First Home Buyer Advice from a Melbourne Mortgage Broker

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

1. Understand Your Borrowing Capacity

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

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• Get Pre-Approved: This shows your maximum loan amount
  
• Factor in All Costs: Remember legal fees
  
• Use Online Calculators: But consult a broker for accurate figures
  
• Consider Future Changes: Account for life events
  

2. Save Your Deposit Wisely

A substantial deposit improves your position:

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• Aim for 20%: Avoid Lenders Mortgage Insurance (typically required below 20%)
  
• Explore Schemes: Victorian Homebuyer Fund may help
  
• Genuine Savings: Most lenders want 3-6 months of regular savings
  
• Gift Deposits: Some lenders accept family gifts with documentation
  

3. Study Melbourne's Property Market

Area-specific knowledge is power:

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• 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 differences for each
  
• Property Types: Consider houses based on your budget
  

4. Prepare Your Financial Documents

Being organised speeds up approval:

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• 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. Select the Right Home Loan

Key considerations for first-timers:

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• Fixed vs Variable: Flexibility trade-offs
  
• Loan Features: Offset accounts, redraw facilities, etc.
  
• Comparison Rate: Looks beyond the headline rate
  
• Future Flexibility: Consider portability options
  

6. Know Government Incentives

Melbourne first-home buyers may access:

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• First Home Owner Grant: $10,000 for off-the-plan homes under $750,000
  
• Stamp Duty Concessions: Potential exemptions for properties under $600,000
  
• Shared Equity Schemes: Victorian government equity sharing programs
  
• Super Saver Scheme: Withdraw voluntary super contributions for your deposit
  

7. Work With the Right Professionals

Your support team matters:

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• Mortgage Broker: Finds competitive loans suited to your situation
  
• Conveyancer: Handles legal aspects
  
• Building Inspector: Identifies potential issues
  
• Buyer's Agent: Can help in fast-moving markets (optional)
  

8. Steer Clear Of Common First-Time Mistakes

Frequent pitfalls we see:

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• Overextending Budget: Leave buffer for unexpected costs
  
• Changing Jobs: Lenders prefer stable employment
  
• New Credit Applications: Avoid personal loan tarneit loans during the process
  
• Emotional Decisions: Don't overpay due to pressure
  

9. Prepare for the Long Term

Think beyond settlement:

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• 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 long-term home
  
• Exit Strategy: Understand costs if you need to move sooner than planned
  

10. Utilise Professional Mortgage Advice

Why our Melbourne clients value broker guidance:

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• Pre-Approval Precision: We know which lenders are first-home-buyer friendly
  
• 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 schemes, some buyers achieve 5-10%.

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

Varies by area - currently $600,000-$800,000 for entry-level properties.

3. How long does the approval take?

Pre-approval in 24-48 hours, full approval typically 14-28 days.

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

Yes! Joint applications are common with proper legal agreements.

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

Depends on market conditions - we can run scenarios for you.

Final Thoughts

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

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• Navigate the complex property market
  
• Obtain financing that matches your circumstances
  
• Minimise common first-time buyer mistakes
  
• Make informed decisions about your future
  

Remember - every successful homeowner was once a first-time buyer. With patience and these recommendations, you'll be holding your new keys before you know it!

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