Everything you need to know about grants, stamp duty, deposits, and the buying process to confidently purchase your first home in Melbourne and regional Victoria.
The Victorian Government offers a $10,000 grant to eligible first home buyers purchasing or building a new home valued at up to $750,000.
Victoria offers generous stamp duty relief for first home buyers, potentially saving you tens of thousands of dollars.
First home buyers pay zero stamp duty on properties (new or existing) valued at up to $600,000. On a $600,000 property, this saves you approximately $31,070.
A sliding scale concession applies for properties valued between $600,001 and $750,000. The discount reduces as the property value approaches $750,000. No concession is available above $750,000.
To qualify, you must move into the property within 12 months of settlement and live there for at least 12 continuous months. Investment properties do not qualify for these concessions.
The size of your deposit affects your loan options, interest rate, and whether you need Lenders Mortgage Insurance (LMI).
Some lenders accept 5% deposits. LMI will apply, adding thousands to your loan. Best if you want to enter the market sooner.
A 10% deposit significantly lowers your LMI costs and shows lenders stronger financial discipline. A common target for first buyers.
A 20% deposit avoids LMI entirely, gives you access to better interest rates, and reduces your monthly repayments.
Buying your first home in Victoria typically takes 3 to 6 months from start to settlement. Here is what to expect.
Review your income, expenses, and savings. Use online calculators to estimate borrowing power. Factor in stamp duty, legal fees, inspections, and moving costs — typically an additional 3-5% on top of the purchase price.
A mortgage broker will assess your finances and secure pre-approval from a suitable lender. Pre-approval tells you exactly how much you can borrow and gives you confidence at auctions. It typically lasts 3 to 6 months.
Search online (Domain, realestate.com.au), attend open inspections, and shortlist properties within your pre-approved range. Consider location, commute, future growth, and proximity to amenities.
For private sales, submit a written offer through the agent. For auctions (very common in Melbourne), set a firm limit and register to bid. Always get a building and pest inspection before committing, and have a conveyancer review the contract of sale.
Once your offer is accepted, your broker finalises the loan, your conveyancer handles the legal transfer, and settlement occurs — typically 30 to 90 days after signing. You then receive the keys to your new home.
Avoid these pitfalls that cost first home buyers thousands of dollars every year in Victoria.
Without pre-approval, you risk falling in love with a home you cannot afford or losing it to a prepared buyer.
Stamp duty, conveyancing, inspections, insurance, and moving costs can add $15,000 to $30,000 beyond the purchase price.
Your bank only offers their own products. A broker compares 30+ lenders to find the best rate and structure for your situation.
Structural issues, plumbing problems, or pest damage can cost tens of thousands to fix. Always inspect before buying.
Just because you can borrow $700,000 does not mean you should. Leave room for rate rises, unexpected expenses, and lifestyle.
Many first buyers miss out on the FHOG, stamp duty concessions, or the First Home Super Saver Scheme. A broker ensures you claim everything available.
First home buyers face a complex landscape of grants, schemes, lenders, and paperwork. A specialist mortgage broker simplifies the entire process.
Connect with a Melbourne mortgage broker who specialises in helping first home buyers navigate grants, loans, and the buying process.
Find a First Home Buyer Specialist