Set Your Budget

Before you look at a single property, understand exactly what you can afford. This means calculating your deposit, estimating upfront costs, and knowing your maximum purchase price.

Calculate your usable deposit — savings minus upfront costs (aim for 20% to avoid LMI, or 5% with a government guarantee)
Factor in stamp duty — Victoria charges transfer duty on all property purchases. Use the SRO calculator at sro.vic.gov.au
Budget for legal fees ($1,500–$2,500 for a conveyancer), building inspection ($400–$700), and pest inspection ($200–$400)
Check if you qualify for the First Home Owner Grant ($10,000 for new builds up to $750k) or stamp duty concessions
Use our Mortgage Calculator (top nav) to estimate your monthly repayments at different price points

Upfront Cost	Typical Amount	Notes
Stamp Duty	$20k–$55k+	Varies by price & buyer type. First home buyers may get concessions.
Conveyancer / Solicitor	$1,500–$2,500	Essential. Do not skip legal representation.
Building & Pest Inspection	$500–$1,000	Per property inspected before you bid.
Lenders Mortgage Insurance (LMI)	$5k–$20k+	Only if deposit is under 20%. Can be capitalised into loan.
Mortgage Registration & Transfer Fee	~$1,500	Government fee paid at settlement.
Moving Costs	$500–$3,000	Often forgotten. Budget accordingly.

✦ Melbourne Tip

In 2025, Melbourne's metro median house price is around $900k–$950k. A 20% deposit on the median is approximately $185k–$190k before costs. Many first home buyers target suburbs like Werribee, Melton, Craigieburn or Frankston where medians are $450k–$650k.

Get Pre-Approved

A pre-approval (also called conditional approval) from a lender tells you the maximum amount they'll lend you. In Melbourne's competitive market, attending auctions without pre-approval is extremely risky.

Approach 2–3 lenders or use a mortgage broker to compare options across 30+ lenders simultaneously
Documents required: last 2 payslips, last 2 years of tax returns (if self-employed), 3 months of bank statements, proof of deposit, list of assets and liabilities
Pre-approval is typically valid for 90 days — don't get it too early
Understand the difference between pre-approval and unconditional approval — pre-approval is not a guarantee
Check your credit score for free at Equifax or Experian before applying

✦ Broker vs. Bank

A mortgage broker compares dozens of lenders for free and can often secure a lower rate than going direct to a bank. They're paid by the lender, not you. Use the broker cards below to compare options.

⚠ Watch Out

Multiple credit applications in a short period can damage your credit score. Use a broker to soft-check your options before committing to formal applications.

Research Suburbs & Properties

Melbourne has 300+ suburbs across dozens of LGAs. Narrowing down your shortlist requires balancing price, lifestyle, transport, schools, and growth potential.

Use NestScout's suburb table to compare median prices, 10-year growth trends, and quarterly changes across all Melbourne suburbs
Click any suburb to see nearby schools, public transport access, and an AI-generated suburb profile
Attend 10–20 open homes before making any offers — you need market feel before you can bid confidently
Track recent comparable sales in your target suburb using sold results on realestate.com.au or domain.com.au
Consider the suburb's infrastructure pipeline — check the Victorian government's Plan Melbourne website for upcoming train lines, roads, and development zones
Research council rates, owner-occupier vs. investor ratios, and vacancy rates for investment purchases

✦ Melbourne Auction Culture

Melbourne has one of the world's highest auction rates. Over 70% of properties in inner and middle-ring suburbs sell at auction. You need pre-approval before bidding as contracts become unconditional immediately upon the fall of the hammer.

Inspect Properties

Never make an offer or bid at auction on a property you haven't thoroughly inspected — both physically and legally.

Attend the open home at least twice — once in the day and once in different weather if possible
Book a professional building inspection ($400–$700) to identify structural issues, rising damp, roof problems, or asbestos in older homes
Book a pest inspection ($200–$400) separately or combined — termites in Melbourne can cost $50k+ to remediate
Check the Owners Corporation (OC) certificate if buying an apartment or townhouse — review minutes for disputes, special levies, and maintenance issues
Look up the property's flood, bushfire, and contaminated land overlays on the DELWP Planning Maps website (maps.land.vic.gov.au)
Check street parking, noise from nearby roads or trams, and mobile phone reception

⚠ Older Melbourne Homes

Many properties built before 1990 in inner Melbourne contain asbestos in roof sheeting, eaves, or wet areas. A pre-purchase inspection will flag this — factor remediation costs into your offer price.

