first home buyers loan victoria guide for confident purchasing

How these loans work

In Victoria, a first home loan helps you turn savings into a deposit and funds the rest of the purchase. Lenders assess income, expenses, and your credit to set borrowing limits, then offer fixed or variable rates with different fee structures. Some borrowers may face Lenders Mortgage Insurance if the deposit is under 20%, though government guarantees can reduce or remove it.

Grants, concessions, and eligibility

State programs like the First Home Owner Grant for new builds and stamp duty concessions can lower upfront costs. Eligibility usually requires you to live in the home, be an Australian citizen or permanent resident, and not have owned property before. A steady savings record and clear documentation often improve outcomes.

Expert steps to get loan-ready

• Build a buffer so repayments stay comfortable if rates rise.
• Compare two or three lenders on the true cost: rate, fees, and features such as an offset account.
• Seek a broker’s advice to map schemes, timelines, and lender policies.
• Order a contract review and factor valuation, settlement, and moving costs.
• Keep records: payslips, IDs, and statements to speed approval.