Melbourne first-home buyers rush for pre-approval surge

First-home buyer Lilly Mackay is among a new wave of young Melburnians rushing to secure pre-approval as finance applications surge up to sixfold across the city. Picture : Ian Currie

First-home buyer Lilly Mackay has joined a new wave of young Melburnians rushing for pre-approval, with Loan Market Group figures showing finance approvals are up to sixfold in parts of the city this spring.

The 29-year-old marketing professional secured her first pre-approval last week after months of saving and a tense wait with her bank.
“I’ve kind of been searching for about a year, pretty casually at first,” Ms Mackay said.
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“But since the Home Guarantee Scheme came in on October 1, things have been moving fast. It took more than a week for my pre-approval to come through, so when it did, it was such a good feeling.”

She said the process dragged on for days.
“Every morning the bank said ‘one more day’, then another, finally getting it approved felt amazing.”

Marketing professional Lilly Mackay says the Home Guarantee Scheme finally made buying on a single income possible after years of renting and saving. Picture : Ian Currie

A mix of lower interest rates, the five per cent deposit scheme and a promotion at work pushed her to act.
“Everything just aligned,” she said.
“I moved back from London about three years ago with not much money and I’ve been saving since then.”

Ms Mackay is looking for a one-bedroom apartment around $600,000 to $650,000 in Hawthorn or St Kilda, close to work and public transport.

Lilly Mackay is hunting a one-bedroom apartment in Hawthorn or St Kilda priced around $600,000 – $650,000, drawn by lifestyle, transport and inner-city convenience. Picture: Ian Currie

“Lifestyle and convenience are just as important as investment for me,” she said.
“I thought about Geelong because it’s probably smarter value, but I want to be near the city.”

She said the Home Guarantee Scheme had made ownership possible on a single income.
“Having a five per cent deposit and avoiding LMI saves so much money,” she said.
“People see it as risky but if you’re careful it really helps.”

The rise in pre-approvals has lifted her confidence, though she worries about competition for entry-level homes.
“I think entry-level places will become harder to get in the next year because of it,” she said.
“But it’s good to see Melbourne’s market finally picking up again.”

Owning a home, she said, would mean stability after years of renting.
“It’s such a milestone,” Ms Mackay said.
“Not worrying about the rental market anymore would take a huge weight off my shoulders.”

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