First-Time Buyer Advice from a VIC Mortgage Broker

Purchasing your first home in Melbourne can feel both overwhelming. As experienced mortgage brokers serving the Victorian market, we've helped hundreds of first-time buyers realise their property dreams. This guide shares our essential tips to help you navigate the process with clarity.

1. Know Your Borrowing Capacity

Before falling in love with properties, get a realistic 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 accurate figures
  
• Consider Future Changes: Account for life events
  

2. Save Your Deposit Wisely

A strong deposit improves your options:

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• Aim for 20%: Avoid LMI (typically required below 20%)
  
• Explore Schemes: First Home Loan 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

Area-specific knowledge is power:

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• Suburb Profiles: Compare price trends across neighbourhoods
  
• First Home Buyer Hotspots: Look for established areas with good infrastructure
  
• Auction vs Private Sale: Understand the strategies for each
  
• Property Types: Consider townhouses based on your budget
  

4. Organise 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 credit score 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
  
• fast loan approval Features: Offset accounts, redraw facilities, etc.
  
• Comparison Rate: Looks beyond the advertised rate
  
• Future Flexibility: Consider top-up options
  

6. Understand Government Incentives

Victorian 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 reductions for properties under $600,000
  
• Shared Equity Schemes: Victorian government co-ownership 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 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:

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• Overextending Budget: Leave buffer for rate rises
  
• Changing Jobs: Lenders prefer consistent employment
  
• New Credit Applications: Avoid personal loans during the process
  
• Emotional Decisions: Don't overpay due to pressure
  

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

10. Leverage 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 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 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 14-28 days.

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

Yes! Joint applications are common with proper documentation.

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

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

Remember - every successful homeowner was once a first-time buyer. With patience and these recommendations, 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.