10 Steps to Buying Your First Home in Brunswick East

Confirm Your Deposit and Borrowing Capacity

Your deposit size determines which loan structures and government schemes are available to you. Most lenders require at least a 5% deposit, though the Australian Government 5% Deposit Scheme allows eligible buyers to purchase without paying Lenders Mortgage Insurance. If you have a 10% deposit or less, understanding your borrowing capacity becomes essential before you start attending inspections.

In Brunswick East, where the median unit price sits below the Victorian capital city price cap of $950,000 under the 5% Deposit Scheme, buyers with smaller deposits can still access a range of properties. Consider a buyer who has saved $50,000 through a combination of salary contributions and a parental gift. That amount provides a 5% deposit on a property valued at $1,000,000, but only meets the scheme's eligibility if the property value falls within the cap. The buyer could access a unit or townhouse in Brunswick East under the scheme, but would need to check whether their preferred property type and price point align with the requirements.

Genuine savings typically need to be held for at least three months. Gifted deposits from immediate family members are accepted by most lenders, though the donor may need to sign a statutory declaration confirming the funds are a gift and not a loan. If you are accessing the First Home Super Saver Scheme, apply for your determination from the ATO before you sign a contract. Releasing funds from superannuation takes time, and you cannot undo the process once a determination is issued.

Research First Home Buyer Grants and Stamp Duty Concessions

Victorian first home buyers purchasing an established home valued up to $600,000 receive a full stamp duty exemption. A sliding scale concession applies on properties valued between $600,001 and $750,000. For established homes valued above $750,000, standard stamp duty rates apply.

The First Home Owner Grant in Victoria is $10,000, but it applies only to new homes valued up to $750,000. Established homes, which make up the majority of stock in Brunswick East, do not qualify for the grant. If you are purchasing a unit in a new development or an off-the-plan apartment, check whether the contract qualifies for the off-the-plan concession. For strata or community title contracts signed on or before 31 October 2026 for properties not yet titled or substantially completed, duty is calculated on the land value at the contract date only.

Stamp duty concessions and the 5% Deposit Scheme can be combined. Help to Buy, which allows the Australian Government to take an equity stake in exchange for contributing up to 30% of the purchase price on an existing home, cannot be used alongside the 5% Deposit Scheme. Help to Buy has income limits of $100,000 for individuals and $160,000 for joint applicants. If your household income exceeds those thresholds, the scheme is not available to you.

Get Pre-Approval Before You Start Inspecting

Pre-approval gives you a conditional commitment from a lender based on your income, expenses, deposit, and credit history. It is not a guarantee, but it provides a clear borrowing limit and shows selling agents you are in a position to proceed. Pre-approval is typically valid for three to six months, depending on the lender.

Brunswick East is close to the CBD and experiences strong competition from both owner-occupiers and investors. Auctions are common, and properties can sell quickly in a tight market. Without pre-approval, you risk missing out on a property because you cannot move as quickly as other buyers who have already completed their financial assessment.

Submit your payslips, tax returns, bank statements, and identification documents to your broker as early as possible. If you are self-employed, you will generally need two years of financial statements and tax returns. If you have existing debts such as credit cards, personal loans, or a car loan, lenders will factor those repayments into your serviceability assessment. Closing unused credit accounts before you apply can improve your borrowing capacity.

Understand Lenders Mortgage Insurance and How to Avoid It

Lenders Mortgage Insurance is charged when your deposit is less than 20% of the property value. It protects the lender, not you, and can add thousands of dollars to your upfront costs. LMI premiums vary depending on the size of your deposit and the amount you borrow.

The 5% Deposit Scheme removes the need for LMI by having Housing Australia guarantee the shortfall between your deposit and 20% of the property value. Applications are made through participating lenders, not directly through Housing Australia. Not all lenders participate in the scheme, so confirm with your broker which lenders are on the panel and what home loan options are available through each one.

If you are not eligible for the scheme or prefer to use a lender outside the panel, you can still avoid LMI by increasing your deposit to 20%. A buyer purchasing a $700,000 unit in Brunswick East would need $140,000 as a deposit to avoid LMI under a standard loan structure. That same buyer could proceed with a $35,000 deposit under the 5% Deposit Scheme without paying LMI, provided the property value and their circumstances meet the scheme's requirements.

Choose the Right Loan Structure for Your Circumstances

Fixed and variable rate loans each have distinct features. A fixed rate locks in your interest rate for a set period, usually between one and five years, which provides repayment certainty. A variable rate moves with market conditions and generally offers more flexibility through features such as an offset account or redraw facility.

An offset account is a transaction account linked to your home loan. The balance in the offset account reduces the amount of interest you pay without requiring you to make extra repayments into the loan itself. A redraw facility allows you to make additional repayments into your loan and withdraw those funds later if needed. Not all fixed rate loans include these features, and some lenders charge fees for redraw access.

