How to Purchase a Home in Melbourne: A Ten-Step Guide

1. Understand your budget

Before you start scrolling through online property listings, take the time to figure out how much you can pay for a house or unit. That means looking at your income, savings, current expenses and any debts, and making sure you’ll be able to manage monthly or fortnightly mortgage payments.

You’ll also need to factor in upfront costs like:

• Stamp duty
• Conveyancing fees
• Loan application fees
• Lenders Mortgage Insurance (if your deposit is under 20% and you’re not a first home buyer)

For a detailed breakdown of the costs involved with buying a home, check out MoneySmart’s guide to buying a house.

2. Get pre-approved for finance

Having loan pre-approval gives you an idea of how much money you can borrow and shows real estate agents that you’re serious about making an offer. It also helps you move faster once you’ve found the right place.

Looking for fast pre-approval in Melbourne? You will need a qualified and experienced mortgage broker. Apply here to get started with Lend&Co’s local team.

3. Learn about government support

If you’re a first-home buyer in Victoria, you may be eligible for government incentives. These include:

• The First Home Owner Grant (FHOG)
• Stamp duty concessions or exemptions
• The First Home Guarantee (formerly First Home Loan Deposit Scheme)

Visit the Victorian Government’s First Home Buyer Guide to explore what’s available, then contact us for help with your application.

4. Research suburbs and property types

Melbourne has something for everyone, from city apartments to leafy outer suburbs. Think about your lifestyle, transport needs, school zones and long-term goals, and consider which parts of the city are expected to see a rise in value over the next few years.

You can explore housing trends, local council areas and growth regions on the Live in Melbourne website.

5. Choose the right professionals

Buying a home involves more than just choosing a property. In addition to your Melbourne mortgage broker and the real estate agent who sells you the property, you will need to work with:

• A conveyancer or solicitor, who will guide you through the legal side of things
• A building and pest inspector (if you are buying an established home), who will make sure there are no major flaws or compliance issues with the property

6. Start house hunting

With your pre-approval sorted, you’re ready to explore open homes, auctions or private sales. Be sure to:

• Ask about recent renovations or maintenance
• Request a building inspection before making an offer
• Place a reasonable offer and avoid overbidding

Remember, Melbourne’s property market moves quickly and it can take time to find a place and have an offer accepted, so don’t be discouraged if you miss out at first.

7. Make an offer or bid at auction

When you’ve found the right home, you can either make a formal offer or register for auction. Be sure you understand the conditions, such as settlement period, deposit amount and any cooling-off period.

8. Sign the contract and pay the deposit

Once your offer is accepted, you’ll sign a Contract of Sale and pay your deposit (usually 10%). From here, your conveyancer will work with the seller’s legal team to prepare for settlement.

9. Finalise your loan and prepare for settlement

Your lender will complete a valuation of the property, finalise your mortgage paperwork and confirm the settlement date.

The time between signing a contract is usually six weeks, although it can be negotiated to be longer. 

10. Settle and move in

On settlement day, the property officially becomes yours! Your solicitor or conveyancer will handle the final transaction, and you’ll receive the keys to your new home.