The ultimate first home buyer guide for Victoria (2026)

Buying your first home is one of the biggest financial steps you'll take — and one of the most confusing. Between deposits, government schemes, stamp duty, pre-approval and the buying process itself, it's easy to feel lost before you've even started. This guide walks through it in plain English, step by step, for first home buyers in Victoria and Melbourne's south-east in 2026.

We're a Berwick-based mortgage broker who does this every week, so we've focused on what actually matters: what you need, what help is available, and the order to do things in. One note up front — schemes and thresholds change, so we've dated everything and linked the official sources. Always confirm current details before relying on them. This is general information, not financial or credit advice.

Step 1: Work out what you can borrow

Before you start scrolling through listings, it pays to know your real budget. How much a lender will lend you comes down to your income, your living expenses, and any existing debts — and it varies a lot from lender to lender.

Our borrowing power calculator gives you a quick indicative figure to start with. A few things that move the number more than people expect:

• Credit cards: lenders count your card limit, not your balance — so a barely-used card can still cut your borrowing power. Lowering limits or closing unused cards can help.
• HECS/HELP and other debts: a study debt, car loan or buy-now-pay-later commitment all reduce what you can borrow.
• Genuine savings: many lenders like to see you've saved around 5% of the price yourself over a few months — it's part of how they assess you.

Step 2: Your deposit, genuine savings and LMI

The classic target is a 20% deposit, because that's the point where you avoid Lenders Mortgage Insurance (LMI) — a one-off cost that protects the lender, not you, when you borrow with a smaller deposit. On a $700,000 home, 20% is $140,000, which is a lot to save.

The good news: you don't always need 20%. Plenty of first home buyers get in with 5% — or even 2% through the schemes in the next section — and there are ways to skip LMI entirely. If you are paying LMI, our LMI estimator shows roughly what it would add, and our deposit goal calculator helps you set a target and timeline.

One often-overlooked savings tool is the First Home Super Saver Scheme, which lets you save part of your deposit inside super where it's taxed less (more on it below). It takes a bit of setup, so it's worth knowing about early.

Step 3: Government help — the schemes

This is where first home buyers can get a genuine leg-up. Here are the main schemes available in Victoria as at June 2026 — what they do and roughly who they suit. Eligibility and caps change, so we've linked the official pages; we'll confirm exactly what you qualify for.

The 5% Deposit Scheme (First Home Guarantee)

A federal scheme that lets eligible first home buyers purchase with just a 5% deposit while the government guarantees the rest — so you skip LMI. From 1 October 2025 the old income limits and the cap on the number of places were removed, and the price limits lifted, making it far more widely available than before. In Melbourne and Geelong the property price cap is $950,000 (and $650,000 across the rest of Victoria). It's open to Australian citizens and permanent residents who are buying their first home (or haven't owned Australian property in the last 10 years). Details at firsthomebuyers.gov.au.

Help to Buy (shared equity)

A federal shared-equity scheme, open since December 2025. The government takes an ownership share in your home — up to 40% for a new home or 30% for an established one — which means a smaller loan and a deposit as low as 2%. There are income limits ($100,000 for singles, $160,000 for couples and single parents), a set number of places each year, and the same Victorian price caps ($950,000 Melbourne/Geelong, $650,000 regional). One important catch: Help to Buy is for Australian citizens only — permanent residents aren't eligible (unlike the 5% scheme). Details at firsthomebuyers.gov.au.

First Home Owner Grant (Victoria)

A $10,000 grant for first home buyers buying or building a brand-new home — one less than five years old that hasn't been sold or lived in before — valued up to $750,000. It doesn't apply to established homes. Details at the Victorian State Revenue Office.

Stamp duty savings (Victoria)

First home buyers buying a home to live in pay no stamp duty up to $600,000, with a concession that tapers off on a sliding scale between $600,000 and $750,000 — so the exact saving depends on the price. This applies to both new and established homes; above $750,000, full duty applies. There's also a separate temporary concession for off-the-plan apartments and townhouses, running until 21 April 2027. Our stamp duty & fees calculator gives an estimate for your price, and the SRO has the official calculator.

First Home Super Saver Scheme

A federal scheme that lets you save for your deposit inside super, where contributions are generally taxed less than money in a regular account. You make voluntary contributions and can later withdraw up to $50,000 (plus associated earnings) toward your first home. It needs planning and there are rules on what counts, so set it up early. Details at the ATO.

Family Home Guarantee (single parents)

Single parents and guardians can buy with just a 2% deposit and no LMI under this stream of the 5% Deposit Scheme, with the income and place limits removed from October 2025. You don't have to be a first home buyer to use it — you just can't currently own another property.

Many of these stack. A common first-home combination on a new build is the 5% Deposit Scheme plus the First Home Owner Grant plus the stamp duty concession, with the First Home Super Saver helping fund the deposit. The 5% scheme and Help to Buy are alternatives, though — you'd choose one, not both, for the same purchase. We'll map out which combination leaves you best off.

A couple of things you might still read about online are no longer available: the Victorian Homebuyer Fund closed to new applicants in September 2025, and the standalone Regional First Home Buyer Guarantee was folded into the main 5% scheme. So don't count on either.

Step 4: The costs beyond the deposit

Your deposit isn't the whole picture. Set aside money for the other upfront costs so settlement doesn't catch you short:

• Stamp duty (land transfer duty) — often $0 for first home buyers under $600,000, but budget for it above that.
• Conveyancing or legal fees — usually around $1,000–$2,000.
• Building and pest inspection — a few hundred dollars well spent before you commit.
• Loan and government fees — application, valuation and title registration costs.
• Moving, connections and a buffer for the first few months.

