees

Use Online Calculators: But consult a broker for personalised figures

Consider Future Changes: Account for interest rate rises

2. Prepare Your Deposit Wisely

A strong deposit improves your options:

Aim for 20%: Avoid Lenders Mortgage Insurance (typically required below 20%)

Explore Schemes: First Home tarneit loan broker Deposit Scheme may help

Genuine Savings: Most lenders want 3-6 months of consistent savings

Gift Deposits: Some lenders accept family gifts with documentation

3. Study Melbourne's Property Market

Local knowledge is power:

Suburb Profiles: Compare growth projections across neighbourhoods

First Home Buyer Hotspots: Look for up-and-coming areas with good infrastructure

Auction vs Private Sale: Understand the strategies for each

Property Types: Consider houses based on your long-term plans

4. Organise Your Financial Documents

Being prepared speeds up approval:

Standard Requirements: 3 months payslips, 2 years tax returns, ID documents

Special Cases: Self-employed need ATO notices

Credit History: Check your report beforehand

Explain Large Deposits: Be ready to document unusual transactions

5. Choose the Right Home Loan

Key considerations for first-timers:

Fixed vs Variable: Stability trade-offs

Loan Features: Offset accounts, redraw facilities, etc.

Comparison Rate: Looks beyond the advertised rate

Future Flexibility: Consider top-up options

6. Understand Government Incentives

Melbourne first-home buyers may access:

First Home Owner Grant: $10,000 for off-the-plan homes under $750,000

Stamp Duty Concessions: Potential reductions for properties under $600,000

Shared Equity Schemes: Victorian government equity sharing programs

Super Saver Scheme:Withdraw voluntary super contributions for your deposit

7. Engage the Right Professionals

Your support team matters:

Mortgage Broker: Finds competitive loans tailored to your situation

Conveyancer: Handles contract aspects

Building Inspector: Identifies structural problems

Buyer's Agent: Can help in competitive markets (optional)

8. Avoid Common First-Time Mistakes

Frequent pitfalls we see:

Overextending Budget:Leave breathing room for rate rises

Changing Jobs: Lenders prefer stable employment

New Credit Applications: Avoid personal loans during the process

Emotional Decisions: Don't compromise due to FOMO

9. Prepare for the Long Term

Think beyond purchase day:

Repayment Strategy: Consider weekly payments to save interest

Future Needs: Will the property suit you in 5 years?

Investment Potential: Even if it's not your forever home

Exit Strategy: Understand costs if you need to move sooner than planned

10. Leverage Professional Mortgage Advice

Why our Victorian clients value broker guidance:

Pre-Approval Precision: We know which lenders are supportive

Application Polish: Present your finances in the best light

Ongoing Support: We're here post-settlement

Market Insights: Share local lender preferences

First Home Buyer FAQs

1. How much deposit do I really need in Melbourne?

While 5% is possible, 20% avoids LMI. With grants, some buyers achieve 5-10%.

2. What's the typical first home price in Melbourne?

Varies by area - currently $500,000-$700,000 for first-home properties.

3. How long does the approval take?

Pre-approval in 24-48 hours, full approval typically 2-4 weeks.

4. Can I buy with family as first-timers?

Yes! co-ownership are common with proper documentation.

5. Should I wait to save more or buy now?

Depends on your situation - we can run scenarios for you.

Final Thoughts

Purchasing your first home in Melbourne is an achievable goal with the right guidance. By following these strategies from local mortgage brokers, you'll be well-prepared to:

Understand the complex property market

Secure financing that matches your circumstances

Avoid common first-time buyer mistakes

Make informed decisions about your future

Remember - every happy homeowner was once a first-time buyer. With patience and these insights, you'll be holding your title documents before you know it!

Ready to begin your first home journey? Contact our Victorian mortgage broker team today for obligation-free advice.