In short: GNT Finance compares home loans from a wide panel of banks and non-bank lenders, works out how much you can borrow, gets you pre-approved, and manages the application through to settlement. We are based in Mickleham and help buyers across Melbourne and Victoria. In most cases there is no cost to you for our home-loan service, because the lender pays us.
Buying a home in Melbourne means choosing between hundreds of loan products that look similar on a comparison site and behave very differently once you own them. Rate matters, but so do the offset account, how the lender calculates your borrowing power and how quickly they approve. This page explains how home loans work in Victoria, what lenders look for, and how we run the process for you.
Who this is for
- Owner-occupiers buying an established house, townhouse or apartment anywhere in Melbourne or regional Victoria.
- Upgraders moving from a first home in Roxburgh Park or Epping to a bigger place in Greenvale, Mickleham or Sunbury.
- Buyers declined, or offered less than expected, by their own bank.
If you are buying for the first time, start with our first home buyer loans page, which covers the 5% deposit guarantee, the $10,000 grant and the stamp duty exemption. If you already own and want a better deal, see refinancing.
Loan types compared
Most home loans in Australia are variable, fixed, or a split of the two. The features attached to them matter as much as the headline rate.
| Loan type | Best suited to | Typical features | Watch out for |
|---|---|---|---|
| Basic variable | Buyers who want the lowest rate and few extras | Redraw, no annual fee | Usually no offset account |
| Full-feature variable (package) | Owners with savings to park in an offset | 100% offset, credit card, discounted rate | Annual package fee, often $250–$400 |
| Fixed rate (1–5 years) | Households that need a certain repayment | Locked rate, some allow small extra repayments | Break costs if you sell or refinance early |
| Split loan | People who want certainty on part and flexibility on the rest | Fixed portion plus variable with offset | Two sets of terms to manage |
| Interest-only | Investors, or short-term cash-flow needs | Lower repayments for 1–5 years | Higher total interest, higher assessment rate |
We walk through the trade-offs in fixed vs variable rates and offset vs redraw. You can also model a split with the split loan calculator.
GNT Finance is accredited with the major banks, customer-owned banks and specialist non-bank lenders; our lender panel page lists who we work with. A bank that is generous with bonus income might be strict on a small credit default, while a non-bank might accept both and price a little higher.
How it works with GNT Finance
- Discovery call (20–30 minutes). We talk through what you want to buy, your income, deposit, debts and timeline, in person at Mickleham, by phone or by video.
- Borrowing power. Using the lenders' own calculators, we tell you what different lenders will actually approve. Lenders assess you at your rate plus a 3 percentage point buffer, and results can differ by $50,000 or more between banks.
- Loan recommendation. You receive a short comparison of two or three suitable loans, why we recommend them, and the total cost over the first few years including fees.
- Pre-approval. We lodge a full application so you can make offers or bid at auction with confidence; see home loan pre-approval.
- Formal approval. Send us the contract. We order the valuation, convert the pre-approval to unconditional approval and liaise with your conveyancer.
- Settlement and beyond. We check the loan is set up as agreed (offset linked, repayments correct, fee waivers applied), then review your rate each year.
What lenders assess, and the documents you will need
Every lender checks four things: income, expenses, deposit and credit history. How they weigh them differs.
Income
PAYG applicants need two recent payslips with a matching year-to-date figure. Overtime, allowances and bonuses are usually counted at 80% or averaged over two years. Self-employed applicants have their own rules, covered under self-employed loans.
Living expenses and debts
Lenders compare your declared living expenses against a benchmark for your household size and postcode, and use whichever is higher. Credit cards count at around 3.8% of the limit per month even with a zero balance, so cancelling an unused card can lift borrowing power.
Deposit
Below 80% LVR you will usually need to show 5% in genuine savings held for three months, and lenders' mortgage insurance applies. Our guide to LVR and LMI explains the thresholds.
Credit file
A clean file is not essential, but recent unpaid defaults or several applications in a few months will narrow your options. We check your file before anything is lodged.
The full list is in our home loan documents checklist: ID, two payslips, a recent tax summary, three months of bank statements, evidence of deposit and statements for existing loans.
