18 Feb 2025 12 Essential Tips for Buying First Home in Melbourne: 2025 Guide
Buying your first home in Melbourne is an exciting time, but it can also feel overwhelming with rising property prices and complex loan options. Owning a home gives you stability, financial security, and a place to truly call your own. That’s why knowing the right strategy—saving a house deposit, understanding stamp duty, and choosing the best loan option—is crucial.
Our mortgage brokers at EverLend can simplify the buying process by helping first-home buyers compare loan lenders, access government grants, and secure a pre-approved loan. With our brokers’ expert guidance, you can avoid costly mistakes and confidently take the next step toward achieving homeownership.
Here are 12 essential tips to help you successfully purchase your first home in Melbourne.
12 Tips for Buying First Home in Melbourne
Buying your first home is a major milestone, and the right approach can make all the difference. These 12 essential tips will help you make informed decisions and avoid common pitfalls.
#1 Assess Your Financial Readiness
Before starting your property search, review your financial situation to understand your borrowing capacity. Consider your income, expenses, and savings to determine how much you can afford for a house deposit and ongoing mortgage repayments. Lenders also assess your credit history, existing debts, and financial commitments before approving a loan option.
What you can do: Use a mortgage broker to evaluate loan schemes, compare financing options, and ensure your buying budget aligns with your long-term financial goals.
#2 Save for a Sufficient Deposit
A higher house deposit reduces your loan amount and lowers mortgage repayments, making homeownership more affordable. First-home buyers who save at least 20% of the purchase price can avoid lenders mortgage insurance (LMI), which adds thousands of dollars to buying costs. Using a super fund, such as the First Home Super Saver Scheme, can help boost savings and reach your goal faster.
What you can do: Set a realistic savings goal, track your expenses on a weekly basis, and explore government grants or buyer concessions to reduce upfront costs.
#3 Explore First Home Buyer Grants and Concessions
Eligible first-home buyers in Victoria can access government grants, such as the First Home Owner Grant (FHOG), which provides $10,000 for new homes. Stamp duty concessions and one-off duty exemptions can also help reduce the overall buying costs, especially for properties under $600,000. Understanding these incentives can save thousands of dollars and make entering the property market more affordable.
What you can do: Check your eligibility for government grants, use stamp duty calculators to estimate costs, and speak with a mortgage broker to maximise your savings.
#4 Get Pre-Approved for a Mortgage
A pre-approved loan gives first-home buyers a clear buying budget and strengthens their position as a competitive buyer. Lenders evaluate your financial situation, including income, debts, and credit history, to determine your borrowing capacity. With pre-approval, you can confidently make offers, knowing exactly how much you can afford.
What you can do: Work with a mortgage broker to compare loan schemes, find the best type of loan for your needs, and secure pre-approval before starting your property searches.
#5 Research Melbourne’s Suburbs Thoroughly
Different suburbs in Melbourne vary in property prices, infrastructure, and lifestyle offerings. Affordable areas like Werribee, Craigieburn, and Tarneit offer house & land packages, while established homes in Fitzroy and Carlton come at higher median property prices. Considering factors like public transport, schools, and future development plans help first-home buyers choose the perfect property.
What you can do: Use property reports, price guides, and real estate agent insights to compare sale prices and find a location that suits your financial situation and lifestyle needs.
#6 Factor in Additional Costs
Beyond the purchase price, buying a home comes with additional costs like stamp duty, land transfer fees, building inspections, and legal documents. First-home buyers should also consider ongoing mortgage repayments, strata fees, and contents insurance to avoid financial strain. Planning for these expenses ensures a smooth property purchase without unexpected surprises.
What you can do: Create a detailed buying budget that includes upfront and ongoing costs, and use stamp duty calculators to estimate your total expenses before making an offer.
#7 Work a Reputable Mortgage Broker
A mortgage broker helps first-home buyers compare loan schemes, find competitive interest rates, and understand their borrowing power. They navigate the complexities of lenders mortgage insurance, government grants, and financing options to match you with the right loan option. With expert guidance, you can avoid pushy sales agents and secure a mortgage that suits your financial situation.
What you can do: Choose a mortgage broker with experience in the Melbourne property market to help you find the best type of loan and maximise available buyer grants.
#8 Conduct Thorough Property Inspections
A building inspection helps identify structural issues, plumbing problems, or pest infestations that may not be visible at first glance. Skipping relevant inspections can lead to thousands of dollars in unexpected repairs post-completion. First-home buyers should review the inspection report carefully before finalising the contract of sale.
