Your 8-step checklist for buying a home in Victoria

If you're planning to buy a house in Melbourne or regional Victoria, you'll quickly discover that the property buying process here has its own unique rules and requirements.

The Victorian property market has unique rules around legal documentation and auctions that you must understand before you start house hunting. Whether you're looking for an inner-city apartment in Melbourne or a family home in regional Victoria, being prepared is crucial. 

This checklist breaks down the key steps to buying a house in Melbourne and across regional Victoria. From finance and grants to inspections and settlement, here’s how to move through each stage with confidence.

Phase 1: Financial and eligibility prep

The first phase is about getting your finances in order and understanding what you can afford. This groundwork is especially important in Victoria, where auctions are common and decisions need to be made quickly.

✅ Step 1: Determine your borrowing capacity and get pre-approval

Before you start scrolling through property listings, you need to know your budget. A Loan Market mortgage broker can help you calculate your borrowing capacity based on your income, expenses and deposit.

A mortgage broker can also help you compare loan options across multiple lenders and find one suited to your needs. We'll guide you through the application process and explain how different factors – such as interest rates, loan features and repayment structures – might affect your borrowing capacity.

In addition to outlining your borrowing capacity, getting pre-approval is an essential step to take early on in the homebuying process. When you buy in Victoria, you must be ready to move fast—especially in competitive "middle-ring" markets where infrastructure upgrades are driving rapid value increases.

It is a good idea to read our Carnegie property growth forecast, which explores why this inner-Melbourne hub outperformed the broader market in 2025 and how its high-value "blue-chip" status is set to drive further gains through 2026.

Pre-approval involves a lender assessing your financial situation to determine how much they're willing to lend you. This isn't just a rough estimate. It's a conditional commitment that gives you a clear spending limit and shows sellers and agents that you're a serious buyer.

When you buy in Victoria, you must be ready to move fast. Apply for pre-approval before you do anything else.

✅ Step 2: Check grants and stamp duty concessions

Victoria offers several incentives for eligible buyers, particularly first home buyers. Understanding what you qualify for can significantly reduce your upfront costs.

• First Home Owner Grant (FHOG): If you're buying or building a new home, you may be eligible for a $10,000 grant. To qualify, the property must be valued up to $750,000 and you must be a first home buyer who hasn't previously owned property in Australia.
• VIC stamp duty exemption: Victoria provides substantial stamp duty concessions for some buyers. For example, if you’re buying your first home and you intend to live in it as your primary place of residence, you may be eligible for a once-off exemption if your property is worth up to $600,000 or a concession if your property is valued between $600,000 and $750,000. 

If you are buying a home off-the-plan, you may qualify for the temporary off-the-plan stamp duty concessions.

Pensioners also qualify for VIC stamp duty exemptions or concessions.

These concessions can save you thousands of dollars, so it's worth checking your eligibility early in the process. 

Speak to your mortgage broker about which grants and concessions apply to your situation.

If you decide to build your new home instead of buying an established property, your loan works differently. It is a good idea to read our full guide on how progress payments work with a Melbourne construction loan.

✅ Step 3: Calculate your upfront costs

Beyond the property price, you'll need to budget for several upfront costs. They can include:

• Stamp duty: Unless you're eligible for a VIC stamp duty exemption or concession, stamp duty is one of your largest upfront expenses.
• Conveyancing fees: You'll need a conveyancer or solicitor to handle the legal aspects of your purchase. 
• Lender’s mortgage insurance (LMI): If your deposit is less than 20% of the property value, most lenders will require you to pay LMI. This protects the lender if you default on the loan. The cost varies depending on your deposit size and loan amount, but it can be several thousand dollars.
• Building and pest inspection reports: These are essential due diligence costs (see Step 6 for more).

Having a clear picture of these costs early on will help you avoid surprises later in the process.

These can add up quickly, so it's important to factor them into your financial planning. 

Phase 2: Property search and due diligence

Once your finance is ready, you can start your property search. These steps focus on the critical legal and inspection requirements that are unique to the Victorian property buying process.