Our upfront cost & stamp duty calculator pulls the main ones together so you can see the full cash you'll need, not just the deposit.

Step 5: Get pre-approved (and how a broker helps)

Pre-approval is a conditional 'yes' from a lender, based on your finances, up to a certain amount. It lets you shop and make offers with confidence, knowing your budget is real — and sellers take you more seriously.

This is where a broker earns their keep. We compare more than 20 lenders, know which ones suit first home buyers, low deposits and the schemes above, and handle the paperwork from application through to settlement. And it's free to you — we're paid by the lender when your loan settles, and we'll always say up front if a fee ever applies. Our first home buyer hub has the quick version of how we help.

Step 6: Choosing the right area

Where you buy shapes both your budget and your day-to-day life. Melbourne's south-east runs from established, leafy suburbs to brand-new growth-corridor estates, so there's a wide spread of prices and lifestyles. As a local broker we work right across the region — see all the areas we serve, from Berwick and Narre Warren to Pakenham, Officer, Clyde and Cranbourne.

For a closer look at the options, our guide to the best suburbs in South-East Melbourne compares prices, growth and who each one suits.

Step 7: Making an offer and settling

Once you find the right place, there are two ways to buy: private sale or auction. In a private sale in Victoria you usually get a 3-business-day cooling-off period; at auction there's no cooling-off, so your finance and checks need to be sorted beforehand. You'll pay a deposit (often 10%) on signing the contract, then settle — typically 30 to 90 days later — when the balance is paid and the home becomes yours.

We coordinate the loan side through to settlement and stay in your corner the whole way, then keep an eye on your loan afterwards so it stays competitive once you've moved in.

First home buyer questions

How much deposit do I need?

A 20% deposit lets you avoid Lenders Mortgage Insurance, but you don't always need it. Many first home buyers get in with 5% through the First Home Guarantee (no LMI), or as little as 2% through Help to Buy or the single-parent stream. You'll also need stamp duty (if any) and upfront costs on top.

What is LMI, and can I avoid it?

Lenders Mortgage Insurance is a one-off cost that protects the lender when you borrow with less than a 20% deposit. You can avoid it with a 20% deposit, or through schemes like the First Home Guarantee that waive it for eligible buyers with as little as 5% down.

Do I have to be an Australian citizen?

It depends on the scheme. The 5% Deposit Scheme (First Home Guarantee) is open to citizens and permanent residents. Help to Buy, however, is for Australian citizens only — permanent residents aren't eligible. We'll check what's open to you.

Do first home buyers pay stamp duty in Victoria?

Eligible first home buyers buying a home to live in pay no stamp duty up to $600,000, with a concession that tapers off between $600,000 and $750,000. Above $750,000, full duty applies. It covers both new and established homes.

Can I get the $10,000 grant for any home?

No — the First Home Owner Grant only applies to a brand-new home (less than five years old and not previously sold or lived in), valued up to $750,000. Established homes don't qualify, though you may still get the stamp duty concession on those.

What is Help to Buy?

A federal shared-equity scheme where the government takes a share in your home (up to 40% new, 30% established) so you need a smaller loan and as little as a 2% deposit. It has income limits and a set number of places, and is for citizens only.

Can I use more than one scheme at once?

Often yes. A common new-build combination is the 5% Deposit Scheme, the First Home Owner Grant and the stamp duty concession, with the First Home Super Saver helping fund the deposit. The 5% scheme and Help to Buy are alternatives, so you'd pick one. We'll work out the best mix for you.

What is the First Home Super Saver Scheme?

It lets you save for your deposit inside super, where it's generally taxed less, then withdraw up to $50,000 (plus earnings) toward your first home. It takes some setup, so it's worth starting early.

How much can I borrow?

That depends on your income, expenses and existing debts, and it varies by lender. Our borrowing power calculator gives an indicative figure; we'll give you an accurate one across more than 20 lenders.

Does HECS or other debt affect my borrowing?

Yes. A HECS/HELP debt, car loan, personal loan or buy-now-pay-later commitment all reduce how much you can borrow, and credit card limits count whether or not you use them.

What credit score do I need?

There's no single magic number. Lenders look at your overall credit conduct — paying bills on time, not having too many recent applications, and managing existing debts well. We can point you to lenders that suit your situation.

How long does pre-approval take, and how long does it last?

It can often be arranged within a few days once we have your details, and it typically lasts around three months. We can refresh it if your search runs longer.

Does it cost anything to use a broker?

No — our service is free to you. We're paid a commission by the lender when your loan settles, and we'll always tell you up front if a fee ever applies.

What if I'm self-employed or on a casual contract?

You still have options. Some lenders are more flexible than others on self-employed income, casual or contract work and shorter job histories — finding the right one is exactly what a broker does.

How much should I budget for costs beyond the deposit?

As a rough guide, allow a few per cent of the price for stamp duty (if any), conveyancing, inspections, loan and government fees, and moving. Our upfront cost calculator brings the main ones together.

Ready to take the first step?

Your first home is closer than it looks once you've got a plan. Start with the numbers, then talk it through with someone who does this every day.

Run your figures with our borrowing power and deposit goal calculators, then book a free chat — we'll map out your path, work out which schemes you qualify for, and compare 20+ lenders to find the right fit. No cost to you, and we'll reply within 4 business hours.

About these figures

Scheme details above are current as at June 2026 and drawn from Housing Australia and firsthomebuyers.gov.au (the 5% Deposit Scheme and Help to Buy), the Victorian State Revenue Office (stamp duty and the First Home Owner Grant) and the ATO (First Home Super Saver). Caps, thresholds and eligibility change over time — check the official pages linked above, or ask us for the current position. This is general information, not financial or credit advice, and it doesn't take your personal circumstances into account.