This is for people renting in Melbourne's west who want to buy their first home and don't know how close they are. Talking to me costs nothing, the lender pays me and not you, and most people go from first call to pre-approval in about two weeks.
Below is the whole process, in order, with the Victorian numbers as they stand at 19 August 2026.
Last updated: 19 August 2026. Victorian thresholds and grant amounts are checked against the State Revenue Office and Housing Australia each quarter.
The process, in order
Step 1
Work out what you've actually got
Add up your savings, then subtract about 5% of the purchase price for the costs that are not the deposit — stamp duty, conveyancing, inspections and adjustments.
A genuine savings history matters as much as the balance: most lenders want to see that 5% of the price has sat in your account, or been paid as rent, for three months or more. Gifts from family are usually fine, but they need a letter saying the money is a gift and not a loan.
Money in a first home savings account, shares you are willing to sell, and a car you own outright all count towards your position. A car loan or a buy-now-pay-later account does not — those reduce what you can borrow.
There are four, and most first home buyers in Melbourne's west qualify for at least two.
An eligible first home buyer in Victoria pays no stamp duty on a home priced up to $600,000. Between $600,000 and $750,000 you pay a reduced amount that rises as the price rises; above $750,000 you pay the full duty like anybody else.
The First Home Owner Grant is $10,000 for a newly built home valued up to $750,000. It does not apply to an established house, no matter what the price is — this is the single most common thing people get wrong.
The First Home Guarantee lets you buy with a 5% deposit and pay no lenders mortgage insurance, on a property up to $950,000 in Melbourne. From 1 January 2026 there is no income cap and no limit on places.
Help to Buy is a shared-equity scheme: you contribute a 2% deposit and the government takes an equity share of up to 30% on an established home or 40% on a new one, with income caps of $100,000 for a single buyer and $160,000 for a couple. You own a smaller share of the home, and you buy the government out later.
Lenders do not assess you at the advertised rate — they add a buffer of 3% and check you could still make the repayments, so a 6.1% loan is tested at about 9.1%.
Your borrowing power comes down to income after tax, minus living expenses, minus every existing commitment. A credit card counts against you at roughly 3.8% of its limit every month whether you owe anything or not, so a $10,000 card you never use costs you around $50,000 of borrowing power. Cancelling it before you apply is usually the fastest win available to you.
Different lenders reach genuinely different numbers on the same income — casual income, overtime, HECS and how they count your rent all vary. That difference is most of what a broker is for.
Decide what you can afford, which is a different number
What you can borrow is the lender's maximum; what you can afford is the repayment you would still be comfortable making if rates rose 2%.
Work out the repayment at today's rate, then work it out again 2% higher, and ask whether the second number would change how you live. Borrowing your full maximum is allowed, common, and the reason a lot of people find the first two years harder than they expected.
Add the running costs that a rental does not have: council rates, water, building insurance, and body corporate fees if you buy an apartment. Budget $3,000 to $5,000 a year for a house in Melbourne's west.
Pre-approval is a lender's conditional agreement to lend you up to a set amount, it usually lasts 3 to 6 months, and you should have it before you go to a single open home.
From our first call to a pre-approval in your hand is about two weeks for most people. You will need photo ID, your last two payslips, three months of bank statements, and details of any debts.
Pre-approval is not a guarantee. The lender still values the property and re-checks your circumstances before formal approval, which is why changing jobs or buying a car between pre-approval and settlement can undo it.
Engage a conveyancer or solicitor before you offer on anything, because somebody has to read the contract and the Section 32 statement before you sign, not after.
Conveyancing costs roughly $1,200 to $2,500 in Victoria. The Section 32 is the vendor's disclosure statement — it covers easements, owners corporation fees, planning overlays and outstanding rates, and it is where the expensive surprises are found.
A private-sale contract can be made subject to finance and to a building and pest inspection. Your conveyancer writes those conditions in. They are worth far more than they cost.
Step 7
Private sale or auction
There is no cooling-off period when you buy at auction, so the sale is final and cannot be made subject to finance or to a building and pest inspection.
That means everything has to be done before the auction: unconditional finance, the contract reviewed, and the building and pest inspection paid for on a property you may not win. If your finance falls over after the hammer drops, you can lose your deposit — usually 10% of the price — and be sued for the shortfall.
A private sale gives you a 3-business-day cooling-off period and lets you make the offer conditional on finance. If you are buying your first home, a private sale is the lower-risk path, and in Melbourne's west there are plenty of them.
Step 8
Settlement and keys
Settlement in Victoria is usually 30 to 90 days after the contract is signed, and you get the keys on the day it happens.
