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What Melbourne home buyers can expect from our mortgage brokers
Our mortgage brokers have buyers in Melbourne covered with a range of services designed to find the perfect loan for you. Whether you’re after the lowest interest rates, handy features like an offset account, or flexible terms, we’re here to help you compare home loans and get the deal that suits your needs.
A mortgage broker can open doors to some of the best loan products and help you put together an application that ticks all the boxes. Plus, we bring valuable insights into the Melbourne property market and draw from our experience with past clients to ensure you get a loan package that fits your financial situation and goals.
Melbourne borrowers we can help
First home buyers
First home buyers in Melbourne can benefit from using a mortgage broker as they guide you through the process and handle most of the paperwork. They’ll explain different loan options, interest rates, and terms in simple language, so you fully understand what you’re signing up for.
Additionally, mortgage brokers in Melbourne have access to a variety of lenders, including those who might offer deals that aren’t publicly available. They know the ins and outs of various loan products and can recommend several that fit your needs and goals. Brokers can also help you navigate any available grants or incentives, like the First Home Owner Grant (FHOG), and assist with the application to ensure everything is in order.
Refinancers
If you’re looking at refinancing your home loan, a broker can assess your current mortgage and financial situation to determine if it’s a good move. Whether you’re aiming to lower your interest rate, reduce your repayments to free up some cash, or tap into your home’s equity, a broker will help identify the best refinancing options available.
Remember, some mortgage brokers might automatically set your loan term back to 30 years when refinancing. If you’ve already been paying off your mortgage for a few years, this could lower your monthly payments but increase the total interest you’ll pay over the life of the loan. Our Melbourne mortgage brokers can help you figure out the best strategy for your situation.
Investors
Mortgage brokers are incredibly helpful for investors in Melbourne, offering personalised advice and access to some of the best investment property loans. They can work closely with your accountant or financial advisor to develop a strategy that maximises your tax benefits if your investment property is negatively geared.
Brokers can also find loans with features like interest-only repayments to boost your cash flow by reducing your monthly payments. Additionally, a Melbourne broker can help you tap into the equity of your existing properties to fund new investments, making sure you use your assets effectively.
Next home buyers
If you’re looking to upgrade to a larger home or downsize, a mortgage broker can help you find a loan that matches your new home’s price. For example, if you’re upgrading, they’ll help you use the equity from your current property and explore the best loan options and rates to make your move as smooth as possible.
For those downsizing, a broker can adjust your loan to fit your new budget. They’ll find loans that work with your new home’s price and help you handle any leftover balance from your old mortgage.
Self-employed borrowers
Self-employed borrowers often face unique challenges, like inconsistent income and varied expenses, which can complicate getting a home loan. A mortgage broker can make a big difference by connecting you with lenders who understand these complexities and are open to reviewing alternative financial documents, such as profit and loss statements or tax returns, instead of just relying on a standard salary.
Additionally, brokers can help you present your financial situation in the best possible light. They’ll assist in gathering and organising the necessary documents to show your income and stability clearly, making it easier to get approval. Whether it’s finding a lender that suits your income structure or navigating the paperwork, a Melbourne mortgage broker can make the process smoother and increase your chances of securing a loan.
Bad credit borrowers
For Melbourne borrowers with bad credit, getting a home loan can be challenging since traditional lenders often have stringent approval requirements. This is where a mortgage broker can be especially valuable. They have access to a broad network of lenders, including those who specialise in loans for individuals with poor credit.
Brokers are up to speed with alternative loan options and can connect you with lenders who offer more flexible terms. This is crucial because bad credit home loans typically come with higher interest rates and extra fees. A mortgage broker will help you navigate these options to ensure you get the most favourable deal available.
How to find a good mortgage broker in Melbourne
Finding the best mortgage broker in Melbourne can make a real difference in your home loan journey. Here are a few key factors to think about:
How much experience do they have?
Take note of how long they’ve been a broker for, including what types of home loans they specialise in. Most of this information can be found on the broker’s website or social media pages, which may also show previous client testimonials.
Do they have positive reviews online?
With so much information online today, you should scan Google reviews, Rate My Agent and other review sites to see how past clients in Melbourne have rated a particular broker.
How many lenders do they have access to?
One major advantage of using a Melbourne mortgage broker is their access to advanced software that enables them to compare dozens of loan options. With a broader panel of lenders, you’re likely to have more choices as a borrower.
How well do they know the Melbourne property market?
It might be challenging to gauge their expertise until you meet with them, but you can start by reviewing their LinkedIn profile. Many brokers actively share posts and insights about home loans and the Melbourne real estate market on LinkedIn.
It’s best to conduct your own research to focus on what matters most to you. However, be mindful of these red flags:
- Using inconsistent or outdated information Brokers who rely on outdated information about interest rates, loan terms, or the Melbourne property market might indicate they’re behind on the latest trends and offers, potentially affecting the quality of their advice. To spot this red flag, it will require you to do a bit of homework.
- Guaranteeing loan approval or an exact turnaround time Irrespective of how strong your home loan application is and your overall financial position, a broker should never guarantee loan approval. The same goes for brokers who promise a specific date for processing your loan, as each lender has its own procedures and every application is unique.
- Pushy behaviour Brokers who pressure you to make decisions about products or lenders without considering your needs and preferences might be more focused on closing the deal. In Melbourne (and across Australia) mortgage brokers are required to act in your best interests and must adhere to strict guidelines to remain compliant.
