The Best Investment You Can Make Starts With a Single Step
Buying your first home in Victoria feels overwhelming — but broken into clear steps, it's absolutely achievable. Whether you're a renter who's ready to stop paying someone else's mortgage, or a young professional who's been saving for years and doesn't know where to start, this guide is for you. Here's everything you need to know before you sign anything.
Step 1: Know Your Grants and Concessions
One of the biggest mistakes first home buyers in Victoria make is not understanding the financial support available to them. The government has made it easier than ever to get into the market — but you have to know what's on offer.
The First Home Owner Grant (FHOG) provides $10,000 for eligible buyers purchasing or building a new home in Victoria. This is a cash grant — not a loan — and it applies to new builds only. If you're considering a brand-new house and land package or a new apartment off-the-plan, this grant could go directly toward your deposit or settlement costs.
The stamp duty exemption for first home buyers in Victoria is equally significant. Buyers purchasing properties valued up to $600,000 pay zero stamp duty — a saving of up to $31,000. For properties valued between $600,000 and $750,000, a concessional rate applies on a sliding scale. This is one of the most overlooked savings in the property buying process, and it can meaningfully reduce the total cash you need at settlement.
The federal First Home Guarantee (previously the First Home Loan Deposit Scheme) allows eligible buyers to purchase a property with as little as a 5% deposit, with the federal government guaranteeing the remaining 15% — meaning you don't need to pay Lenders Mortgage Insurance (LMI). LMI can cost tens of thousands of dollars, so avoiding it is a major financial win. There are limited places available each year, so it's important to check eligibility early and apply through a participating lender.
Step 2: Get Your Finances Sorted
Before you start attending inspections, you need to understand what you can actually borrow. Most lenders use approximately six times your gross annual income as a rough guide for maximum borrowing capacity, though this varies depending on your expenses, existing debts, and the lender's credit policy.
Your target deposit should ideally be between 10% and 20% of the purchase price to avoid LMI and secure a competitive interest rate. However, if you're using the First Home Guarantee, 5% is sufficient. Remember to budget for additional costs beyond the deposit — stamp duty (even with concessions), conveyancing fees, building and pest inspection, and moving costs can add another $5,000–$15,000 to your upfront costs depending on the property.
Getting formal pre-approval before you start inspecting is essential. Pre-approval gives you a clear budget, signals to agents and vendors that you're a serious buyer, and speeds up the process significantly when you find the right property. Most pre-approvals are valid for 90 days and can be renewed.
Step 3: Choose the Right Suburb
With the Victorian property market as competitive as it is, many first home buyers are increasingly looking west and into growth corridors for affordability combined with strong liveability. Suburbs like Tarneit, Laverton, Werribee, and Hoppers Crossing offer strong infrastructure, expanding community facilities, and relative affordability compared to inner-ring suburbs — making them increasingly popular with first-time buyers who need space and value.
Geelong remains a compelling option for those open to regional living. With its thriving arts scene, strong employment market, and direct rail connection to Melbourne, Geelong offers an exceptional lifestyle at a fraction of the price of comparable Melbourne suburbs. First home buyers here can typically access larger blocks and newer properties within budget.
When evaluating a suburb, look beyond the price tag. Consider proximity to employment hubs, public transport, schools, shopping centres, and planned infrastructure. Suburbs with announced government investment — roads, train stations, hospitals — tend to see strong capital growth over the medium to long term.
Step 4: Understand the Buying Process
In Victoria, properties are sold either by private sale or at auction. Understanding the difference is crucial before you start making offers.
In a private sale, you negotiate directly with the vendor (or their agent) and make a formal written offer. Once the offer is accepted, you typically have a cooling-off period of three business days during which you can withdraw from the contract. At auction, there is no cooling-off period — if you're the highest bidder and the reserve is met, you're legally obligated to proceed with the purchase. This means you should always have your finances in order and your due diligence done before bidding at auction.
Always arrange a professional building and pest inspection before committing to a purchase. A qualified inspector will identify structural issues, moisture problems, pest activity, and other defects that may not be visible to the untrained eye. The cost of an inspection ($300–$600) is a small price compared to discovering significant repairs needed after settlement.
Factor all associated costs into your budget: conveyancing fees ($800–$2,000), building and pest inspection, council rates adjustment, water rates adjustment, moving costs, and a buffer for immediate maintenance or repairs. It's also wise to factor in a rate buffer — with variable interest rates subject to change, ensure your budget can accommodate rate increases of 1–2% without financial stress.
Step 5: Don't Do It Alone
The Victorian property market moves quickly, and first home buyers who go it alone often find themselves outcompeted, confused by legal jargon, or making decisions driven by emotion rather than strategy. Working with a property advisor who specialises in the Victorian market can make the difference between buying confidently and waiting another two years.
At JustProp, we specialise in guiding first home buyers from confusion to keys. Our team understands the Victorian market intimately — from grant eligibility to suburb selection to negotiation strategy — and we'll work alongside you at every step to ensure you make the right decision for your budget, your lifestyle, and your long-term financial goals.
Ready to Take Your First Step?
Buying your first home doesn't have to be complicated. With the right guidance, the right suburb, and the right financial strategy, homeownership in Victoria is within reach for everyday Australians.
Book a free consultation with JustProp today and let us help you navigate the journey from renting to owning with clarity and confidence. Your first home is closer than you think.