First-Time Buyer Advice from a Melbourne Mortgage Broker

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

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 demonstrates 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 life events
  

2. Save Your Deposit Wisely

A substantial 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 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 price trends across neighbourhoods
  
• First Home Buyer Hotspots: Look for established areas with good infrastructure
  
• Auction vs Private Sale: Understand the differences for each
  
• Property Types: Consider townhouses based on your long-term plans
  

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 ATO notices
  
• Credit History: Check your report beforehand
  
• Explain Large Deposits: Be ready to verify 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 advertised rate
  
• Future Flexibility: Consider portability 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 suited to your situation
  
• Conveyancer: Handles contract 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 credit cards during the process
  
• Emotional Decisions: Don't compromise due to pressure
  

9. Prepare for the Long Term

Think beyond purchase day:

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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 long-term Pro Lending home loans
  
• Exit Strategy: Understand costs if you need to move 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 supportive
  
• Application Polish: Present your finances in the strongest light
  
• Ongoing Support: We're here post-settlement
  
• 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 typical first home price in Melbourne?

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

3. How long does the process take?

Pre-approval in 1-3 days, full approval typically 14-28 days.

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

Yes! co-ownership 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 Victoria is an exciting goal with the right preparation. By following these strategies from local mortgage brokers, you'll be better positioned to:

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• 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 successful homeowner was once a first-time buyer. With professional support 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.