Buying guide · 4 min read · Checked 21 October 2026

How to Buy Your First Home in Melbourne: Step by Step

In short

Work out your budget and the help you qualify for first. Victorian first home buyers pay no stamp duty up to $600,000 and reduced duty up to $750,000, and the federal 5% Deposit Scheme lets you buy up to $950,000 in Melbourne with a 5% deposit and no lenders mortgage insurance. Get pre-approval, use the new Property Price Statement and published auction reserves to shortlist realistically, and have a conveyancer review the contract and Section 32 before you sign or bid.

1. Work out your budget

Your budget is what a lender will lend, plus your deposit, minus the upfront costs of buying. Under the 5% Deposit Scheme you can buy with a 5% deposit, or 2% for single parents, without paying lenders mortgage insurance. Outside the scheme, a deposit under 20% usually means paying that insurance.

Then add the upfront costs: stamp duty if you pay any, registration fees, conveyancing, inspections and moving. Our guide to the costs of buying walks through each one.

2. Check what help you qualify for

Stamp duty: no duty for first home buyers up to $600,000, and a reduced amount from $600,001 to $750,000.
First Home Owner Grant: $10,000 if you buy or build a new home worth up to $750,000.
5% Deposit Scheme: buy up to $950,000 in Melbourne or Geelong ($650,000 elsewhere in Victoria) with a 5% deposit and no lenders mortgage insurance. No income caps and no limit on places.
Help to Buy: the government can take up to a 30% share of an existing home or 40% of a new one, with a 2% deposit, if you earn under $103,000 single or $165,000 as a couple or single parent.
First Home Super Saver: save up to $50,000 for a deposit through voluntary super contributions.

Our grants and schemes guide sets out the rules for each, and which ones you can combine.

3. Get pre-approval

Ask a lender or broker for pre-approval before you start bidding or making offers. It tells you what you can borrow and shows agents you are a serious buyer. Pre-approval usually lasts a few months, so time it with your search.

4. Search with the real numbers

Victoria’s new price rules make this easier than it used to be. Since 1 October 2026, every home for sale comes with a Property Price Statement showing the agent’s indicative price, the three most comparable recent sales and the suburb median. For auctions and fixed-date sales held from 16 October 2026, the seller’s reserve must be published as a single figure at least a week before.

Use those figures to shortlist homes you can actually afford, and compare them with recent sales you find yourself.

5. Check the home before you commit

Read the vendor statement (Section 32) and contract with your conveyancer. The seller must give you the Section 32 before you sign.
Get a building and pest inspection. In Melbourne they typically cost about $450 to $950.
For apartments and townhouses, check the owners corporation records, fees and any planned special levies.
Check planning: zoning, overlays and any applications lodged nearby. Our planning register shows what is proposed in each suburb.
Use the due diligence checklist agents must make available at every inspection.

6. Make an offer or bid

In a private sale you negotiate and then sign a contract. You usually have three clear business days to cool off. If you withdraw in that time, you lose $100 or 0.2% of the price, whichever is more.

At auction there is no cooling-off, and the same applies if you sign in the three clear business days before or after an auction. Have your finance, inspections and conveyancer’s advice done before auction day. A deposit, often 10%, is usually paid when you sign.

7. Settle and move in

Between signing and settlement, often 30 to 90 days, your conveyancer arranges the transfer and your lender prepares the loan. Arrange building insurance from settlement, or earlier if your lender asks. Do a final inspection before settlement to check the home is in the condition you agreed.

If you received first home buyer duty relief or the grant, you generally need to move in within 12 months and live there for at least 12 months. Check the State Revenue Office conditions.

Questions

What people ask us

How much deposit do I need for my first home in Melbourne?

With the 5% Deposit Scheme, 5% (2% for single parents) for a home up to $950,000 in Melbourne, without lenders mortgage insurance. With Help to Buy, 2%. Otherwise, lenders usually want 20% to avoid mortgage insurance.

Do first home buyers pay stamp duty in Victoria?

Not up to $600,000. Between $600,001 and $750,000 you pay a reduced amount. Above $750,000 you pay full duty.

Can I get the First Home Owner Grant on an established home?

No. The $10,000 grant is for new homes that have never been sold or lived in, worth up to $750,000.

Is it better to buy at auction or by private sale?

Private sale gives you a cooling-off period and time to negotiate. Auctions give you no cooling-off, so do your inspections and get finance approved before you bid.

What does the published reserve mean for buyers?

For auctions and fixed-date sales from 16 October 2026, you can see the seller’s reserve at least a week before. If it is above your budget, you can move on before spending on inspections.

Sources

Written by Luke Fornieri, licensed estate agent, Fornieri & Azar, East and South East Melbourne. Checked 21 October 2026. General information only, not legal, tax or financial advice. Grants, duty and rules change, so check the sources or ask us about your situation.