Split loans allow you to divide your borrowing between fixed and variable portions. In a scenario where a buyer borrows $600,000, they might fix $400,000 for three years and keep $200,000 on a variable rate with an offset account. This structure provides some rate certainty while maintaining access to flexible repayment options. Your broker can model different splits based on your income stability and how you plan to manage repayments.

Factor in All Upfront and Ongoing Costs

Your deposit and stamp duty are not the only costs involved in purchasing a property. Conveyancing or legal fees typically range from $1,500 to $3,000. Building and pest inspections cost between $400 and $800 depending on the property type. Lender application fees, valuation fees, and settlement fees can add another $1,000 to $2,000.

Strata levies apply to units and townhouses. In Brunswick East, quarterly strata levies can range from $800 to $1,500 or more, depending on the age of the building, the number of units, and whether the complex includes a pool, gym, or lift. Request a copy of the owners corporation records during your due diligence period. These records show whether the building has adequate funds in the maintenance reserve and whether any major works are planned.

Ongoing costs include council rates, water rates, building insurance if you own a house, and contents insurance. If you are borrowing more than 80% of the property value and are not using the 5% Deposit Scheme, you will also need to pay LMI upfront or add it to your loan balance. Adding LMI to your loan increases the amount you borrow and the total interest you pay over the life of the loan.

Review Contract Terms and Cooling-Off Periods

Most private sale contracts in Victoria include a three-business-day cooling-off period. This period starts the day after you sign the contract and allows you to withdraw from the purchase. If you cool off, you forfeit 0.2% of the purchase price as a penalty. Cooling-off rights do not apply to auction purchases. If you buy at auction, the contract is binding immediately.

Before you sign, have your conveyancer or solicitor review the contract. They will check for special conditions, identify any easements or covenants on the title, and confirm the settlement date. The standard settlement period in Victoria is 30, 60, or 90 days, depending on what is negotiated.

If the property you are purchasing is subject to a section 32 statement, review it carefully. The section 32 includes information about the property's title, any encumbrances, zoning, and whether the property is affected by any planning overlays. For units, the section 32 will include owners corporation details and a copy of the building insurance policy. Missing or incorrect information in the section 32 can give you grounds to rescind the contract, but you must act within the prescribed timeframe.

Organise Final Loan Approval and Settlement

Once your offer is accepted, your lender will order a valuation. The property must be valued at or above the purchase price for the lender to proceed. If the valuation comes in lower than the purchase price, you may need to renegotiate with the vendor, increase your deposit, or withdraw from the contract if you cannot meet the shortfall.

Your lender will issue a formal loan offer once the valuation is complete and all conditions are satisfied. Read the loan offer carefully. It will specify the loan amount, interest rate, repayment amount, loan term, and any conditions such as taking out building insurance before settlement. If you do not understand any part of the loan offer, ask your broker to explain it before you sign.

Settlement is the day ownership transfers from the vendor to you. Your conveyancer or solicitor will coordinate with the vendor's representative, your lender, and the relevant authorities to ensure all funds are transferred and the title is registered in your name. You will usually receive the keys on settlement day, though in some cases access is arranged for the following business day.

Arrange Building and Contents Insurance

Building insurance is required by your lender if you are purchasing a house. The policy must be in place before settlement. If you are purchasing a unit or apartment, building insurance is typically arranged by the owners corporation and included in your strata levies. Check the section 32 statement or owners corporation documents to confirm the building is insured and the policy is current.

Contents insurance is optional but recommended. It covers your personal belongings such as furniture, clothing, electronics, and appliances. If you are moving into an older building in Brunswick East, check whether the policy includes coverage for damage caused by storms, water leaks, or fire. Some policies exclude certain types of damage or apply higher excess amounts for older buildings.

Your broker can refer you to an insurance specialist who can assess your needs and compare policies. Taking out insurance through a broker may provide access to products or discounts not available through direct retail channels.

Prepare for Settlement and Moving Costs

Moving costs vary depending on how much you need to transport and whether you hire professional removalists. Budget between $500 and $2,000 for a local move. If you are moving from interstate or have a large volume of furniture, costs can exceed $5,000.

Utility connections, including electricity, gas, water, and internet, should be arranged at least two weeks before settlement. Some providers require a deposit or proof of identity before they will connect services. If you are moving into a unit, check with the owners corporation whether any providers are already connected to the building or whether you need to arrange individual connections.

Brunswick East is well serviced by public transport, with the number 96 tram running along Nicholson Street and connecting to the CBD. Proximity to CERES Environment Park, Merri Creek Trail, and the retail precinct along Lygon Street makes the suburb popular with young professionals and families. If you plan to use public transport or cycle to work, factor those preferences into your property search rather than treating them as secondary considerations after price and size.

Call one of our team or book an appointment at a time that works for you. We work with first home buyers across Brunswick East and can help you assess which loan structure, deposit option, and government scheme aligns with your circumstances.

Frequently Asked Questions