In a market shaped by shifting interest rates, limited stock, and evolving buyer preferences, Melbourne’s inner suburbs have become a surprisingly good option for first-home buyers in 2025 and 2026.
While Melbourne prices have risen this year, the trajectory has been relatively slow in the inner suburbs. However, following recent rate cuts and the impending introduction of increased incentives for buyers, this is expected to change.
Take a look at why now is a good time to secure a home loan in Melbourne and start researching popular suburbs near the centre of the city.
Inner Melbourne: A lifestyle worth investing in
Younger buyers love inner Melbourne because it’s all about the ‘scene’. Suburbs like Brunswick, Footscray, Collingwood, and Northcote offer a mix of walkability, diverse food scenes, access to green spaces and proximity to the CBD, as well as a range of nightlife, cafes, restaurants and shopping options.
Choosing a compact apartment or townhouse in an inner suburb often wins over a larger home in an outer area because it means shorter commutes, better public transport options (inner Melbourne suburbs have great access to the city’s tram network), and more time to enjoy local amenities.
Market shifts are creating opportunities
Melbourne’s growth has lagged behind other capitals in recent years. In 2024 and 2025, prices stabilised in areas like Brunswick, and there were even small dips that levelled out a sharp rise that happened towards the end of the pandemic.
The thing about a price dip in Australia is that it never lasts for long. Experts are expecting Melbourne to lead the charge in house prices over the next 12-24 months as interest rates fall and demand increases.
While it’s not possible to say for sure what will happen, if you buy within the next few months, history tells us it’s more than likely you will experience positive gains.
What to expect when applying for a home loan in Melbourne as a first-time buyer
Want to take advantage of steady house prices in inner Melbourne and get a foot in the door before they take off again?
First, you’ll need to understand how much you can borrow based on your income, expenses and existing debts. Most lenders also expect you to have savings and a stable employment history (or a steady income as a small business owner), so it’s important to have your documentation in order.
Next comes the loan comparison process. Fixed, variable, offset, and redraw features can all impact your repayments and flexibility, so it helps to have an expert guide you through the options. This is where Lend & Co can do the heavy lifting, acting as your loan broker to compare products across multiple lenders and help secure pre-approval.
Don’t forget about government support for home loans in Melbourne. First-home buyers may be eligible for grants or stamp duty concessions in Victoria, depending on the value of the property, and you may also be able to buy with a deposit as low as 5 per cent, without the need to pay lender’s mortgage insurance.
A mortgage specialist from Lend & Co can help you take advantage of these incentives and move quickly so you can secure a home in inner Melbourne sooner rather than later.
Position yourself for success
If you’re a first-home buyer weighing your options in 2025, don’t overlook Melbourne’s inner suburbs. These areas offer the cultural energy, convenience and investment potential that many outer areas can’t match, especially when combined with the right financial strategy. For a broader overview of the buying process, you can also refer to the Victorian Government’s First Home Buyer Guide.
Whether you’re eyeing a character-filled apartment in Carlton or a modern townhouse in Richmond, the key is to be prepared. Get your budget in order, then speak with a broker from Lend & Co, and you’ll be ready to move when opportunity knocks.
Get Pre-Approved for a Home Loan in Inner Melbourne Today
Looking to buy in Richmond, Carlton, or another inner Melbourne suburb? Apply for home loan pre-approval with Lend & Co to act fast in a competitive market. Our brokers understand the local property landscape and will match you with the right loan to suit your goals and budget. Start your journey toward inner-city home ownership with expert guidance and fast finance solutions.
Contact Lend & Co or book a free strategy call to explore your options for home loans in Melbourne and start your journey toward smart inner-city home ownership.