Legal Due Diligence

Your conveyancer or solicitor reviews the Section 32 (Vendor's Statement) — a legal document the seller must provide before any sale. This is critical — do not skip it.

Engage a licensed conveyancer or property solicitor before making any offer or bidding at auction
Have them review the Section 32 Vendor's Statement — this discloses title details, encumbrances, council rates, outgoings, planning overlays, and any notices affecting the property
Check the Certificate of Title for easements, covenants, or caveats that could restrict what you can build or do with the property
For off-the-plan purchases, have a solicitor review the contract carefully — sunset clauses can allow developers to cancel contracts in rising markets
Confirm the settlement date in the contract aligns with your loan approval timeline

✦ Section 32 Explained

Victoria's Section 32 is unique in Australia. It's a vendor-prepared legal document disclosing everything material about the property. You're entitled to receive it before signing anything. If the agent won't provide it, walk away.

Make an Offer or Bid at Auction

Melbourne properties sell by two main methods — private sale (make an offer) or auction (public bidding). Each requires a different strategy.

Private sale: Submit a written offer via the agent. Include your deposit amount, settlement date, and any conditions (subject to finance, building inspection). The vendor can accept, reject, or counter.
Auction: Register with the agent on the day. Bring your chequebook or bank transfer capability for the 10% deposit. If you win, the contract is unconditional — there's no cooling-off period.
Set a hard maximum before the auction and don't exceed it in the heat of the moment
Bid confidently and early — hesitant bidding invites competition. A strong opening bid can discourage other bidders.
If a property passes in, you have the right to negotiate first with the agent as the highest bidder
For private sales, you have a 3-business-day cooling-off period after signing (not applicable to auctions)

✦ Vendor Bids

In Victoria, auctioneers can make one vendor bid to start or restart bidding. This is legal and must be declared. It is not a real bid — it's the agent trying to get the auction moving. Don't be put off by it.

⚠ Auction Day Deposit

If you win at auction you must pay 10% deposit on the day — either by personal cheque (still accepted) or bank cheque. Some agents now accept EFT but confirm in advance. Failing to pay immediately can void the contract.

Exchange Contracts

Exchanging contracts makes the sale legally binding. At this point both parties are committed — the buyer pays the deposit and the settlement date is locked in.

Your conveyancer will review and negotiate the contract of sale before you sign
Pay the 10% deposit (held in trust by the agent — you don't lose it unless you default)
Arrange formal (unconditional) loan approval from your lender — pre-approval must now become full approval
Organise building insurance from the date of exchange — you're at risk from this point even before settlement
Standard settlement period in Victoria is 60 days but can be negotiated (30 days or 90+ days)

✦ Cooling-Off Period

For private sales in Victoria, you have 3 business days after signing to cool off. If you withdraw, you forfeit 0.2% of the purchase price (not the full deposit). This does NOT apply to auction purchases.

Settlement & Getting the Keys

Settlement is the final step where ownership legally transfers. In Victoria this now happens electronically via PEXA (Property Exchange Australia).

Your conveyancer and lender handle the settlement transaction via PEXA — funds are transferred electronically and title transfers automatically
Do a final inspection of the property within 24 hours of settlement — check nothing has been damaged or removed since exchange
Ensure all included items (appliances, light fittings, window furnishings) listed in the contract are still present
Your conveyancer will confirm settlement is complete — typically between 12pm–2pm on settlement day
Collect keys from the agent once your conveyancer confirms funds have settled
Your lender registers the mortgage on the title — you'll receive a letter of title once registered (can take 2–4 weeks)

✦ Post-Settlement Checklist

After getting the keys: update your address with ATO, VicRoads, Medicare, electoral roll, and all banks. Arrange contents insurance. Redirect your mail. Notify your council for rates billing. If it's an investment, engage a property manager promptly to minimise vacancy.

⚠ Delayed Settlement

If settlement is delayed due to your finance not being ready, you'll pay penalty interest — typically the contract rate (often 12–14% p.a.) on the outstanding balance for each day of delay. Make sure your lender is ready well before settlement day.

How to Buy aProperty inMelbourne