Worked example: a $650,000 house in Craigieburn
A couple with a combined income of $165,000 buys an established four-bedroom house in Craigieburn for $650,000. They have saved $170,000 and are not first home buyers.
| Item | Amount |
|---|---|
| Purchase price | $650,000 |
| Deposit (20%) | $130,000 |
| Loan amount | $520,000 |
| Loan-to-value ratio | 80% (no LMI) |
| Land transfer duty (owner-occupier, general rate) | $34,070 |
| Transfer and mortgage registration fees | about $2,000 |
| Conveyancing, building and pest inspection | about $2,000 |
| Total cash required | about $168,000 |
Stamp duty on $650,000 is calculated as $2,870 plus 6% of the amount over $130,000. The principal place of residence concession only applies up to $550,000, so it does not help here. Check your own figure with the stamp duty calculator.
For illustration, at 6.00% p.a. over 30 years, principal and interest repayments on $520,000 are about $3,118 a month. Keeping $20,000 in a 100% offset account saves roughly $1,200 in interest in the first year alone, and the saving compounds. Run your own numbers in the mortgage repayment calculator.
Costs and fees to expect
- Lender application or settlement fee: $0–$600. Often waived on packaged loans.
- Annual package fee: $250–$400 if you take a packaged loan with offset.
- Government fees: land transfer duty (see above), plus transfer and mortgage registration fees.
- Conveyancing: typically $1,000–$2,000 in Victoria.
- LMI: only if borrowing more than 80% of the value; can be added to the loan.
- Our service: no cost to you for our home-loan service in most cases. The lender pays us a commission, which we disclose in writing. See how mortgage brokers get paid.
The upfront costs calculator adds everything together for a given purchase price.
Common mistakes we see in Melbourne
- Bidding at auction with only an online "conditional" approval. Auction sales in Victoria have no cooling-off period, so the finance must be properly assessed before you raise your hand. Read buying at auction in Victoria.
- Chasing the cheapest advertised rate. A 0.05% lower rate is worth about $16 a month on $520,000. An offset account, or a lender who will actually approve your overtime, is worth far more.
- Signing a contract without a finance clause. Private sales should include a subject to finance clause with a realistic date.
- Taking on new debt just before applying. Car finance or a buy-now-pay-later account opened the month before can cut borrowing power by tens of thousands.
Why use a mortgage broker for a home loan
Your bank can only offer its own products. A broker has a legal duty, the Best Interests Duty under the National Consumer Credit Protection Act, to recommend the loan that suits you, not the one that pays the most. Gorakh Timilsina worked as a senior credit officer assessing applications before founding GNT Finance, so your file is packaged the way an assessor wants to read it. That speeds up approval and improves your chance of a yes on the first attempt.
We also work in Nepali as well as English, which matters to many families in Melbourne's north. Compare the two approaches in mortgage broker vs bank.
Frequently asked questions
How much can I borrow for a home loan in Melbourne?
As a rough guide, most lenders will lend around five to six times your gross household income, less the impact of debts and dependants. A couple earning $165,000 with no other debts might borrow $750,000 to $850,000 depending on the lender. Lenders assess you at your interest rate plus 3 percentage points, so the number is sensitive to rate changes. Use the borrowing power calculator, then let us confirm it with real lender policy.
How long does home loan approval take?
With complete documents, pre-approval from most lenders takes two to five business days. Formal approval after you find a property usually takes another three to seven days, depending on the valuation. Turnaround times change week to week, so we tell you the current timeframes before choosing a lender so a slow assessor does not cost you a property.
Do I need a 20% deposit to buy in Melbourne?
No. You can buy with 5% under the First Home Guarantee if you are eligible, or with a 5–10% deposit plus lenders' mortgage insurance, or with a family guarantee. A 20% deposit avoids LMI and usually secures a slightly lower rate, but waiting years to reach it can cost more than the LMI premium if prices rise. See low deposit home loans.
Does using a broker cost anything?
In most cases there is no cost to you for our home-loan service. The lender pays GNT Finance a commission after settlement, and we disclose the amount in your credit proposal. Some specialist or very small loans may attract a fee, which we tell you about before you commit to anything.
Can you help if my bank has said no?
Often, yes. A decline is usually about one lender's policy rather than your overall position: a short time in your job, a small default, casual income or a high credit card limit. We identify the reason and match you with a lender whose policy fits. Where the answer is genuinely "not yet", we give you a plan to get there.
Talk to GNT Finance
Whether you are buying in Craigieburn, Point Cook or Ballarat, we will show you which lenders suit your situation and what the loan will really cost over the first five years. Appointments are in person at Mickleham, by phone or by video. Book a free consultation or call 0426 403 703.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.