Buying your first home in Victoria starts with three numbers: what you've saved, what a lender will lend you, and what the purchase costs on top of the price. Together they set your real budget.
Say you've saved $50,000. Part of that may still need to cover stamp duty, conveyancing, inspections, moving costs and an emergency buffer, so it isn't $50,000 of deposit.
Ask Paul, from the Traj Finance team, what the single biggest factor is in a first home purchase and he doesn't say interest rates or grants. He says this: "Deep down they're the ones who have to believe they can do this. When you're ready, you know you're ready. That's the time to go."
A practical roadmap looks like this:
- Work out your finances
- Check government support
- Prepare your home loan
- Search within your budget
- Review the contract
- Complete settlement
You don't need to know every mortgage term before you start. You need a clear budget and a sensible next step.
1. Work out how much you can afford
Before looking at properties, establish your deposit, your borrowing capacity and the other costs of purchase. That gives you a realistic budget and keeps your search on properties you can actually buy.
Start with your deposit
Your deposit is the amount you contribute towards the purchase price. The right deposit depends on your savings, your loan structure and whether you're eligible for the government schemes below.
Calculate your borrowing capacity
Your borrowing capacity is an estimate of how much a lender may be prepared to lend you, based on your income, expenses, debts and other commitments. Checking it early sets the ceiling on your property budget before you fall in love with a house.
Budget for the costs beyond the deposit
Your deposit is only part of the cash you need. Allow for stamp duty, conveyancing, inspections, loan costs, moving expenses and an emergency buffer.
2. Check first home buyer grants and government support
Government assistance can reduce your upfront costs, but every program has its own eligibility rules. Check the current requirements before you build any grant, concession or scheme into your budget.
The figures in this section are current as at August 2026 and are set by government. They change.
First Home Owner Grant: $10,000
Eligible Victorian first home buyers may qualify for the First Home Owner Grant when buying or building an eligible new home. The grant is $10,000 for an eligible home valued up to $750,000, subject to the relevant requirements.
The catch worth knowing up front is that it applies to a new home: a newly built house, an off-the-plan apartment, or a substantially renovated property that hasn't been lived in before. Buy an established home and the grant doesn't apply, though you may still be eligible for the bigger prize, which is the stamp duty saving.
Stamp duty concessions or exemptions
Eligible first home buyers may receive a stamp duty exemption or concession in Victoria. A full exemption can apply to eligible properties up to $600,000, with a reduced concession available between $600,001 and $750,000.
On a $600,000 purchase, an exemption can be worth in the order of $30,000. The exact figure depends on the property and current State Revenue Office rates, so treat that as an illustration only.
Low deposit government schemes
Eligible buyers may be able to purchase with a 5% deposit under the Australian Government 5% Deposit Scheme without paying lenders mortgage insurance. The guarantee isn't a cash contribution, so you still need to save the required deposit and meet the lender's requirements. Property price caps and other eligibility criteria apply.
The Victorian Homebuyer Fund is closed to new applicants. Check current government programs rather than relying on older information.
Help to Buy
If even a 5% deposit is a stretch, the federal Help to Buy scheme allows eligible buyers to go in with as little as a 2% deposit, with the government taking an equity share in the property. It can contribute up to 30% of the price for an established home and up to 40% for a new one.
First Home Super Saver Scheme
The First Home Super Saver Scheme may allow eligible buyers to put eligible voluntary super contributions towards their first home savings. Contribution and withdrawal rules apply, so check the current requirements with the Australian Taxation Office.
If you're exploring your finance options, see our First Home Buyers guide for more.
Solving the deposit
Grants aside, the deposit is where most first home buyers get stuck. The 5% path covered above gets you in without LMI. A parental gift can top up a deposit, though lenders treat gifted deposits differently.
A guarantor loan is the one that gets people in when the deposit isn't there yet, a parent secures part of your loan against their own property. The upside is real and so is the risk: guarantors may be legally responsible for the amount they guarantee and may be required to obtain independent legal advice before signing loan documents. This is contingent on the lender's requirements and/or the client's experience with loan products.
3. Get your home loan ready
Once you know your deposit and your borrowing position, get your loan sorted before you start house hunting. It sharpens your budget and shows you how different loan options affect your repayments.
What is pre-approval?
Pre-approval indicates how much a lender may be prepared to lend you, based on your financial circumstances. It helps you set a realistic property budget, but it isn't final loan approval.
The lender may still need to assess the property, complete further checks and formally approve the loan before your finance is confirmed.
What lenders look at
Lenders generally assess your income, living expenses, existing debts and other financial commitments.
