First Home Buyer Mortgage Guide Melbourne
Melbourne Dreams, Mortgage Reality
Buying your first home in Melbourne is exciting, but let’s be real — it can also be overwhelming AF.
From confusing bank jargon to surprise costs, it’s no wonder most first home buyers feel a bit like they’re winging it. That’s where we come in.
At Nude Home Loans, we specialise in helping first home buyers understand the process, plan properly, and actually enjoy the ride.
Here’s your complete, no-BS guide to everything you need to know about getting a home loan in 2025. Mate-to-mate.
1. Get Clear on Your Budget
Before you fall in love with that three-bed fixer-upper in Fitzroy North, get clear on your budget.
📅 What Can You Actually Borrow?
It depends on your income, expenses, debts, deposit, and credit history
Most lenders will offer around 5x your income, but it varies
Online calculators are rough guesses. Work with a broker to get the real number
📉 Think Beyond the Deposit
Stamp duty
LMI (Lenders Mortgage Insurance)
Legal and conveyancing fees
Moving costs, new furniture, etc.
Hot tip: We help you plan for everything, not just the flashy stuff.
2. Understand Pre-Approval (and Why It's Your Best Friend)
Pre-approval means a lender has reviewed your situation and said, “Yep, we’d probably lend you X amount.”
It’s not a 100% guarantee yet (the property still matters), but it puts you in the driver’s seat.
Why it matters:
Agents and sellers will take you seriously
You can make strong offers fast
You avoid wasting time looking at homes out of budget
At Nude: We handle your pre-approval from start to finish — zero stress.
3. Deposit Sizes Explained
💵 Standard: 20%
Avoids LMI
Bigger deposit = lower monthly repayments
🔹 5% Deposit with LMI or Government Schemes
Available via First Home Guarantee or lender products
You’ll pay LMI unless you qualify for a waiver (we’ll check that for you)
💼 First Home Super Saver Scheme (FHSSS)
Save for your deposit using your super
Can withdraw up to $50,000 (2025 limits)
Need help choosing the right strategy? We’ll run the numbers with you.
4. Home Loan Types (What the Hell's the Difference?)
📈 Fixed Rate Loans
Locked interest rate for 1–5 years
Good for budgeting, but less flexible
📉 Variable Rate Loans
Rate changes with the market
Often more flexible, but riskier
💳 Offset Accounts
Your savings “offset” your loan interest
Great for saving interest while keeping access to funds
At Nude: We help you pick based on your life — not just what the banks are selling.
5. Government Grants & Schemes (aka Free Money)
There are some great perks for first home buyers in 2025:
🏡 First Home Owner Grant (FHOG - VIC)
$10,000 for eligible new builds under $750k
🧵 Stamp Duty Concessions
Big discounts or full exemptions in VIC for homes under $600k (partial up to $750k)
🛍️ First Home Guarantee
Buy with 5% deposit + no LMI (limited spots, act fast)
At Nude: We check what you’re eligible for, apply on your behalf, and make sure you don’t miss a cent.
6. The Melbourne Market (What to Expect in 2025)
🏡 Where First Home Buyers Are Buying:
Werribee: Affordable, family-friendly
Sunshine: Rising star for value
Thornbury: Inner-north cool, still kinda reachable
Pakenham/Cranbourne: Growth corridors with good transport links
🔎 Price Trends
Steady growth expected after rate stabilisation
Apartments holding strong
Houses in outer zones still offering value
7. Common Mistakes First Home Buyers Make
Overestimating what they can borrow
Ignoring hidden costs
Skipping pre-approval
Relying on one bank only
Thinking they don’t need help
At Nude: We help you avoid the drama and dodge the pitfalls.
8. Why You Need a Mortgage Broker (Like Us 😎)
We:
Compare 30+ lenders for you
Explain things in plain English
Handle all the paperwork
Find options you won’t get direct from banks
Stick with you from first chat to settlement (and beyond)
And we do it all with good vibes, zero judgment, and your best interest first.
We don’t wear suits. We do answer your texts. We’re here to make it easy.
9. Let’s Get You Home
Ready to ditch the spreadsheets and actually make progress?
We’ll show you what’s possible, help you plan properly, and support you through every single step.
It’s free to chat. And we promise, no boring finance lectures.
