HOME LOAN BROKER MELBOURNE

FIRST HOME BUYERS

YOUR MEANS TO HOME OWNERSHIP

Buying your first home in Melbourne? Seeking transparent guidance from a trusted home loan broker in Melbourne? 

As experienced home loan Brokers in Melbourne, our mortgage specialists will ensure you have all the key information you need to navigate the home-buying process confidently. We'll help you understand loan options, fees, and approval amounts - taking the stress out of securing finance. 

The home-buying journey can be complex - from comparing mortgage rates and features to deciphering contracts. But you don't have to go it alone. As your local Melbourne home loan brokers, we'll handle all the legwork and provide step-by-step guidance. All you need to worry about is finding your dream home in Melbourne. 

With our expertise on your side, you can feel assured you'll get the optimal finance solution and clear advice for buying your first home in Melbourne. Let us help pave your path to Melbourne home ownership.

Margin is here to help guide you along the way and take care of all of the leg work.

Why use a Mortgage Broker as a first home buyer?

A mortgage broker will give any first-time buyer the confidence and help needed to successfully purchase their first property with the right home loan.

Here are just some of the ways a mortgage broker can help a first-time buyer:

  • Offer insight into any grants/concessions where you meet the eligibility

  • Analyse your budget

  • Explain all fees associated with your purchase (stamp duty, conveyancing etc)

  • Show you accessible lenders with low-deposit loans

  • Organise fast and simple pre-approval

  • Ensure your financial goals and budget are matched with the loan choice

  • Liaise with all parties involved in the transaction

  • Get a free property valuation

  • Our services are free which means there is one less expense to worry about

First Home Buyer FAQ

  • A guarantor loan works when someone with security, such as equity in their own home, agrees for a purchaser to use it as security against a new loan for their property purchase.

    One of the most common reasons property buyers use guarantors is to avoid paying Lenders Mortgage Insurance (LMI)

    If you don’t have at least a 20% deposit, you will often have to pay LMI, which can be a big expense for first home buyers.

    However, using a guarantor may allow you to borrow a larger % of the property’s value and not pay LMI.

  • No, you do not! You can purchase property with as little as a 5% deposit, depending on your individual circumstances.However usually you will need a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI)

  • In Victoria, as stated directly from the State Revenue Office:

    If you are buying or building a new home, you may be eligible for the FHOG ($10,000) if you signed your contract on or after 1 July 2013.

    Your new home must be valued at $750,000 or less and be a new home. The property must not have been previously sold as a place of residence, occupied as a home, or leased out or used for short-term accommodation, such as Airbnb.

    You’re not eligible for the FHOG if you or your spouse or partner have already:

    received the FHOG in Australia,

    owned a home or other residential property in Australia, either jointly or separately, prior to 1 July 2000, or

    lived in a home in Australia which either of you owned or part-owned on or after 1 July 2000 for a continuous period of at least six months.

    These criteria apply even if your spouse or partner is not an applicant with you for the FHOG.

  • When you buy your home, you will most likely pay land transfer duty (otherwise known as stamp duty).

    However, how much you pay depends on:

    the property's value,

    what you're using it for,

    if you are a foreign purchaser, and

    whether you are eligible for any exemptions or concessions

    You may be eligible for, and receive more than one exemption, concession or reduction from stamp duty for your property. In Victoria, these include:

    First-home buyer duty exemption or concession – a one-off duty exemption for a principal place of residence (PPR) valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000. This duty exemption or concession is separate from the First Home Owner Grant. The grant is a payment made to you, whereas the first home buyer duty exemption and concession is a reduction in the amount of land transfer duty you pay.

    First-home buyer reduction – a one-off duty reduction of up to 50% for a PPR valued up to $600,000 if you entered into your contract before 1 July 2017.

    Off-the-plan concession – a duty concession for an off-the-plan property, either as a land and building package, or as a refurbished lot.

    Pensioner concession – a one-off duty exemption or concession for a new or established home valued up to $750,000.

    Principal place of residence (PPR) concession – a duty concession for when a property you buy, valued up to $550,000, is intended as your primary home.

    First-home owner with family exemption or concession – a one-off duty exemption or concession for properties valued at $200,000 or less.

    Young farmer’s exemption or concession – a one-off duty exemption/concession for young farmers buying their first farmland property.SOURCE: sro.vic.gov.au/first-home-owner

  • Pre-approval is not compulsory when purchasing your first home, however, it is definitely recommended as it will give you the confidence to explore the property market and bid at auction. It also provides you with a clear spending limit if you decide to build on vacant land.

  • Borrowing power or borrowing capacity refers to the estimated amount that you may be able to borrow for a home loan.It is usually calculated as your net income (income after tax) minus your expenses.You can view our calculators here that can act as a guide only for calculating your borrowing power.

  • You can purchase an investment property as your first home, however, you will not be eligible for the first homeowners grant if you choose to do so.

  • Lenders Mortgage Insurance is an insurance that protects the lender in case of a default on the property

    It does not protect homeowners in the event that they cannot make their repayments.

    LMI is determined by two main factors: your Loan-to-Value (LVR) ratio and your total loan amount. However, LMI costs differ between lenders, regardless of the factors being the same.Generally, LMI is required to be paid if you do not have a 20% deposit.

    You have two general options for paying LMI - either as a lump sum payment when your loan settles or the cost can be added to your total loan amount.