Overtime, penalty rates, allowances and shift loadings can often be used, and lenders don't all count income the same way. A HECS debt lowers your borrowing capacity, but some lenders will let you clear a small balance as a condition of settlement. If one lender says no, that's very often a no from that lender, not a no from the market.
Your maximum borrowing capacity doesn't have to become your purchase price. A loan that sits comfortably inside your budget is usually more useful than one at the limit of what you can borrow.
How a mortgage broker can help
A mortgage broker can help you compare suitable home loan options and understand deposit requirements, loan features and borrowing limits. That's worth having if you're unsure which options fit your circumstances.
Traj Finance can help you work through your borrowing position and your loan options before you start making offers. See Home Loans or Mortgage Broker in Victoria when you're ready.
4. Start looking for your first home
With your financial position clear, start searching for a property that fits your budget and your longer term needs. Focus on what you need rather than stretching your budget for features you simply like.
Set your must-haves
Separate the essentials from the nice-to-haves: bedrooms, location, transport, schools, outdoor space. Clear priorities make properties easier to compare and make overspending less likely.
Compare locations and property types
Your budget may stretch further depending on the suburb or the property type. Compare houses, townhouses and apartments on both purchase price and ongoing costs, including owners corporation fees where they apply.
Know your maximum budget
Pre-approval helps set your price range, but you don't have to spend to the top of it. Leave room for repayments, unexpected costs and changes in your circumstances.
Setting your own maximum before you start making offers also makes it harder to get emotionally attached to a property you can't comfortably afford.
What to check during inspections
Look past the presentation and consider condition, layout, storage, natural light, noise and any visible damage. Work out whether repairs or improvements would add significantly to your costs.
For practical tips on finding the right property, see our Property Hunting Techniques for First Home Buyers guide.
5. Make an offer and understand the contract
Finding the right property is only part of it. Before you make an offer, understand the sale method, the contract terms and the conditions you're agreeing to.
Private sale vs auction
Private sales generally let you negotiate price and terms with the seller or the agent. Auctions work differently, and an accepted bid can result in an unconditional purchase.
Victoria also has specific cooling-off rules for eligible private residential purchases, with exceptions. Make sure you understand which conditions apply before you commit.
What to check before making an offer
Consider your maximum budget, the property's condition, comparable sales, settlement terms and the contract conditions. Complete any appropriate inspections or due diligence first.
Set your maximum offer before negotiations start. It's much easier to hold a limit you decided on in advance.
Why contract advice matters
Property contracts contain legal terms that aren't obvious to a first home buyer. A conveyancer or solicitor can review the contract and explain the conditions before you sign.
Get independent legal advice rather than relying on the selling agent to explain the contract to you.
6. From accepted offer to settlement
An accepted offer is a milestone, not the finish line. Your finance, the legal work and your settlement arrangements all have to be finalised before ownership transfers.
Finalise your finance
Your lender completes the remaining assessment for your loan. Pre-approval isn't final approval, so the lender may still need to assess the property and complete further checks.
Avoid making major financial changes at this stage without speaking to your lender or broker first. Changes to your debts, your employment or your commitments can affect the application.
Complete conveyancing
Your conveyancer or solicitor manages the legal transfer of the property, including documents, searches and settlement arrangements.
Prepare for settlement
Before settlement, make sure your finance, insurance and payment arrangements are ready. Your conveyancer or solicitor should tell you what needs to be completed and when.
Confirm how much money needs to be available on the day. Keeping your documents and payment arrangements organised avoids last minute problems.
Getting the keys
Once settlement completes, ownership transfers to you and you collect the keys according to the agreed arrangements. That's the final step in turning an accepted offer into your first home.
How much money do you need to buy your first home in Victoria?
There's no single number. What you need depends on the property price, your deposit, the concessions you qualify for and the other costs of purchase.
A practical checklist:
- Deposit
- Stamp duty
- Conveyancing
- Property inspections
- Loan costs
- Moving costs
- Emergency buffer
The purchase price isn't your total cash requirement. Two buyers paying the same price can need very different amounts, depending on their deposits, their concessions and their circumstances.
An eligible buyer purchasing a $600,000 property, for example, may receive a stamp duty exemption, which cuts their upfront cash considerably. Use the Stamp Duty Costs Calculator to estimate your own costs before you make an offer.
First home buyer mistakes to avoid
Buying your first home means making finance and property decisions you've never made before. Knowing where people go wrong makes those decisions easier.
House hunting before you know your budget
Check your borrowing capacity and your available savings before you start seriously looking. That gives you a real price range instead of a hopeful one.
