First-Time Buyer Tips from a Melbourne Mortgage Broker

Purchasing your first home in Melbourne can feel both overwhelming. As professional mortgage brokers serving the Victorian 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 viewing properties, get a realistic idea of what you can afford:

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• Get Pre-Approved: This demonstrates your maximum loan amount
  
• Factor in All Costs: Remember stamp duty
  
• 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 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 established areas with good infrastructure
  
• Auction vs Private Sale: Understand the strategies for each
  
• Property Types: Consider houses based on your long-term plans
  

4. Prepare Your Financial Documents

Being prepared 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 document unusual transactions
  

5. Choose 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 top-up options
  

6. Know Government Incentives

Melbourne 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 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. Engage the Right Professionals

Your support team matters:

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

8. Steer Clear Of Common First-Time Mistakes

Frequent pitfalls we see:

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

9. Plan for the Long Term

Think beyond settlement:

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• Repayment Strategy: Consider fortnightly 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 first-home-buyer friendly
  
• Application Polish: Present your finances in the strongest light
  
• Ongoing Support: We're here throughout your loan term
  
• Market Insights: Share Melbourne-specific lender preferences
  

First Home Buyer Common Questions

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 $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 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 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
  
• 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 professional support and these insights, you'll be holding your title documents before you know it!

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