D-05
First home buyers
Buying your first place in Melbourne's south-east. We explain every step, from deposit to settlement, in plain English.
Find out more : First home buyersD-01
Home loans
Home Loans in Melbourne
Plain English. Properly structured.
Whether you're upsizing, downsizing, moving across the south-east or buying your first investment property, the loan you choose shapes your finances for years. We help Melbourne buyers find a lender that fits, then set the loan up so it keeps working as life changes.
01 — What it is
Home loans, in plain English.
A home loan is money borrowed from a lender to buy residential property, secured against that property. You repay it over an agreed term, usually up to 30 years, with interest charged on the outstanding balance. Sounds simple. The detail is where it gets interesting.
Loans differ in far more than the headline rate. There's the choice between variable and fixed interest (or a split of both), principal and interest versus interest-only repayments, offset accounts, redraw, the fees charged upfront and ongoing, and how flexible the lender is if you want to make extra repayments or change things later. Two loans with similar rates can cost very different amounts over their life once you add those features up.
Then there's structure. If you own more than one property, or plan to, the way loans are split and secured matters. Cross-securing properties can make it harder to sell one later. Mixing personal and investment borrowing in one loan can blur the tax-deductible part, which your accountant won't thank you for. We think about these things upfront, so you don't have to untangle them later.
As brokers, we compare options from a panel of lenders, explain the trade-offs in plain English, and handle the application from start to settlement. We're based in Oakleigh and work with buyers right across Melbourne's south-east, from Clayton and Glen Waverley to Bentleigh and Malvern East.
02 — Who it suits
Is this the right fit?
- [A]Owner-occupiers buying their next home in Melbourne
- [B]Families upsizing or downsizing within the south-east
- [C]Investors buying a first or additional investment property
- [D]Buyers who want an offset account or a split fixed and variable structure
- [E]People with an existing property who want to use equity for a deposit
- [F]Anyone who wants a second opinion before signing with their bank
03 — How it works with us
From first chat to settlement.
- 01Stage 1 of 4Free chat
Free chat
We talk through what you're buying, your income, your savings and your plans for the next few years. No forms yet, just a conversation.
- 02Stage 2 of 4Borrowing power and options
Borrowing power and options
We work out roughly what you could borrow with different lenders and show you a short list of loans that suit, with the pros and cons of each.
- 03Stage 3 of 4Pre-approval
Pre-approval
Once you've chosen, we prepare and lodge the application so you can make offers or bid at auction with a clearer idea of your limits.
- 04Stage 4 of 4Formal approval to settlement
Formal approval to settlement
When you find the property, we manage the valuation, formal approval and loan documents, and liaise with your conveyancer through to settlement.
04 — What lenders look at
What you'll need.
| Ref | Item | Why it matters |
|---|---|---|
| M-01 | Photo ID | Driver's licence and passport or Medicare card for each borrower. |
| M-02 | Income evidence | Recent payslips, plus a group certificate or income statement. Self-employed? See our low doc page. |
| M-03 | Savings history | Bank statements showing your deposit and how it built up over time. |
| M-04 | Current debts | Statements for credit cards, car loans, personal loans and any existing mortgages. |
| M-05 | Living expenses | A realistic picture of what you spend each month. Lenders will check it against your statements. |
| M-06 | Contract of sale | Once you have one. We need it for formal approval and the valuation. |
| M-07 | Rental income | For investment purchases, a rental appraisal or current lease. |
05 — Common mistakes
What to avoid.
Check 01
Shopping on rate alone
Check 02
Cross-securing without thinking
Check 03
Applying everywhere at once
Check 04
Forgetting the extra costs
Q-01How much deposit do I need to buy a home in Melbourne?
It depends on the lender and the loan. Many lenders prefer a 20% deposit to avoid lenders mortgage insurance, but loans with smaller deposits are available. We'll help you understand your options based on your savings and situation.
Q-02Should I fix my rate or stay variable?
Fixed rates give you certainty on repayments for a set period. Variable rates usually offer more flexibility, like unlimited extra repayments and a full offset. Many people split their loan to get some of both. We explain the trade-offs so you can decide.
Q-03Is an offset account worth it?
If you keep savings in the bank, an offset can reduce the interest you pay while keeping the money accessible. Some loans with offsets carry higher fees, so it comes down to how much you would typically hold in it.
Q-04Can I use equity in my current home to buy another property?
Often, yes. If your home is worth more than you owe, a lender may let you borrow against that equity for a deposit. How it's structured matters, and we'll set it up so each loan stays separate where possible.
Q-05How long does home loan approval take?
It varies by lender and how complete your paperwork is. Having your documents ready upfront is the single biggest thing that speeds it up. We give you a clear list early on.
Q-06Do you charge a fee for home loans?
For most standard home loans, brokers are paid by the lender on settlement. We'll always tell you upfront if any fee applies to your situation, before you commit to anything.
07 — Related
Related loans.
D-06
Refinancing
Switching lenders, releasing equity or restructuring your loans. We check whether a move actually leaves you better off.
Find out more : RefinancingD-02
Construction loans
Building a new home, a knock-down rebuild or a major renovation. Loans that pay your builder in stages as the work goes up.
Find out more : Construction loansFrom the blog
Construction6 min read
How Construction Loans Work in Victoria: Progress Payments Explained
A plain-English guide to how construction loans are paid out in stages, what each progress payment covers, and how to keep your build and your finance in step.
First Home Buyers5 min read
First Home Buyer Guide for Melbourne's South-East
Buying your first home in Oakleigh, Clayton, Carnegie or nearby? Here's how to work out your budget, what government support is available, and how the buying process works.
Self-Employed5 min read
Self-Employed Home Loans: How to Get Approved with Low Doc
Self-employed and finding it hard to get a home loan? Here's how lenders assess business income, when low doc loans make sense, and how to prepare a stronger application.
08 — Enquire
Tell us what you're planning.
No cost and no obligation. We'll help you understand your options and what the next step looks like.
Prefer email? Write to help@ridgefinance.au.