First Home Buyer Tips from a Melbourne Mortgage Broker

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

1. Know Your Borrowing Capacity

Before falling in love with 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 moving costs
  
• Use Online Calculators: But consult a broker for personalised figures
  
• Consider Future Changes: Account for homepage interest rate rises
  

2. Save Your Deposit Wisely

A strong deposit improves your position:

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• Aim for 20%: Avoid LMI (typically required below 20%)
  
• Explore Schemes: Victorian Homebuyer Fund 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:

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• Suburb Profiles: Compare price trends 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 townhouses based on your long-term plans
  

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 financial statements
  
• Credit History: Check your report beforehand
  
• Explain Large Deposits: Be ready to verify unusual transactions
  

5. Choose the Right Home Loan

Key considerations for first-timers:

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• 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. Know Government Incentives

Victorian first-home buyers may access:

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• First Home Owner Grant: $10,000 for new 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 tailored to your situation
  
• Conveyancer: Handles legal aspects
  
• Building Inspector: Identifies potential issues
  
• Buyer's Agent: Can help in competitive markets (optional)
  

8. Avoid Common First-Time Mistakes

Frequent pitfalls we see:

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• Overextending Budget: Leave buffer for unexpected costs
  
• Changing Jobs: Lenders prefer consistent employment
  
• New Credit Applications: Avoid personal loans during the process
  
• Emotional Decisions: Don't compromise due to FOMO
  

9. Plan 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 forever home
  
• Exit Strategy: Understand costs if you need to sell 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 supportive
  
• Application Polish: Present your finances in the strongest 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 Victoria?

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

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

Varies by area - currently $600,000-$800,000 for first-home properties.

3. How long does the approval take?

Pre-approval in 1-3 days, full approval typically 2-4 weeks.

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

Yes! co-ownership are common with proper legal agreements.

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 exciting goal with the right guidance. By following these tips from local mortgage brokers, you'll be well-prepared to:

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

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

Ready to start your first home journey? Contact our Victorian mortgage broker team today for personalised advice.