First-Time Buyer Tips from a VIC Mortgage Broker

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

1. Know Your Borrowing Capacity

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

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• Get Pre-Approved: This demonstrates 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 strong deposit improves your position:

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• Aim for 20%: Avoid Lenders Mortgage Insurance (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 parental contributions with documentation
  

3. Research Melbourne's Property Market

Local knowledge is power:

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• Suburb Profiles: Compare growth projections across neighbourhoods
  
• First Home Buyer Hotspots: Look for home Loan tarneit up-and-coming areas with good infrastructure
  
• Auction vs Private Sale: Understand the strategies for each
  
• Property Types: Consider houses based on your budget
  

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 credit score 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. 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 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 buffer for unexpected costs
  
• Changing Jobs: Lenders prefer consistent employment
  
• New Credit Applications: Avoid credit cards during the process
  
• Emotional Decisions: Don't overpay due to FOMO
  

9. Plan for the Long Term

Think beyond purchase day:

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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 move sooner than planned
  

10. Leverage Professional Mortgage Advice

Why our Victorian clients value broker guidance:

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• Pre-Approval Precision: We know which lenders are supportive
  
• Application Polish: Present your finances in the best light
  
• Ongoing Support: We're here post-settlement
  
• Market Insights: Share Melbourne-specific 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 average first home price in Melbourne?

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

3. How long does the process take?

Pre-approval in 24-48 hours, full approval typically 2-4 weeks.

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 your situation - 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 tips 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
  
• Minimise common first-time buyer mistakes
  
• Make informed decisions about your future
  

Remember - every happy 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 Melbourne mortgage broker team today for personalised advice.