15 May 2026 First Home Buyer Checklist for South East Melbourne: The 2026 Guide

In 2026, South East Melbourne offers genuine opportunities for first home buyers who know which boxes to tick. Whether you’re looking at units in St Kilda – Windsor or South Yarra, having a clear checklist keeps you focused on what actually matters for approval and avoids the common detours that slow down the process.

The key is understanding which government schemes stack together, how much deposit you really need, and what lenders look for in first home buyer applications. With unit prices starting around $490,000 in some inner suburbs and the stamp duty exemption covering purchases up to $600,000, the numbers can work for buyers who approach it systematically.

EverLend helps first home buyers across South East Melbourne tick every box on their checklist and compare options across 60+ lenders, completely free of charge.

Here’s your complete checklist for buying your first home in South East Melbourne in 2026.

What’s changed for first home buyers in South East Melbourne in 2026?

The biggest shift for first home buyers in South East Melbourne this year is the launch of Help to Buy in December 2025, which adds a federal shared equity option to the existing Victorian schemes. You can now access up to 40% government equity on new homes or 30% on established properties, with a 2% minimum deposit and a $950,000 price cap across South East Melbourne.

The income caps matter though – $100,000 for singles and $160,000 for couples – which means Help to Buy targets specific buyer profiles rather than the broader market. The First Home Guarantee remains the most accessible option for most buyers, requiring just 5% deposit with no income restrictions.

How much deposit do first home buyers actually need in South East Melbourne?

You need as little as 2% deposit if you qualify for Help to Buy, 5% for the First Home Guarantee, or 10-20% if you’re going the traditional route. The scheme you qualify for depends on your income, the property type, and whether you’ve owned property before.

For a $600,000 unit purchase in South East Melbourne, that translates to $12,000 (Help to Buy), $30,000 (First Home Guarantee), or $60,000-$120,000 (traditional loans). Most first home buyers in this market use either the 5% or 2% deposit options rather than waiting to save the larger amount.

Government schemes and grants available to South East Melbourne first home buyers

• First Home Guarantee: 5% deposit, no LMI, up to $950,000 price cap across South East Melbourne.
• Help to Buy: 2% deposit, government takes 30-40% equity stake, income caps of $100,000 single/$160,000 couple, available through CBA and Bank Australia only.
• Victorian First Home Owner Grant: $10,000 for new homes only, up to $750,000 purchase price.
• Victorian stamp duty exemption: full exemption up to $600,000, partial concession $600,001-$750,000, applies to both new and established homes.
• Off-the-plan stamp duty concession: excludes construction costs from dutiable value, expires 20 October 2026, stacks with first home buyer exemption.

How do mortgage brokers help first home buyers get approved in South East Melbourne?

Step 1: Talk to us

Get in touch and we’ll assess your income, deposit, and goals to determine which schemes and lenders give you the strongest position.

Step 2: Check your credit score

We guide you through obtaining your credit report and address any issues that could affect your application before you formally apply.

Step 3: Calculate your borrowing capacity

We assess your income, expenses, and debts across multiple lenders to determine your maximum borrowing capacity and realistic price range.

Step 4: Choose your government schemes

We identify which schemes you qualify for and help you structure the optimal combination – some schemes stack together, others don’t.

Step 5: Get pre-approval

We submit your application to the lender that offers the best terms for your situation, securing conditional approval before you start house hunting.

Step 6: Find your property and finalize

Once you find a property, we coordinate the final approval, valuation, and settlement process with your solicitor to ensure everything proceeds smoothly.

Common mistakes first home buyers make in South East Melbourne

The biggest mistake is shopping for properties before understanding your actual borrowing capacity. Many first home buyers fall in love with a property they can’t afford, or worse, discover at the last minute that they don’t qualify for the scheme they were counting on. Getting pre-approval first saves disappointment and gives you confidence when you’re ready to make an offer.

The second common error is not understanding how the schemes stack. For example, if you use Help to Buy, you can’t also access the First Home Guarantee on the same purchase. If you’re buying an investment property first (rentvesting), you lose eligibility for both the First Home Owner Grant and the First Home Guarantee permanently. These decisions have long-term consequences that aren’t always obvious.

First home buyer suburbs to consider in South East Melbourne

The unit market in South East Melbourne offers the most realistic entry points for first home buyers, particularly in suburbs where medians sit below the $600,000 stamp duty exemption threshold. Several inner suburbs have maintained unit affordability despite house price growth, and the off-the-plan market extends these options further through the construction cost concession.

Your suburb choice affects which schemes you can access and how much stamp duty you’ll pay. In areas like Cheltenham, where house medians reach $1,287,000, units may still offer affordable entry, while premium areas like Toorak push close to the $950,000 scheme caps even for apartments.

• Inner affordability focus: St Kilda units around $490,000, Windsor units $536,375, South Yarra units $547,500 – all below the stamp duty exemption threshold.
• Growth and amenity balance: Port Melbourne, Prahran, St Kilda East offer unit options with proximity to employment and transport.
• Established family areas: Bentleigh, Carnegie, Glen Huntly provide better value for buyers considering future family needs.
• Premium positioning: Toorak units (~$948,000) sit at the scheme price caps but offer prestige and capital growth potential.

Frequently Asked Questions

Can I use the First Home Owner Grant and First Home Guarantee together?

Yes – you can combine the $10,000 FHOG with the 5% deposit First Home Guarantee if you’re buying a new home under $750,000. The schemes have different eligibility criteria but can stack on the same purchase.

How much can first home buyers borrow in South East Melbourne?

Your borrowing capacity depends on your income, existing debts, and living expenses, typically ranging from 4-6 times your gross annual income. The exact amount varies significantly between lenders – which is exactly what we assess for you in a free consultation.

What’s the minimum credit score for first home buyer loans?

Most lenders require a credit score of 600 or higher, though some specialist lenders accept scores from 500. A score above 700 gives you access to the best rates and terms across our lender panel.

Do I need genuine savings or can I use gifted deposits?

Most lenders require at least 5% genuine savings, but gift funds can make up the remainder of your deposit. The First Home Guarantee and Help to Buy both accept gifted funds with proper documentation from your family member.

How long does first home buyer pre-approval take?

Pre-approval typically takes 3-7 business days once we submit your complete application. We handle the paperwork and lender liaison to streamline the process and keep you informed at each stage.

Should I use a mortgage broker or go direct to my bank?

A mortgage broker, every time. Your bank sees you as one application through one lens – we compare how 60+ lenders assess your situation and identify which gives first home buyers the strongest outcome. The service is free to you and often secures better rates than direct applications.

What happens if my first home buyer application gets declined?

Declined applications can often be restructured and re-submitted to different lenders with adjusted loan amounts or documentation. We identify why the decline occurred and present alternative pathways rather than leaving you without options.

Your Next Steps

Getting your first home right in South East Melbourne is about more than finding a property you can afford – it’s about structuring the finance to give you the strongest start. The right scheme combination and lender choice can save you tens of thousands in the first year alone, while the wrong approach can lock you into unnecessary costs for years.

Ready to find out which suburb and scheme combination works best for your deposit and income? Contact Evelyn Clark for a free consultation or call 03 7036 3356. We’ll work through your checklist, compare your options across 60+ lenders, and identify the pathway that gets you into your first home sooner.