Do you know what comes before the home loan application?

Most people in Moorabbin start thinking about buying a home when they see a property they want.

The problem is that without preparation, you won't know whether you can borrow enough, what deposit you actually need, or which home loan options suit your situation. Pre-purchase planning means working all of that out before you start looking in earnest, so when you find the right property, you're ready to move.

Why start planning before you apply for pre-approval

Pre-approval tells you how much a lender will let you borrow, but it doesn't tell you whether that amount works for your budget or whether you've chosen the right loan structure.

Consider someone earning $85,000 a year who wants to buy a unit near Moorabbin Station. They might be approved to borrow $550,000, but if they haven't planned for how much the repayments will be at current variable rates, or whether they need an offset account to manage their savings, they can end up with a loan that doesn't fit how they live. Planning means deciding on your budget, understanding what deposit you can pull together, and working out which loan features matter before you sit down with a lender.

How much deposit do you actually need in Moorabbin

You don't always need 20% saved to buy a home. Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase with a 5% deposit and avoid paying Lenders Mortgage Insurance. In Victoria, the property price cap for capital city and regional centres is $950,000, which covers most units and townhouses in Moorabbin.

If you're buying an established unit near South Road and the purchase price sits within that cap, a 5% deposit might be all you need to proceed. The scheme doesn't have income limits, and you apply through a participating lender rather than directly to Housing Australia. You'll still need to cover settlement costs on top of your deposit, so factor in conveyancing, building and pest inspections, and any lender fees.

What stamp duty concessions apply to first home buyers in Victoria

Victoria offers a full stamp duty exemption on properties valued up to $600,000 and a sliding scale concession on properties between $600,001 and $750,000. The exemption applies to both new and established homes, as long as you move in within 12 months of settlement and live there for at least 12 continuous months.

For someone buying a two-bedroom unit in Moorabbin, this can mean saving several thousand dollars that would otherwise go to the State Revenue Office. If the property is valued above $750,000, standard duty rates apply and there's no concession available. The valuation used is the dutiable value, which is generally the purchase price unless the Valuer-General determines otherwise.

Should you fix part of your interest rate or stay variable

A fixed interest rate locks in your repayments for a set period, usually between one and five years. A variable interest rate can move up or down depending on market conditions, but it usually comes with more flexibility, including full access to an offset account and unlimited extra repayments.

In our experience, splitting your loan between fixed and variable can work well if you want some certainty around repayments but don't want to lose flexibility entirely. You might fix half your loan for three years and leave the other half variable with an offset attached. That way, if rates drop, part of your loan benefits, and if you receive a bonus or tax refund, you can park it in the offset without restriction. The right structure depends on your income stability and how much you value predictable repayments over access to features.

Using the First Home Owner Grant and First Home Super Saver Scheme together

Victoria's First Home Owner Grant provides $10,000 for new homes valued up to $750,000. It doesn't apply to established properties, so if you're buying an older unit in Moorabbin, you won't be eligible. The grant can be used toward your deposit or settlement costs.

The First Home Super Saver Scheme is a federal program that lets you make voluntary contributions into your super fund and later withdraw up to $50,000 to put toward your deposit. Concessional contributions are taxed at 15% rather than your marginal rate, which can help you save faster if you're on a higher income. You need to apply to the ATO for a determination before you sign a contract, so start that process early if you plan to use it. Both the grant and the FHSS can be used alongside the 5% Deposit Scheme, and combining all three can significantly reduce the cash you need upfront.

When to speak to a mortgage broker in Moorabbin

Talk to a mortgage broker in Moorabbin before you start attending open inspections. A broker can review your income, expenses, and savings to give you a realistic borrowing figure, explain which low deposit options you're eligible for, and help you compare loan features across different lenders.

We regularly see buyers who've spent months looking at properties only to find out they needed to adjust their budget or that they qualified for a scheme they didn't know existed. Getting that clarity early means you can focus on properties that actually suit your financial position and move quickly when the right one comes up.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions