Akm Finance - A Comprehensive Guide to Purchase Your Home
Embarking on the journey to homeownership is a significant milestone, especially in Victoria's dynamic and evolving property market. As housing demand continues to grow and urban expansion reaches into regional areas, buying your first home has become a more nuanced process than ever before. With median house prices in Melbourne now exceeding $820,000 and regional towns experiencing substantial growth(figures may vary), first-time buyers need to be well-informed, financially prepared, and proactive. Fortunately, with the right mix of government assistance and expert financial advice, the dream of owning your first home in Victoria is well within reach.
Understanding the Victorian Property Landscape
Over the past decade, Victoria’s property market has changed in ways that have deeply affected how people live, work, and find a place to call home. In metropolitan Melbourne, house prices have surged by more than 67%, driven by population growth, infrastructure investments, and lifestyle shifts. These trends illustrate how important it is for first-home buyers to plan strategically, understand their borrowing capacity, and take full advantage of support programs to enter the market confidently.
Government Initiatives Supporting First Home Buyers
To ease the financial burden and help new buyers take their first steps onto the property ladder, several state and federal government programs have been designed to provide financial support:
The First Home Owner Grant (FHOG) is a one-time payment of $10,000 to help eligible first-time buyers who are purchasing or building a brand new home valued at $750,000 or less. It serves as an excellent boost to your initial deposit and can often be applied during the settlement process.
Stamp Duty Concessions: First-home buyers in Victoria can save thousands through stamp duty concessions. These savings significantly reduce upfront costs and make entry into the market more accessible.The Victorian Homebuyer Fund offers a shared equity scheme where the Victorian government can contribute up to 25% of the property purchase price. This helps lower your loan amount and avoid Lenders Mortgage Insurance (LMI). The scheme is open to eligible buyers who meet the income and property value criteria, but it’s important to note that the fund is set to end on June 30, 2025. Acting early is essential to benefit from this initiative before it concludes.Keep in mind that government schemes can change, so it's essential to check with Housing Australia or participating lenders for the latest information.
First Home Loan Deposit Scheme (FHLDS): Now part of the federal government’s Home Guarantee Scheme, the FHLDS allows eligible buyers to purchase a home with just a 5% deposit while avoiding LMI. This scheme is particularly helpful for individuals or couples with good income and credit history but limited savings.
Financial Planning and Mortgage Considerations
Understanding your finances is the foundation of a successful property purchase. According to AKM Finance, one of Victoria’s trusted mortgage brokers, buyers must be clear on their budget, borrowing power, and loan options. Different lenders offer various loan products with fixed or variable rates, offset accounts, and redraw facilities. Comparing these features and seeking expert advice ensures that your mortgage aligns with your long-term financial goals.
A mortgage broker can help simplify this process, offering tailored advice based on your employment status, credit history, savings, and property goals. Their access to multiple lenders can also uncover competitive deals that may not be available directly to consumers.
Building or Buying: Key Factors to Consider
If you're building a new home, especially on a house-and-land package, additional considerations apply:
Deposit Requirements: For those relying on a 5% deposit and government grants, it's critical to coordinate timelines with your builder and lender. Funds need to be available when the contract is signed and during the construction phase.
Progressive Payments: Builders typically require payments at different stages of construction (slab, frame, lock-up, etc.). Your lender must approve these draws from your loan, so understanding the builder's payment schedule and aligning it with lender procedures is essential.
Valuations: Lenders will assess your property using an 'as if complete' valuation, factoring in the land and the finished home. This valuation affects how much you’re able to borrow from a lender. If the valuation is lower than expected, it could mean adjusting your loan or contributing more funds upfront.
Upcoming Changes and Opportunities
With the Victorian Homebuyer Fund set to end by mid-2025, eligible buyers are encouraged to act soon to make the most of this valuable support. Additionally, the federal government is working on a new shared equity scheme, projected to offer up to 40% in co-buying support for eligible participants. While full details and timelines are pending, this could open doors for many Australians who currently feel priced out of the market.
Meanwhile, keeping an eye on interest rate trends, market conditions, and evolving lending policies is wise. First-home buyers who prepare early and remain flexible can position themselves to act quickly as new opportunities arise.
Conclusion
Purchasing your first home in Victoria is an achievable and rewarding goal with the right support and guidance. By taking advantage of the available government schemes, working with trusted professionals like AKM Finance, and understanding the key steps in the homebuying process, you can confidently navigate the path to property ownership.
Whether you’re buying an established home or building from the ground up, every step you take with preparation will bring you closer to a place you can truly call your own.
Need Expert Guidance? AKM Finance is here to support first-home buyers through every stage of the process. Their experienced mortgage brokers can help you understand your options, secure the right loan, and ensure your journey to homeownership is smooth and successful. Reach out today and take your first step toward owning a home in Victoria. If you need more info, you can directly visit our website www.akkfinance.com.au