Stamp duty is a one-off state government property-transfer tax, and where duty is payable it is handled at settlement by your conveyancer. Do a final inspection in the week before, so anything broken is the vendor's problem rather than yours.
Your first repayment is generally due about a month after settlement, and your lender will confirm the exact date in writing.
No. A 20% deposit avoids lenders mortgage insurance, but you can buy with 5% through the First Home Guarantee and pay no insurance either, on a property up to $950,000 in Melbourne.
Can I buy a house with a 5% deposit?
Yes. Under the First Home Guarantee an eligible first home buyer can buy with a 5% deposit and no lenders mortgage insurance, on a property up to $950,000 in Melbourne. From 1 January 2026 there is no income cap and no cap on the number of places.
Do first home buyers pay stamp duty in Victoria?
Not on a home priced up to $600,000 — an eligible first home buyer pays no stamp duty at all. Between $600,000 and $750,000 you pay a reduced amount, and above $750,000 you pay the full rate.
Do I get the $10,000 grant if I buy an existing house?
No. The First Home Owner Grant is $10,000 and applies only to a newly built home valued up to $750,000. An established house does not qualify, at any price.
How much can I borrow on a $90,000 salary?
A single buyer on $90,000 with no debts can typically borrow somewhere between $450,000 and $520,000, depending on the lender and your living expenses. The spread between lenders on the same income is routinely $70,000 or more, which is why it is worth checking more than one.
Does HECS affect how much I can borrow?
Yes. Your compulsory HECS-HELP repayment is treated as an ongoing commitment, so a $67,000 income with a HECS debt reduces borrowing power by roughly $30,000 to $50,000. If your balance is small enough to clear before you apply, paying it out often gets that back.
Do I have to pay a mortgage broker?
Not with me — first home buyers pay me nothing. The lender pays a commission when your loan settles, and by law I have to act in your best interests regardless of which lender that is.
How long does pre-approval last?
Usually 3 to 6 months. It can be renewed, but the lender re-checks your income and your debts when you renew, so it is not automatic.
Can I buy a house on one income?
Yes, and a lot of people in Melbourne's west do. On a single income of about $90,000 with a 5% deposit, a $500,000 house in Melton, Wyndham Vale or Werribee is realistic today.
What happens if I win at auction and my finance falls through?
You are still legally bound to buy, because an auction has no cooling-off period and no finance clause. You can lose your deposit — typically 10% of the price — and be pursued for any shortfall if the vendor resells for less, which is why finance must be unconditional before you raise your hand.
How much money do I need on top of the deposit?
Budget about 5% of the purchase price for everything that is not the deposit. On a $600,000 home in Victoria, where a first home buyer pays no stamp duty, that is roughly $3,000 to $6,000 — conveyancing at $1,200 to $2,500, a building and pest inspection at $400 to $800, and the rest in bank fees, insurance and council rate adjustments.
Which suburbs in Melbourne's west can I actually afford?
On a $500,000 budget, Melton (median about $480,000), Brookfield (about $510,000) and Wyndham Vale (about $520,000) are in reach today. At $550,000 to $600,000 you add Hoppers Crossing, Werribee, Truganina, Tarneit and Deer Park; from about $650,000, Caroline Springs and Point Cook; and from about $720,000, Sunshine. Footscray (about $850,000), Yarraville (about $1,100,000) and Williamstown (about $1,250,000) are generally out of first home buyer range on a single income.
Last updated: 19 August 2026.
Three people I helped recently
Deposits and timeframes are real. Details are kept vague on purpose — these are people's finances, not marketing material.
A single mum on one income
Bought a $600,000 home with a 5% deposit, five weeks from our first call.
A young couple
Bought with a 10% deposit, about a month from our first call.
A single first home buyer
Bought with a 5% deposit, five weeks from our first call.
Every loan is assessed on its own merits — these are examples, not a prediction of what you can borrow.
Who wrote this
I'm Jacob Williams, a mortgage broker with Alliance Financial Group Pty Ltd in Yarraville. I've been broking for over 7 years and settled over 100 first home buyers in the last year alone. I have access to over 80 lenders, and first home buyers pay me nothing — the lender pays a commission when your loan settles. I built this site because the same questions came up in every first conversation, so the answers may as well be free and public.
Credit Representative 570865 of Alliance Financial Group Pty Ltd ACN 123 511 848, Australian Credit Licence 390664.
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General advice only
The information on this page is general in nature and does not take your objectives, financial situation or needs into account. Figures are indicative, current at 19 August 2026, and subject to change — confirm grant and duty amounts with the State Revenue Office and your own adviser before you rely on them. Lending criteria, fees and charges apply.