Buying Your First Home in Craigieburn and Melbourne: What You Need to Know

Buying your first home is an exciting milestone, but it can also feel overwhelming. How much deposit do you need? How much can you borrow? Which government incentives might you qualify for? And how do you choose a home without stretching your finances too far?

If you're planning to buy in Craigieburn or elsewhere in Melbourne, understanding the process before you start inspecting properties can help you make more informed decisions.

1. Work Out Your Budget and Borrowing Capacity

Before looking at properties, establish how much you can comfortably afford.

Your borrowing capacity depends on several factors, including your income, living expenses, existing debts, employment and the lender's assessment criteria.

Remember that the amount a lender is prepared to lend is not necessarily the amount you should borrow. Consider your ongoing repayments, other household expenses and whether you could manage if interest rates or living costs increased.

2. How Much Deposit Do You Need?

Many buyers believe they must save a 20% deposit before they can purchase a home. While a larger deposit can reduce borrowing costs and may help you avoid lenders mortgage insurance (LMI), some eligible buyers can purchase with a smaller deposit.

Depending on your circumstances, options may include:

A deposit of 20% or more.


A smaller deposit, potentially with LMI.


The Australian Government's 5% Deposit Scheme, if you meet its eligibility and property requirements.


A family guarantee or other suitable lending arrangement, subject to lender policy.


Each option has different requirements, costs and risks. The right approach depends on your financial position and the property you want to buy.

3. Understand First-Home Buyer Incentives

Eligible first-home buyers may be able to access government assistance that reduces some of the costs of purchasing a property.

In Victoria, potential benefits include:

Stamp-duty exemption or concession: Eligible first-home buyers may receive a full exemption for homes valued up to $600,000 or a concession for homes valued above $600,000 and up to $750,000.


First Home Owner Grant: Eligible buyers purchasing or building a qualifying new home may receive a $10,000 grant, subject to the applicable conditions.


Australian Government 5% Deposit Scheme: Eligible buyers may be able to purchase with a 5% deposit without paying LMI under the scheme.


First Home Super Saver Scheme: Eligible buyers may be able to use certain voluntary superannuation contributions towards their first-home deposit.


These programs have separate eligibility rules. Your previous property ownership, residency, partner's circumstances and the type and value of the property can all affect eligibility.

Check the current requirements before including any incentive in your budget. Official information is available from the Victorian State Revenue Office and Australian Government first-home buyer website.

4. Remember the Other Costs of Buying

Your deposit is only one part of the money you may need.

Allow for expenses such as:

Conveyancing or solicitor fees.


Building and pest inspections, where applicable.


Loan-related fees and any applicable LMI.


Moving costs and essential furniture.


Council rates, insurance and other property expenses after settlement.


Some costs may be reduced or waived depending on your eligibility, but it is sensible to keep a financial buffer rather than use every dollar of your savings towards the purchase.

5. Get Your Finances Ready Before House Hunting

Before making an offer, organise your income documents, bank statements, details of existing debts and information about your savings.

A home loan pre-approval can provide an indication of your borrowing capacity and help you understand your price range. However, pre-approval is subject to conditions and is not a guarantee that a particular property or final loan will be approved.

It is also worth checking your credit position and avoiding unnecessary new debts or credit applications while preparing for a home loan.

6. Choose the Right Property and Location

Craigieburn and Melbourne's northern growth corridor offer a range of established homes, newer developments and house-and-land opportunities.

When comparing properties, consider more than the purchase price. Think about your commute, public transport, schools, shops, future household needs, maintenance costs and the surrounding neighbourhood.

If you're considering a new build or house-and-land package, understand the construction timeline, contract conditions, site costs and the possibility of costs changing before completion.

7. Compare Home Loans, Not Just Interest Rates

A low advertised interest rate is important, but it is not the only factor to consider.

Compare the overall loan structure, fees, repayment flexibility, offset and redraw features, fixed versus variable options, and the lender's requirements for your circumstances.

Different lenders can assess the same borrower differently. Comparing suitable options may help you find a loan that fits your needs, rather than choosing a product based on its headline rate alone.

8. Have a Clear Plan Before You Make an Offer

Before committing to a property, understand your available deposit, likely repayments, purchase costs and the conditions attached to your finance.

It is important to coordinate your finance with your conveyancer or solicitor and understand the relevant contract dates and conditions. Do not assume that a pre-approval removes the need for final lender approval.

A well-prepared plan can help you move forward with greater confidence and avoid preventable surprises.

Planning to Buy Your First Home in Craigieburn or Melbourne?

I'm Anil Dadlani, a Mortgage Choice Lending Specialist based in Craigieburn. I help first-home buyers explore home loan options from more than 35 lenders, understand their borrowing position and consider suitable lending structures for their circumstances.

My approach is simple: Strategy first. Structure next. Then the loan.

Learn more about my services at Mortgage Choice Anil Dadlani or arrange an initial consultation through my online booking page.

Important: This article provides general information only and is not personal financial, legal or tax advice. Government incentives, eligibility criteria, property price caps and lender policies can change. Confirm current requirements with the relevant government agency, lender and conveyancer before making a decision.