Navigating Your First Mortgage: A Guide for Melbourne’s New Homebuyers

Breaking into Melbourne’s property market as a first-time buyer can feel overwhelming, but understanding your mortgage options is the crucial first step toward homeownership. Melbourne’s median house prices present a significant challenge, making it essential to explore every available advantage. First home buyers in Victoria can access several government schemes designed to ease the path to ownership, including the First Home Owner Grant which provides $10,000 for new homes valued up to $750,000, and stamp duty concessions or exemptions for properties under certain price thresholds. Additionally, the federal First Home Guarantee scheme allows eligible buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), a cost that typically adds thousands to the borrowing expense. Understanding these incentives and how they interact with your borrowing capacity is fundamental to developing a realistic budget and timeline for your purchase.