First Home Buyer

Buying your first home in Melbourne is exciting but navigating deposits, grants, borrowing limits and lender policies can quickly become overwhelming.

At MKS Lending, we specialise in helping first home buyers across Melbourne and Moonee Ponds secure competitive home loans with clarity and confidence. As an experienced first home buyer mortgage broker in Melbourne, we compare multiple lenders, structure your loan correctly from day one, and guide you through every stage of the process from pre-approval to settlement.

Whether you’re buying an apartment in Brunswick, a townhouse in Essendon, or a house in Pascoe Vale, we help you move forward with certainty.

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First Home Buyer Loans in Melbourne: What You Need to Know

We help you understand all four before you make an offer.

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How Much Can a First Home Buyer Borrow in Melbourne?

Your borrowing capacity depends on:

• Your income (including overtime or bonuses)
• Existing debts (HECS, credit cards, car loans)
• Living expenses
• Deposit size
• Interest rate buffers applied by lenders

Example Scenario
A Melbourne couple earning a combined $150,000 per year with minimal debts may be able to borrow approximately $600,000–$750,000 depending on lender policy and deposit size.
However, every lender calculates borrowing power differently. As a first home buyer mortgage broker in Melbourne, we compare multiple lenders to maximise your borrowing capacity safely and responsibly.

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How Much Deposit Do First Home Buyers Need in Melbourne?

Many buyers assume they need a 20% deposit. That is not always the case.

You may be able to buy with:

• 5% deposit (under the First Home Guarantee scheme)
• 8–10% deposit (with Lenders Mortgage Insurance)
• A guarantor loan (using parental property equity)
• Gifted deposit from family

We assess your situation and structure your application to reduce upfront costs where possible.

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First Home Buyer Grants & Schemes in Victoria

If you’re buying in Melbourne, you may be eligible for:

Eligibility depends on:

• Property value
• Citizenship status
• Income
• Whether the property is new or existing

As your Melbourne first home buyer mortgage broker, we confirm eligibility and manage the application process on your behalf.

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What is Lenders Mortgage Insurance (LMI)?

LMI is an insurance premium charged when your deposit is below 20%. It protects the lender, not you.

For example: On a $700,000 purchase with a 10% deposit, LMI could cost $15,000–$25,000 depending on the lender.

However, under certain government schemes, LMI can be avoided entirely.

We analyse:

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Step-by-Step: The First Home Buying Process in Melbourne

We manage the communication between lender, conveyancer and real estate agent to keep the process smooth.

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Why Use a First Home Buyer Mortgage Broker in Melbourne?

Choosing the right structure from day one can save tens of thousands of dollars over the life of your loan.

As a dedicated first home buyer mortgage broker in Melbourne, we:

• Compare multiple lenders not just one bank
• Structure your loan for future flexibility
• Explain fixed vs variable rates clearly
• Help you understand offset accounts and redraw
• Guide you beyond settlement

Banks offer their products. We compare the market to find a solution suited to you.

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Common Mistakes First Home Buyers in Melbourne Make

1. Overestimating borrowing power
2. Forgetting stamp duty and upfront costs
3. Applying with the wrong lender first
4. Not understanding LMI
5. Buying before securing proper pre-approval

Avoiding these mistakes can mean the difference between smooth approval and declined applications.

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Frequently Asked Questions