How to Buy a Home in Melbourne: A Step-by-Step Guide

Buying your first home is an exciting milestone, but the process can feel overwhelming—especially in a competitive market like Melbourne. This step-by-step guide will help simplify the process so you can confidently navigate your journey to homeownership.

Step 1: Determine Your Budget & Borrowing Power

Before house-hunting, it’s crucial to understand how much you can afford. Here’s how to get started:

✔ Assess Your Finances – Review your savings, income, and expenses to calculate a comfortable deposit. A minimum 5% deposit is typically required, but a 20% deposit helps avoid Lenders Mortgage Insurance (LMI).
✔ Check Your Borrowing Capacity – Speak to a mortgage broker or lender to determine how much you can borrow based on your income, debts, and financial history.
✔ Understand Additional Costs – Factor in costs like stamp duty, conveyancing fees, building inspections, and loan application fees.

Step 2: Explore First-Home Buyer Grants & Incentives

Victoria offers several government incentives to help first-time buyers:

🏡 First Home Owner Grant (FHOG) – A $10,000 grant for new homes under $750,000.
🏡 First Home Buyer Stamp Duty Exemptions & Concessions – No stamp duty on properties up to $600,000 and reduced duty on properties up to $750,000.
🏡 First Home Guarantee (FHG) – Allows eligible buyers to purchase with as little as a 5% deposit without paying LMI.
🏡 Shared Equity & Low-Deposit Schemes – Additional government support programs may be available.

Step 3: Get Pre-Approval for a Loan

A pre-approved home loan gives you a clear price range and makes you a stronger buyer in negotiations. To get pre-approved:

✔ Gather necessary documents (payslips, tax returns, bank statements).
✔ Compare lenders and interest rates.
✔ Apply through a bank or mortgage broker.

Step 4: Start Your Property Search

With pre-approval in hand, it’s time to find your dream home:

🔎 Define Your Must-Haves & Preferences – Consider location, property type, number of bedrooms, and lifestyle needs.
🔎 Research the Market – Explore Melbourne suburbs within your budget, checking median prices and growth trends.
🔎 Attend Inspections & Auctions – Visit properties, assess their condition, and get a feel for the market.

Step 5: Make an Offer or Bid at Auction

When you find the right home, the next step depends on the sale type:

📄 Private Sale: Submit a written offer through the real estate agent, negotiate terms, and await the vendor’s response.
🔨 Auction: If buying at auction, set a budget, attend with confidence, and bid strategically.

Step 6: Conduct Inspections & Legal Checks

Before signing contracts, protect yourself by:

✔ Ordering a building and pest inspection to check for defects.
✔ Engaging a conveyancer to review contracts and handle legal paperwork.
✔ Confirming the property’s zoning, title, and any outstanding issues.

Step 7: Secure Your Home Loan & Sign the Contract

Once your offer is accepted:

✔ Finalize your home loan with your lender.
✔ Pay the deposit (usually 10% of the purchase price).
✔ Sign the Contract of Sale, ensuring all conditions are met.

Step 8: Settlement & Moving In

The final step is the settlement period (usually 30–90 days), during which:

✔ Your lender transfers funds to the seller.
✔ You complete a final property inspection.
✔ Keys are handed over, and you officially own your new home!

Final Thoughts
Buying a home in Melbourne can be challenging, but with careful planning and the right guidance, you’ll be in your new home before you know it. If you need help navigating the process, feel free to reach out—I’d love to assist you on your journey to homeownership!
To make buying experience easier, partner with Trusted Buyers Advocate: Contact Adam at Prello Advocacy in Melbourne: 0459 821 764


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