- Disorganised during your initial consultation Being disorganised or unprepared to answer your questions may suggest a lack of attention to detail — an essential quality for managing the mortgage process. This could lead to missed details or errors in your application, potentially impacting the outcome.
It’s important to note that some brokers are sole operators or work in small teams, so they might not always be available. Additionally, many mortgage brokers have administrative assistants, credit analysts and other support staff to help manage and process your home loan application. This means you might interact with more than one person, especially if the broker is part of a larger group or aggregator.
How does using a mortgage broker in Melbourne work?
Instead of you handling your loan application alone, a mortgage broker in Melbourne will handle most of the legwork for you. Here’s an overview of how the process works:
1
Initial contact
Schedule an appointment with a Melbourne mortgage broker, which can be done online, over the phone, or in person. During this meeting, discuss your financial situation and goals, including details about your income, living expenses, assets, liabilities, and any other loan features you desire.
2
Preliminary assessment
Your broker will review your financial information to determine your borrowing capacity. They will request documents such as your last two payslips, up to six months of bank statements, and tax returns to get a holistic view of your overall position.
3
Select a loan
Based on the assessment, your broker will present you with three to five loan options that best match your needs. They will explain the interest rates, fees, and terms for each option, helping you make an informed decision.
4
Submit your loan application
Once you’ve chosen a loan, your broker will assist with the application process. They handle the collection and submission of all necessary documents to the lender, ensuring that your application is complete and accurate.
5
Monitor your application
Your broker will keep in contact with the lender to track your application’s progress. They will address any issues that may arise and provide you with regular updates. Meanwhile, the lender will arrange for a property valuation.
6
Review the loan offer
When your loan is approved, the lender will issue a formal loan offer. Your broker will review this offer with you to confirm that all terms meet your expectations and that you understand the details.
7
Prepare for settlement
Your broker will work with the lender, your solicitor or conveyancer, and other relevant parties to prepare for settlement. This includes finalising all paperwork and ensuring that the loan funds are ready for transfer.
8
Settlement day
On the day of settlement, the loan funds are released, and the property transaction is completed. Your broker will ensure that everything is in order and that the settlement process goes ahead smoothly.
9
Follow-up
After settlement, your broker will check in to make sure your loan is working as you expected and that you’re satisfied with the process. They remain available to address any issues or questions that you may have.
Hot tip: Discuss your long-term financial goals and any specific requirements you have for your loan. This includes any preferred loan features, such as fixed or variable interest rates, loan term (i.e. 25 or 30 years), and repayment cycles (weekly, fortnightly or monthly). Clear communication ensures that your broker understands your needs and can identify loan products that align with your objectives, leading to a more tailored and memorable experience.
Melbourne home loan insights 2024
One of the advantages of working with a Melbourne broker is their knowledge of the mortgage market. They work with borrowers of all types and understand which loan products, features and structures are popular for various needs. Here’s a snapshot of the loan market in Melbourne:
- Average home loan in Victoria: $616,965
- Average interest rate: 6.28% p.a. (owner occupier)
- Median property value in Melbourne: $776,044 (all dwellings)
- Median house value in Melbourne: $929,715
- Median unit value in Melbourne: $610,652
- Average time to save for a house deposit in Melbourne: 5 years, 5 months
Melbourne property insights 2024
Recent CoreLogic data revealed the median house value in Melbourne is $929,715, while the median unit value is $610,652. To avoid paying lender’s mortgage insurance (LMI) at these price points, you’ll typically need a 20% deposit: $185,943 for a house and $122,130 for a unit based on the median values. As of July 2024, the average time to sell a property in Melbourne is 39 days.
Top 10 performing suburbs in Melbourne
| Suburb | Median value | Annual change (Aug 23 - Aug 24) |
|---|---|---|
| $534,992 | 3.6% |
| $1,003,152 | 2.5% |
| $737,281 | 2.3% |
| $752,558 | 2.0% |
| $675,515 | 1.8% |
| $912,618 | 1.7% |
| $982,004 | 1.6% |
| $729,389 | 1.4% |
| $665,506 | 1.4% |
| $859,256 | 1.3% |
Melbourne’s best suburbs for families in 2024
Here are 10 of Melbourne’s top family-friendly suburbs, as rated by Move My Stuff, along with the median house prices for each area sourced from realestate.com.au.
- Balwyn: $2,935,000
- Surrey Hills: $2,350,000
- Mount Waverley: $1,620,000
- Glen Waverley: $1,700,000
- Berwick: $877,000
- Brighton: $3,100,000
- Doncaster: $1,500,000
- Williamstown: $1,595,000
- Box Hill: $1,607,500
- Essendon: $1,755,000
Investing in Melbourne property
Here are some key insights for property investors in Melbourne, according to CoreLogic’s latest data:
Median weekly rent for all dwellings
$589
Annual change in rents (April 23 - April 24)
7.0% (houses and units)
Current rental yield
3.7%
Rental growth (July 23 - July 24)
7.8%
Why choose MortgageBroker over other brokers in Melbourne?
At MortgageBroker, we give you access to over 45 lenders, which means you get a vast selection of loan options and rates. This can be very helpful if you’re stretched for time or need assistance finding the right home loan for your circumstances.
We can also help if you're looking to buy, invest or refinance in other parts of Victoria. Whether you need a mortgage broker in Geelong or Ballarat, you can trust our experts to fulfil your home loan needs.
Using our service is straightforward and hassle-free. We’ve designed it this way to be simple and user-friendly, guiding you through each step with clear instructions and support. Our mortgage brokers can help make your next property move in Melbourne a reality.
