First home buyers
First home buyer mortgage broker in Melbourne.
We help first home buyers across Melbourne secure the right home loan with clarity and confidence, from working out your deposit to the day you get the keys.
First home buyer help in short
MKS Lending helps first home buyers in Melbourne work out their borrowing power, deposit options and eligibility for the 5% Deposit Scheme, the First Home Owner Grant and Victorian stamp duty concessions, then secures pre-approval and manages the loan through to settlement.
What you need to know
Four things to understand before you make an offer.
Buying your first home in Melbourne is exciting, but deposits, grants, borrowing limits and lender policies can quickly become overwhelming. We help first home buyers across Melbourne and Moonee Ponds get clear on four things before they start bidding:
- How much you can borrow
- How much deposit you need
- Which government schemes and concessions you qualify for
- How to avoid unnecessary costs such as Lenders Mortgage Insurance (LMI)
Whether you are looking at an apartment in Brunswick, a townhouse in Essendon or a house in Pascoe Vale, we help you move forward with certainty.
How much can a first home buyer borrow?
Your borrowing capacity depends on your income (including overtime or bonuses), existing debts such as HECS-HELP, credit cards and car loans, your living expenses, your deposit and the interest rate buffer the lender applies.
Example: a Melbourne couple earning a combined $150,000 a year with minimal debts may be able to borrow roughly $600,000 to $750,000, depending on lender policy and deposit. Every lender calculates this differently, so we compare them to find your realistic range, safely and responsibly.
Deposits
You may not need a 20% deposit.
Many first home buyers assume they need 20%. Often they do not. Depending on your situation, you may be able to buy with:
5% deposit
Under the 5% Deposit Scheme, without paying LMI, if you are eligible.
5 to 10% deposit with LMI
With Lenders Mortgage Insurance added to the loan or paid upfront.
A family guarantee
Using equity in a parent's property to reduce or remove the deposit you need.
A gifted deposit
Funds from family, where the lender's policy allows it.
Government help
First home buyer schemes and grants in Victoria.
Here is how the main options work. We check your eligibility and manage the applications for you.
| Scheme | What it does | Key points |
|---|---|---|
| 5% Deposit Scheme (Home Guarantee Scheme) | Buy with as little as 5% deposit without paying Lenders Mortgage Insurance. | Since 1 October 2025 there are no income caps and no limit on places, and property price caps were increased. Price caps still apply by location. |
| Family Home Guarantee | Helps eligible single parents and single legal guardians buy with as little as 2% deposit. | Eligibility and price caps apply. |
| Help to Buy (shared equity scheme) | A federal government scheme where the government contributes funds towards your purchase in exchange for a share of the property, so you can buy with as little as 2% deposit. | The government can contribute up to 40% of the price of a new home or up to 30% of an existing home. You do not pay rent on its share and can buy it back over time. Income and property price caps apply. |
| First Home Owner Grant (state based) | A grant towards an eligible new home. | Generally for new homes under a set value. Conditions apply. |
| Stamp duty exemption or concession (state based) | Removes or reduces stamp duty for eligible first home buyers. Estimate your stamp duty | Full exemption or a concession depending on the property value. |
Scheme rules, caps and grant amounts change. We confirm your eligibility against the current rules from Housing Australia and each state revenue office before you apply.
Lenders Mortgage Insurance
What is LMI, and can you avoid it?
LMI is a one-off premium charged by most lenders when your deposit is under 20%. It protects the lender, not you, and it can cost thousands of dollars, or tens of thousands on larger loans.
Under the 5% Deposit Scheme, eligible buyers can avoid LMI entirely. A family guarantee can also remove it. We work out whether paying LMI, using a scheme or a guarantor structure gives you the best outcome.
Avoid these mistakes
Common first home buyer slip-ups.
- Overestimating borrowing power
- Forgetting stamp duty, conveyancing and other upfront costs (use our stamp duty calculator)
- Applying with the wrong lender first, which can leave unnecessary credit enquiries
- Not understanding LMI
- Making offers before securing proper pre-approval
The process
Step by step: buying your first home.
Strategy session
We review your income, deposit, goals and the suburbs you like.
Pre-approval
We secure conditional approval so you can make offers and bid at auction.
Find your home
You find the property. We check the contract conditions with your conveyancer.
Approval and settlement
Valuation and final checks done, funds transferred and you get the keys.
Talk to Kristian Said, Senior Mortgage Broker
MFAA-accredited and based in Moonee Ponds, Kristian helps first home buyers, upgraders, investors and people building their home find a loan that fits, and explains every step in plain English.
Client reviews
What our clients say.
Teo pre-approved a home loan giving us the confidence to look for our first house.
I have used MKS Lending Group for both home loan financing and home loan refinancing. Kristian has been wonderful to work with, always answering any questions and providing advice anytime. I highly recommend MKS for any home loan needs.
I've used Kris for two loans now and both experiences have been great. He's easy to deal with, communicates really well, and clearly knows his stuff. Highly recommend.
Free loan review
Get your first home loan review
Tell us a little about your plans. A broker will call you, usually within one business day, to talk through your options. No cost and no obligation.
We listen first
A short chat about your goals, income and timing.
We compare 50+ lenders
30+ banks and 20+ private lenders, not just one bank's products.
You decide
We explain the options in plain English. There is no pressure to proceed.
Questions
Frequently asked questions
How much deposit do I need as a first home buyer in Melbourne?
You may be able to buy with as little as 5% under the 5% Deposit Scheme if you are eligible, or around 5 to 10% with LMI. A 20% deposit is not always required.
Are there income caps on the 5% Deposit Scheme?
Not any more. Since 1 October 2025 the scheme has no income caps and no limit on the number of places, and property price caps were increased. Price caps and other eligibility rules still apply.
Can I get the First Home Owner Grant in Victoria?
Generally yes, if you are buying or building an eligible new home under the Victorian value threshold and meet the other criteria. We confirm eligibility before you sign.
How long does pre-approval last?
Typically 60 to 90 days, depending on the lender. We can refresh it if your search takes longer.
Can I buy an apartment as a first home buyer?
Yes, but some lenders restrict certain postcodes, small apartments or high-density buildings. We check lender policy for the property before you commit.
Free download
Download your First Home Buyer Checklist.
Created by the MKS Lending team, this free checklist helps you plan, prepare and feel confident at every stage, from working out your budget and deposit to understanding the acronyms.
Ready for a better home loan?
Book a free, no-obligation loan review. We compare the market and show you exactly what is possible.