✅ Step 4: Engage experts

The Victoria property buying process involves several legal steps, so it’s smart to engage a conveyancer or solicitor early. They can review documents, explain key terms and guide you through the legal requirements.

You’ll also need to find a reputable building inspector who can conduct pre-purchase inspections, sometimes at short notice. This is particularly important if you're considering bidding at auction, where inspections must be completed before auction day.

You will also need to review the Statement of Information that all agents are required to provide. This document includes an indicative selling price and comparable sales.

Don't wait until you've found a property to assemble your team. Engaging professionals early means they're ready to act quickly when you need them.

✅ Step 5: Review the Section 32 (Vendor Statement)

The Section 32 vendor statement is a critical legal document that's unique to the Victoria property buying process. Every seller in Victoria must provide this document before you sign a contract.

The Section 32 vendor statement contains essential information about the property, including:

• Title details and property boundaries
• Easements, covenants or restrictions on the land
• Zoning information
• Outstanding rates and charges
• Building permits and planning approvals.

This document protects you by ensuring you have all the facts before committing to a purchase. Your conveyancer will review the Section 32 to identify any issues that could affect your ownership or future plans for the property.

For auction purchases, request the Section 32 vendor statement as early as possible. 

You won't have a cooling-off period after winning an auction, so all your due diligence – including reviewing the Section 32 vendor statement – must be completed beforehand.

✅ Step 6: Conduct your inspections

Building and pest inspections can uncover structural issues, pest damage or safety hazards that aren't visible to the untrained eye.

For private sales, you might conduct inspections during the cooling-off period. However, for auctions, you must complete all inspections before auction day. Remember, once you win an auction and sign the contract, you're committed to the purchase regardless of what an inspection might later reveal.

If an inspection identifies problems, you can use this information to negotiate a lower price in a private sale or decide not to bid at auction.

Never skip the building and pest inspection, even if the property looks perfect. 

Phase 3: Purchase and settlement

You've found the right property and completed your due diligence. Now it's time to make your move.

✅ Step 7: Make your offer or bid

How you proceed depends on whether you're buying at a private sale or auction.

Private sale: You or your agent will negotiate with the seller to agree on a price. Once you reach an agreement, you'll sign a contract of sale. In most private sales, you'll have a three-business-day cooling-off period. During this time, you can withdraw from the purchase, though you may forfeit a small percentage of the purchase price.

Use the cooling-off period wisely. It's your final opportunity to complete any outstanding inspections or finalise your finance arrangements. 

Don't rely on the cooling-off as your primary due diligence period – aim to have everything sorted before you sign.

Auction: The buying at auction in Victoria rules are strict. One big difference is that there is no cooling-off period when you buy at auction. If you're the winning bidder, you'll sign the contract and pay a deposit (usually 10% of the purchase price) immediately. This makes auctions binding and non-negotiable, which is why pre-auction preparation is so important.

Before bidding at auction, make sure you have:

• Unconditional finance pre-approval
• A reviewed Section 32 vendor statement
• Completed building and pest inspections
• A clear understanding of your maximum bid.

✅ Step 8: Finalise loan and settle

After signing the contract, provide it to your mortgage broker immediately. We'll work to convert your pre-approval into final loan approval, which typically requires a property valuation and final documentation.

Your conveyancer will take care of the final legal steps, which are typically completed online through PEXA (Property Exchange Australia). This involves:

• Calculating final adjustments for council rates and water.
• Arranging for the transfer of the title.
• Ensuring the necessary stamp duty is paid.

On settlement day, the lender releases the funds, the deposit is released to the seller and the title is officially transferred to your name.

Ready to start your Victorian property journey?

The steps to buying a house in Melbourne and across Victoria include some unique legal and financial stages. Every property purchase is unique, and having expert guidance can make the process significantly smoother. A Loan Market broker can help you understand your options and guide you through every stage of the Victoria property buying process.

We can help you determine your borrowing capacity, check your eligibility for Victorian grants and stamp duty concessions, and find a loan suited to your needs. With the right financial foundation, you'll be ready to move quickly when you find your ideal Victorian home.

Contact a Loan Market broker in Carnegie, Ferntree Gully, Forest Hill, Rosebud or Langwarrin today.