First home buyers · Victoria
Buying your first home comes with a steep learning curve: how the process works, what it really costs, and what happens between pre-approval, an offer or auction, and settlement. These are the missteps we see most often from first home buyers in Victoria, and how to avoid them.
By Russell Carter, Partnerships Manager at Goodlend. Last reviewed 22 October 2026.
1. House hunting without pre-approval
Falling for a home before you know your borrowing power can mean wasted Saturday mornings and disappointment. Pre-approval gives you a working budget and shows sellers you’re ready to go. It’s conditional, though: it typically lasts 3 to 6 months and doesn’t guarantee you the loan. Our pre-approval guide explains what to prepare.
Have you thought about this?
If you’re using the 5% Deposit Scheme, the clock starts at pre-approval: you have 90 days to find a home and sign a contract. Line up your conveyancer and inspections early.
2. Forgetting the upfront costs
Your deposit is only part of the cash you’ll need. Before you set your price range, budget for these. Tap or hover over each one for the detail.
Paid on the purchase. Eligible first home buyers in Victoria pay no duty up to $600,000 and reduced duty up to $750,000.
Checks the contract and the Section 32 before you sign, and handles settlement.
Arrange it before you commit. It is harder to add conditions if you buy at auction.
Usually applies if your deposit is under 20%. Ask whether it is paid upfront or added to the loan.
Get quotes early so cover is ready for settlement day.
Your share of council and water rates the seller has already paid.
Removalists, connecting utilities, and council rates once the home is yours.
Something always costs more than the quote. Keep some cash aside for it.
3. Taking the first loan you’re offered
Some first home buyers accept the first offer from their bank without looking at the options. The right loan depends on your income, goals and circumstances. Ask how fixed, variable and split loans work, what features like an offset account or redraw cost, and how to prepare your application. Our guide to fixed and variable home loans covers the basics.
4. Only talking to one lender
Going straight to one bank limits what you see. Lenders have different products and lending policies: one may be more comfortable with contract or variable income than another. At Goodlend we compare loans from over 30 lenders, looking at features and lender policies as well as interest rates.
5. Not checking which government help applies
Victoria and the federal government both offer help for first home buyers, and the rules change often. Our first home buyer page walks through the whole process.
Three ways the government helps
First home buyer duty exemption or concession
For a home you'll live in. Reduced duty from $600,001 to $750,000.
- Reduced duty from $600,001 to $750,000
- Live in the home for 12 continuous months, starting within 12 months of settlement
- You can only claim it once
First Home Owner Grant
For newly built or never-occupied homes valued up to $750,000.
- For a newly built or never-occupied home valued up to $750,000
- Live in it for at least 12 months, starting within 12 months of settlement or of construction finishing
Off-the-plan duty concession
Off-the-plan apartments, units and townhouses. Open to all buyers.
- A temporary concession for off-the-plan apartments, units and townhouses in a strata subdivision
- Open to all buyers, not just first home buyers
- A separate standard concession applies to some buyers who'll live in the home
Three ways the government helps
5% Deposit Scheme
Price caps apply: $950,000 in Melbourne and Geelong.
- 2% for eligible single parents and legal guardians
- Since 1 October 2025: no income caps, no waitlists, no Lenders Mortgage Insurance
- Price cap $950,000 in Melbourne and Geelong, $650,000 in the rest of Victoria
- Apply through a participating lender; once pre-approved, you have 90 days to find a home and sign a contract
Help to Buy
The government owns a share of your home. Income and price caps apply.
- A shared equity scheme: the government contributes up to 30% of the price of an existing home, or 40% of a new one, and holds that share of the home
- It shares in any gain or loss when you sell, and you can buy back some or all of its share over time
- Income caps: $103,000 for individuals, $165,000 for joint applicants and single parents
- Price cap $950,000 in Melbourne and Geelong, $650,000 in the rest of Victoria
- 10,000 places a year, through a participating lender
First Home Super Saver Scheme
Saved through eligible contributions into your super.
- Save part of your deposit inside super through eligible contributions
- We don't give tax advice, so check the rules on the official page
6. Skipping the owners corporation paperwork on an apartment
An apartment or townhouse usually comes with an owners corporation: fees, possible special levies and building records worth reading before you commit. Consumer Affairs Victoria’s apartment checklist shows what to ask for. This matters in suburbs like Footscray, where the 2021 Census found more than half of homes are flats or apartments (see our Footscray and inner west page).
7. Not having the contract checked
Have a conveyancer or solicitor check the contract and the Section 32 vendor statement before you sign or bid, and arrange a building and pest inspection before you commit. Consumer Affairs Victoria’s due diligence checklist is a good start.
How Goodlend helps first home buyers
We take the time to understand what matters to you and walk you through each stage, from your borrowing power and comparing lenders to government schemes, paperwork and settlement. If your circumstances change along the way, such as a new job or new savings, we work through what that means for your application.
You don’t pay us a fee. Lenders pay us a commission when your loan settles, and we’ll show you upfront how we’re paid. Part of our commission goes to a charity you choose, through Shout for Good.
Goodlend mortgage brokers
Buying your first home? Let us make the next step clearer.
Start with a conversation about your budget, timing and what to prepare. Our first home buyer page walks through the whole process.
General information only. This article doesn’t take into account your objectives, financial situation or needs, and it isn’t credit advice. Any home loan is subject to lender approval and conditions.
Goodlend Mortgage Brokers is a trading name of Gariwed Falls Pty Ltd (ACN 682 875 798) ATF Holvor Investments Unit Trust No. 1, credit representative 556461 of Connective Credit Services Pty Ltd (ACL 389328).
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