Assuming the deposit is the only upfront cost
Your savings may also need to cover stamp duty, conveyancing, inspections, moving costs and a buffer. Budget for the whole purchase.
Forgetting to check scheme eligibility
Government assistance comes with specific requirements. Check the current rules before you count a grant, concession or scheme as money in hand.
Treating pre-approval as guaranteed finance
Pre-approval indicates your borrowing position. It doesn't guarantee final approval, and the lender may still assess the property and complete further checks.
Taking one lender's no as the market's no
One lender's decision doesn't necessarily mean you can't borrow what you need. Lenders assess income, expenses and other commitments differently, so their lending policies can vary.
For example, one lender may not accept all your overtime or penalty-rate income, while another may assess it differently. If one lender says no, it can be worth understanding why they declined the application and whether another lender may assess your circumstances differently.
Using every dollar of your savings
Don't leave yourself without a buffer after settlement. Repairs and unexpected costs have a habit of arriving in the first few months.
Making an offer without understanding the contract
Understand the contract and its conditions before you sign. If anything is unclear, get advice from a conveyancer or solicitor first.
Your first home buyer checklist
Breaking the purchase into stages makes it manageable. Use this alongside appropriate finance and legal advice.
Before house hunting
- Check your deposit
- Estimate your borrowing capacity
- Calculate potential repayments
- Check government assistance
- Set your maximum budget
- Consider pre-approval
Before making an offer
- Research the property
- Compare the location
- Attend inspections
- Review the contract
- Complete relevant due diligence
- Confirm your finance
- Set your maximum offer
After acceptance
- Finalise your home loan
- Work with your conveyancer
- Arrange insurance
- Confirm settlement details
- Prepare your remaining funds
At settlement
- Complete the property transfer
- Confirm settlement
- Arrange key collection
- Store your important documents
- Prepare for the move
The process varies depending on the property, the loan and the sale arrangement. Treat this as a roadmap, not a replacement for advice on your own circumstances.
First Home Buyer FAQs
How much deposit do I need for my first home in Victoria?
You may be able to buy with less than a 20% deposit. Eligible first home buyers may be able to purchase with a minimum 5% deposit under the Australian Government 5% Deposit Scheme, subject to lender and scheme requirements.
Can my parents help me buy my first home?
Yes. Depending on your circumstances, your parents may help through a gifted deposit or guarantor arrangement. If they act as guarantors, they should get independent legal advice before proceeding.
Do first home buyers pay stamp duty in Victoria?
Eligible first home buyers can receive a full stamp duty exemption on qualifying homes up to $600,000. A concession may apply between $600,001 and $750,000, subject to current eligibility requirements.
What grants are available for first home buyers in Victoria?
Eligible buyers may qualify for the Victorian First Home Owner Grant when buying or building a qualifying new home. The grant is $10,000 for eligible homes valued up to $750,000, subject to requirements.
How much can a first home buyer borrow?
Your borrowing capacity depends on your income, expenses, debts and other financial commitments. Checking it early helps you set a realistic property budget before you start house hunting.
Should I get pre-approval before looking at properties?
Most buyers find it useful. Pre-approval shows you your likely borrowing range and focuses your search. It isn't final approval, and the lender may still need to assess the property and complete further checks.
What are the upfront costs of buying a home?
You may need to budget for your deposit, stamp duty, conveyancing, inspections, loan costs and moving expenses. Your actual costs depend on the property, your circumstances and any concessions you qualify for.
Does a 5% deposit mean the government pays the other 15%?
No. The First Home Guarantee is a government guarantee, not a cash contribution. You still need to save the required deposit and meet the participating lender's eligibility requirements.
Is the Victorian Homebuyer Fund still open?
No. The Victorian Homebuyer Fund is closed to new applicants. If you're looking for government assistance, check current Victorian and Australian Government programs rather than relying on older information.
Ready to take the next step?
Buying your first home gets a lot simpler once you know your deposit, your borrowing capacity and your upfront costs. From there it's a matter of checking what support you're eligible for and getting your finance ready.
If you want to understand your borrowing position and your loan options, Traj Finance can help you work through it. Book an appointment when you're ready.
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This article is general information only and does not take your personal circumstances into account. It is not credit assistance or financial advice. Government grants, schemes, thresholds and figures are current as at August 2026 and are subject to change and to eligibility criteria. Please confirm the current rules and your own eligibility before acting.
Traj Finance Pty Ltd ABN: 55 675 457 495. Credit Representative #558243 is authorised under Australian Credit License #384704
