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Yes, You Can Qualify for a Home Loan! A Guide to Buying Property in Kensington, VIC

Owning your first home in your 30s or 40s is more achievable than you might think—especially when you have the right tools, knowledge, and support behind you. If you’ve been eyeing Kensington, VIC, as your potential future neighbourhood (great choice, by the way), you're already on the right track.

Whether you're saving for your deposit, working on your credit, or just exploring your options, this guide will walk you through what it takes to qualify for a home loan—and how to make it happen, even if you're still building your financial confidence.

Why Kensington?

Kensington is a vibrant inner-city suburb located just 4 km northwest of Melbourne’s CBD. It’s a favourite among young professionals and first-home buyers for good reason: it’s got that perfect blend of charm, convenience, and community.

With heritage-listed terraces, modern apartments, peaceful green spaces like JJ Holland Park, and excellent transport access (including two train stations), Kensington offers a lifestyle that’s both relaxed and well-connected. You’re minutes from the city, yet surrounded by quiet streets, cafes, and creative energy.

Median prices:

What Do I Need to Qualify for a Home Loan?

Getting approved for a home loan comes down to a few key ingredients. The good news? These are all things you can work towards, no matter where you're starting.

✅ 1. Steady Income

Lenders want to see that you’re financially stable. Ideally, you should be employed for at least 6–12 months in your current role, or have consistent income if you’re self-employed. If you’re just starting your career, don’t stress—strong savings habits and a low debt load can still work in your favour.

✅ 2. A Realistic Deposit

A 20% deposit is the gold standard (so, $100,000 for a $500,000 property), but it’s not the only option. Some lenders accept as little as 5–10%, especially if you’re eligible for First Home Buyer support from the Victorian Government.

Learn more about grants and stamp duty concessions:
SRO Victoria – First Home Buyer
https://www.sro.vic.gov.au/first-home-owner

✅ 3. A Healthy Credit Report

Your credit score shows lenders how well you’ve managed money in the past. A good score can help you access more competitive interest rates, but it’s not the only factor. Your income, expenses, and savings also play a big role.

You can check your credit score for free using:

✅ 4. Clear, Manageable Expenses

Lenders review your regular expenses (like rent, subscriptions, groceries, and travel) to make sure you can comfortably repay a loan. The more manageable your lifestyle costs, the higher your potential borrowing power.

“But What If My Credit Isn't Perfect?”

No worries. Having a less-than-perfect credit score doesn’t automatically disqualify you. In fact, many Gen Z and Millennial buyers build their financial foundation while preparing to buy. You’re not behind—you’re learning and growing.

Here’s what you can do:

1. Start a Savings Habit

Even if you’re not ready to buy yet, consistently saving—even $50 to $100 a week—shows lenders that you’re financially responsible. It’s also great prep for future mortgage repayments.

2. Review Your Credit Report

Make sure all the information is correct and dispute any inaccuracies. Over time, good financial behaviour (like paying bills on time) will improve your score.
Check yours for free here:

3. Minimise Unnecessary Debt

Try to pay down credit cards or personal loans before applying for a mortgage. Lenders are more likely to say yes when you have minimal outstanding debt.

‍‍‍ 4. Consider a Guarantor

If your parents or a close family member owns property, they may be able to help you by going guarantor. This can reduce or eliminate the need for a deposit and avoid Lenders Mortgage Insurance (LMI). Be sure to get independent financial and legal advice before going down this path.

5. Work with a Mortgage Broker

A good mortgage broker can help you find lenders who are open to different credit profiles. Many offer free consultations and can guide you through the pre-approval process.
Find a licensed broker:
FBAA – Mortgage Broker Directory
https://www.fbaa.com.au/find-a-mortgage-broker/

Why Buying in Kensington is Worth It

Kensington is more than just a place to live—it’s a lifestyle investment. Here’s why first-home buyers are loving it:

  • Proximity to the city without the inner-city price tag
  • Strong rental demand, great for long-term investment potential
  • A diverse mix of homes—from apartments to Victorian terraces
  • A strong sense of local community and creative culture

And as Lou Rendina, Director of Rendina Real Estate, puts it:

"We’ve seen a noticeable increase in young buyers showing interest in Kensington. They’re looking for lifestyle, value, and future growth—and Kensington delivers on all fronts. With the right guidance, buying your first home here is absolutely within reach."
– Lou Rendina

How to Boost Your Chances of Approval

Whether you’re a year away from applying or ready to go now, here are some positive steps you can take today:

  • Set up a monthly budget and track your spending
  • Open a dedicated savings account for your deposit
  • Avoid new credit applications (like credit cards or car loans) right before applying for a mortgage
  • Get pre-approved before you start house hunting—it’ll give you confidence and clarity

✨ Final Thoughts

Buying your first home isn’t just a dream—it’s a plan. And like all good plans, it starts with a bit of preparation and belief in what’s possible.

If Kensington has caught your eye, you're not alone. With its welcoming community, green spaces, heritage homes, and easy access to Melbourne’s CBD, it’s the kind of place you can truly put down roots.

And the best part? You’re already taking the first step by learning about the process. Whether you’re ready now or just getting started, your future in Kensington is closer than you think.

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