A Melbourne first home buyer story: buying with a 5% deposit
Buying your first home in Melbourne can feel out of reach. This first home buyer story shows how the right structure, a 5% deposit and a broker in your corner can turn 'one day' into settlement day sooner than you'd think.
The starting point: renting and saving
Like a lot of Melburnians, our first home buyer — let's call her Mia — was renting in the inner north, putting away what she could while rents kept climbing. She assumed she needed a full 20% deposit before she could even start looking.
After a free broker chat, Mia learned she could buy with as little as 5% deposit using the First Home Guarantee, avoiding tens of thousands in lenders mortgage insurance.
Working out the real numbers
Together we mapped her income, her small HECS debt and her living costs to find her genuine borrowing power — not a guess from an online ad. That gave Mia a clear, confident budget before she fell in love with a property.
We also factored in Victorian stamp duty concessions for first home buyers, which made a meaningful difference to the cash she needed at settlement.
Getting pre-approval before the search
With a clean application and the right lender chosen, Mia secured pre-approval. That meant when she found a one-bedroom apartment in Brunswick, she could make an offer the same week with confidence.
Pre-approval also gave her negotiating power — agents take buyers far more seriously when finance is sorted.
From offer to settlement
Once her offer was accepted, the broker managed the valuation, formal approval and the back-and-forth with the lender so Mia could focus on her building inspection and the move.
A few weeks later she had the keys — owning instead of renting, with repayments not far above what she'd been paying her landlord.
What made the difference
Mia's story isn't unusual. The three things that mattered most were starting earlier than she thought possible, using the right government scheme, and having a broker compare lenders so she got both approval and a sharp rate.
If you're renting in Melbourne and wondering whether you're ready, the only way to know is to run your real numbers — which we do for free.
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Frequently asked questions
This page is general information only and not financial advice. Lending criteria, rates and government schemes change — speak to a XLOANS broker for advice tailored to your situation. XLOANS is a Melbourne-based mortgage broking service.
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