First-Time Buyer Tips from a VIC Mortgage Broker

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

1. Understand 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 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. Prepare 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: Victorian Homebuyer Fund may help
  
• Genuine Savings: Most lenders want 3-6 months of consistent savings
  
• Gift Deposits: Some lenders accept parental contributions 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 up-and-coming areas with good infrastructure
  
• Auction vs Private Sale: Understand the differences for each
  
• Property Types: Consider houses based on your budget
  

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. 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. 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 exemptions 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 legal aspects
  
• Building Inspector: Identifies structural problems
  
• Buyer's Agent: Can help in fast-moving 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 overpay 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 move 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 Melbourne?

While 5% is possible, 20% avoids LMI. With schemes, 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 2-4 weeks.

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

Yes! Joint applications are common with proper legal agreements.

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 guidance. By following these strategies from experienced 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 begin your first home journey? Contact our Victorian mortgage broker team today for obligation-free advice.