10 Essential Tips for Buying First Home in Melbourne Without Stress

Buying your first home in Melbourne is an exciting time, but it can also feel overwhelming with rising property prices, hidden costs, and complex mortgage options. Many first-home buyers struggle with saving a house deposit, understanding stamp duty concessions, and choosing the right loan option. 

Without the right guidance, the buying process can be stressful and costly. Mortgage brokers like LM Connect simplify the home loan process by comparing lenders, finding competitive rates, and handling paperwork, making it easier for first-time buyers. 

With expert support, you can focus on finding the perfect property without the hassle. To help you make informed decisions, here are 10 essential tips to guide you through buying your first home in Melbourne.

10 Tips for Buying First Home in Melbourne

To make buying your first home in Melbourne a smooth and stress-free experience, it's essential to plan ahead and understand each step of the process. Here are 10 key tips to help you make informed decisions and avoid common pitfalls.

#1   Assess Your Financial Situation

Review your financial situation, including income, expenses, and financial commitments, to determine your borrowing capacity. A clear buying budget will help with mortgage repayments, house deposit savings, and managing additional costs like land transfer fees and strata fees.

#2   Explore First Home Buyer Assistance Programs in Victoria

Eligible first-home buyers may access government grants, such as the owner grant and stamp duty concessions, to reduce buying costs. The Victorian Homebuyer Fund also helps first-time homebuyers with borrowing power and deposit requirements.

#3   Secure Mortgage Pre-Approval

A pre-approved loan helps set a realistic price range and strengthens your position as a competitive buyer. A mortgage broker can guide you through loan options, loan lenders, and financing options that suit your financial situation.

#4   Research Melbourne’s Suburbs

Look into median property prices, property searches, and sale prices in your preferred suburbs. Consider factors like transport, local amenities, and future developments that may impact property prices and investment properties.

#5  Engage Professional Help

A real estate agent and buyer’s advocate can assist with finding the perfect property and negotiating a fair purchase price. A conveyancer will review the contract of sale and legal documents to ensure a smooth property purchase.

#6  Attend Open Houses and Inspections

Property inspections are a critical step in assessing the condition of an established home, land package, or vacant land. Check the property report, building inspection results, and relevant inspections before making an offer.

#7  Conduct Building and Pest Inspections

A building inspection and pest inspection help identify hidden structural issues that could cost thousands of dollars in repairs. Inspection fees are a small price to pay to avoid major problems after the settlement period.

#8  Understand the Auction Process in Melbourne

Auctions can be competitive, so research price guide estimates, property market conditions, and stamp duty calculators before bidding. Be prepared to pay a deposit in exchange for contracts immediately after a successful bid.

#9  Be Aware of Future Developments

Future projects, such as transport upgrades or new schools, can influence property market conditions and land developers’ plans. Check for planned infrastructure that may impact land tax, property values, and resale potential.

#10  Plan for the Long Term

Think about your future needs, such as family for generations, before choosing a property. Consider mortgage repayments, ongoing mortgage repayments, body corporate fees, and contents insurance to secure your long-term financial stability.

Melbourne Property Market Insights in 2025

The median house price in Melbourne reached $1,039,460 in December 2024, reflecting steady growth in the property market. Established homes and house & land packages continue to drive demand, with property prices varying across different suburbs.

As of January 2025, the median price for all dwellings in Melbourne stands at $774,093, making it a competitive market for first-time buyers and investors. Rising sale prices and a shortage of vacant land have contributed to increased property market conditions.

Melbourne remains a top choice for homebuyers due to its strong infrastructure, employment opportunities, and lifestyle appeal. Suburbs like Narre Warren, Chadstone, and Ferntree Gully are seeing increased demand due to affordability, transport links, and future development plans.

For first-home buyers, navigating the property market can feel overwhelming, but working with a mortgage broker like LM Connect can make the entire buying process easier.

A broker helps secure the best loan option, access government grants, and manage stamp duty concessions while also handling complex paperwork like the contract of sale and loan applications. Their expertise ensures first-time buyers can confidently move forward in their exciting journey to homeownership.

FAQs

How long does it take to buy a house in Melbourne?

The entire buying process can take 6 to 12 weeks, depending on financing, inspections, and settlement period. Auctions can speed up the process, but private sales may take longer.

What costs should first-home buyers budget for?

Aside from the purchase price, buyers should factor in stamp duty, legal fees, mortgage insurance, property inspections, and ongoing mortgage repayments. Additional costs like land transfer fees and strata fees may also apply.

Can first-home buyers buy an investment property?

Yes, but government grants and stamp duty concessions are typically for owner-occupiers. If buying as an investment, first-time buyers may not qualify for first-home buyer assistance programs.

Is it better to buy an established home or a house & land package?

An established home offers convenience and faster settlement, while a house & land package provides customisation but may involve a longer building process. Each option has different financial and lifestyle benefits.

How much deposit do you need for a first home buyer in Victoria?

A minimum 5% house deposit is required, but deposits under 20% may need lenders mortgage insurance. Some buyers may qualify for government schemes reducing the deposit amount needed.

What is the 25% first home buyer scheme in Victoria?

The Victorian Homebuyer Fund allows eligible buyers to co-own with the government, reducing mortgage repayments. The government provides up to 25% of the purchase price, lowering loan amounts.

What are first-home buyers entitled to in Victoria?

They may receive a $10,000 first home owner grant, stamp duty concessions, and access to federal and state government assistance programs. Eligibility depends on factors like property price and residency status.

Final Thoughts

Buying your first home in Melbourne in 2025 is an exciting journey, but proper planning and expert guidance can make the process smoother and more rewarding. Understanding stamp duty concessions, loan options, and government grants will help first-home buyers make informed decisions. 

Working with a mortgage broker ensures you get the best financing options while simplifying paperwork and settlement requirements. With property prices continuing to rise, acting now can help you get ahead in the market. 

LM Connect offers a free consultation to guide you through every step of the home loan process. Call 0423 713 362 or visit www.lmconnect.com.au to get started today!