Finance basics for buying in 3002. General information only.
Lenders treat East Melbourne stock carefully. Older 1970s blocks, small studios under 50 square metres and serviced style apartments can attract tighter loan to value ratios, while new boutique residences are often valued on limited comparable sales. Talk to a broker early, get the valuation approach confirmed in writing, and allow for owners corporation fees that reflect lifts, gardens and heritage maintenance.
IllustrationMost lenders look for a deposit of 10 to 20 percent plus purchase costs. Below 20 percent, lenders mortgage insurance usually applies, and lenders will want to see genuine savings history. The bigger the deposit, the wider your lender options on apartments.
Off the plan purchases usually mean a deposit at contract, then nothing until settlement when the building completes. Formal loan approval happens close to settlement, not at contract, so keep your finances steady through construction and budget for the valuation coming in at, above or below your contract price.
Federal and Victorian support schemes for first home buyers change often, and each carries price caps and eligibility rules. Check the current settings on the official government sites, or ask your broker to run your numbers against every scheme you may qualify for, before you budget around any of them.
Pre approval tells you your ceiling before you fall for a floor plan. It typically holds for about 90 days, is free from most lenders and brokers, and puts you in a position to move when a release opens.
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