What you can do: Hire a qualified inspector to assess the residential property and ensure it meets safety standards before proceeding with the exchange of contracts.
#9 Understand the Legal Process
Buying a home involves complex legal documents, including the contract of sale, land transfer duty paperwork, and body corporate agreements. A conveyancer or solicitor ensures all terms in the contract of sale subject to conditions are fair and protect your interests. Understanding legal requirements helps first-home buyers avoid delays and costly mistakes during the settlement period.
What you can do: Engage a legal expert to review contracts, explain stamp duty obligations, and guide you through the exchange of contracts and financial settlement process.
#10 Stay Informed About Market Trends
The Melbourne property market is constantly changing, with fluctuations in median property prices, sale prices, and buyer demand. Keeping up with property market conditions helps first-home buyers time their purchases wisely and identify the best suburbs for investment properties. Monitoring interest rate movements and government grants ensures you make informed financial decisions.
What you can do: Review property reports, follow real estate agent insights, and track property searches to understand market trends before committing to a purchase.
#11 Be Prepared to Act Quickly
Melbourne’s property market is competitive, and desirable properties often sell fast, especially in high-demand suburbs. First-home buyers with a pre-approved loan, clear buying budget, and financial settlement plan can make swift decisions without delays. Being well-prepared helps you avoid losing the perfect property to proactive buyers.
What you can do: Stay ready by finalising your loan option, reviewing the contract of sale in advance, and working with a mortgage broker to act confidently when the right home becomes available.
#12 Plan for the Future
Buying your first home is a long-term commitment, so consider how your property will fit your future needs. Think about potential family growth, resale value, and nearby infrastructure developments that could impact property prices. Whether choosing a land package, vacant land, or established home, planning ahead ensures your investment remains suitable for years to come.
What you can do: Evaluate the property’s long-term potential, research land developers in the area, and ensure your mortgage repayments align with your financial situation and future goals.
Melbourne Property Market Insights in 2025
Melbourne’s property prices saw steady growth in 2024, with the median house price rising by $16,000 (1.6%) in the December quarter to $1.039 million. Despite fluctuations in the property market, first-home buyers and investors continued to compete for residential property in high-demand areas.
As of February 3, 2025, the median price for all dwellings in Melbourne sits at $772,317. With interest rates stabilising and government grants available, proactive buyers are expected to remain active, keeping property prices strong throughout the year.
Melbourne offers a wide range of property options, from established homes to house & land packages. Suburbs like Elwood, Albert Park, and Parkdale continue to attract first-time buyers due to their affordability, transport links, and growing infrastructure.
Chat with EverLend
Ready to buy your first home in Melbourne? EverLend can help you secure the right loan option and simplify the buying process. Call 03 7036 3356 today!
FAQs
How much deposit do you need for a first home buyer in Victoria?
First-time buyers typically need a 10% to 20% house deposit. A 20% deposit avoids lenders mortgage insurance (LMI).
What is the 25% first home buyer scheme in Victoria?
The Victorian Homebuyer Fund allows eligible buyers to purchase with only a 5% deposit, with the government covering 25% of the purchase price.
What are first-home buyers entitled to in Victoria?
First-home buyers can access the First Home Owner Grant, stamp duty concessions, and Victorian Homebuyer Fund for financial assistance.
What is the average age of first-home buyers in Melbourne?
The average age of first-home buyers in Melbourne is 36 years.
Can first-home buyers avoid stamp duty in Victoria?
Yes, eligible first-home buyers can receive a one-off duty exemption for properties under $600,000.
What suburbs are best for first-home buyers in Melbourne?
Affordable options include Melton, Werribee, Cranbourne, and Epping, offering good infrastructure and lower sale prices.
How do I know if I can afford a mortgage?
Use stamp duty calculators, check your financial commitments, and ensure ongoing mortgage repayments fit your budget.
Final Thoughts
Buying your first home in Melbourne in 2025 is an exciting journey, and the right approach can make all the difference. By understanding your financial situation, researching the property market, and working with a mortgage broker, first-home buyers can confidently step onto the property ladder.
Whether you’re exploring government grants, loan schemes, or the perfect property, expert guidance ensures a smoother buying process. EverLend’s main office is located in St. Kilda; we provide our services across Melbourne, helping clients in every suburb turn their homeownership dreams into reality.
Ready to take the first step towards homeownership? Call us at 03 7036 3356 or visit our website, EverLend, for a free personalised consultation.