First Home Buyer Checklist South East Melbourne, Your Plain-English Guide
Buying your first home in South East Melbourne is one of the most layered financial decisions you'll make, and the gap between knowing what to do and knowing what lenders actually need is where most first-timers lose time, money or both. Whether you're saving toward a unit in Bentleigh, stretching for a townhouse in Cheltenham, or eyeing an apartment in Windsor, the process is the same, but the numbers behind it shift suburb by suburb.
The good news is that a clear checklist makes it manageable. The $10,000 First Home Owner Grant, the duty exemption up to $600,000, and the federal 5% Deposit Scheme each cut what you need to bring to the table, and several of them stack. What they don't do is tell you whether your income, savings history and credit position are set up to get a lender's yes.
Our team helps first home buyers across South East Melbourne work through exactly this, comparing across 60+ lenders to find the structure that fits the deposit, income and timeline they actually have.
Key takeaways
- Every approved suburb's house median sits above the $950,000 scheme cap.
- The $10,000 FHOG applies to new homes only, capped at $750,000.
- First home buying in South East Melbourne is almost always a unit story.
What does a first home buyer checklist in South East Melbourne actually cover?
A first home buyer checklist covers the three things that decide whether your application gets approved: your deposit position, your borrowing capacity, and whether your documents tell the story lenders need to hear. In South East Melbourne, there's a fourth item that trips more buyers than any other: understanding that every house median in the area sits above the $950,000 scheme cap, so the practical entry point is units and apartments, not freestanding homes.
Most first home buyers I talk to have done a lot of research on the grant and the stamp duty, but haven't yet worked out whether their savings history, income and credit file are in the shape lenders want to see. Those three things are what actually decide timing, and getting them right before you start applying is the whole game.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
What government schemes can first home buyers use in South East Melbourne?
Four schemes are worth knowing. Eligibility runs on your income, your savings position and the property price, not on a points system.
The schemes that apply here:
- › First Home Owner Grant:$10,000 cash, new homes only, price capped at $750,000. You must move in within 12 months and live there for at least 12 months. In South East Melbourne this is an off-the-plan unit story, because no established house sits under $750,000.
- › First Home Buyer Duty Exemption: full exemption from transfer duty on properties up to $600,000, with a partial concession tapering to $750,000. New and established homes both qualify. Victoria applies the same rules to both, so your eligibility turns on the purchase price, not the property type.
- › First Home Guarantee (5% Deposit Scheme): buy with a 5% deposit and the government guarantees up to 15%, so you avoid LMI entirely. No income cap since October 2025. The South East Melbourne price cap is $950,000, confirmed across all 28 approved postcodes.
- › Help to Buy (federal shared equity): the government co-owns up to 30% of an existing home or 40% of a new build. Income caps apply: $103,000 for singles and $165,000 for couples or single parents in 2026-27. The South East Melbourne price cap is $950,000. This scheme cannot be combined with a state shared-equity scheme, though it can be used alongside the FHOG and the duty exemption.
The Victorian Homebuyer Fund is closed to new participants. Help to Buy is the only shared-equity pathway currently open to South East Melbourne buyers.
Source: State Revenue Office Victoria and Housing Australia.
How much deposit do first home buyers in South East Melbourne actually need?
CoreLogic data shows unit medians running from $470,000 in Ripponlea to $935,000 in Bentleigh across the approved suburbs. That range defines what a deposit actually looks like here, and it varies considerably depending on which suburb, which scheme and whether you're buying new or established.
The deposit routes worth weighing:
- › 5% Deposit Scheme: 5% deposit · LMI waived by the government guarantee · $950,000 price cap · no income test · limited places available each year
- › Standard 10% deposit with LMI: 10% deposit · LMI premium added to the loan · no price cap · open to any buyer · premium typically $14,000 to $19,500 on a loan of this size
- › Guarantor loan: can reduce effective deposit to zero · no LMI · parents' equity used as the security gap · no price cap · independent legal advice mandatory for the guarantor
- › Help to Buy (shared equity): 2% deposit · government co-purchases up to 30-40% · $950,000 cap · income threshold applies · participating lenders only
For most first home buyers in South East Melbourne, the 5% Deposit Scheme is the strongest starting point where places are available, because it eliminates LMI without tying in a co-owner or a guarantor.
Source: CoreLogic (via YIP, June 2026) and Housing Australia.
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How do lenders assess first home buyers in South East Melbourne?
You're assessed the same way as any borrower, but what changes is which parts of your financial picture carry the most weight. Lenders run your income through APRA's 3.0% serviceability buffer on top of the actual rate, which means they test whether you could meet repayments at an assessment rate of roughly 9% rather than the rate you'll actually pay. That single calculation is what determines your maximum loan size.
What income and savings lenders look at
What lenders are checking:
- › Genuine savings: most lenders want at least 5% of the purchase price held in a savings account for three months or more. A gifted deposit or a First Home Super Saver Scheme withdrawal may count, but needs to be structured correctly.
- › Credit card limits: lenders assess your credit card at roughly 3% to 3.8% of the limit per month, regardless of your balance. A $10,000 limit you never touch still reduces what you can borrow.
- › HECS/HELP debt: the compulsory repayment is counted as an ongoing commitment, which reduces borrowing capacity. The repayment, not the balance, is what lenders add to your commitments.
- › Buy now pay later: Afterpay and similar services appear on bank statements and are treated as commitments by most lenders, even if the balance is small. Close accounts you're not using before you apply.
Source: APRA.
When does the first home buyer path not make sense?
The first home buyer concessions are worth real money, but there are situations where chasing them costs you more than they save. The most common is buying a property you don't actually want, just to stay under the $600,000 duty threshold, and then upgrading within two years. The stamp duty you avoided on the first purchase doesn't come back, but you'll pay full duty on the second. If your genuine property is above $750,000, it's usually cleaner to buy the right one and factor in the full duty cost from the start.
Rentvesting is the other fork. If you buy an investment property before your own home, you lose your FHOG eligibility and your First Home Guarantee access entirely. Once you've owned a residential property, you're not a first home buyer for any scheme. Worth knowing before you decide which purchase comes first.
How does a mortgage broker help first home buyers in South East Melbourne?
The lender choice matters more than most first home buyers realise. Three policy differences move the outcome here, and they're not published anywhere in a way that's easy to compare.
- › Genuine savings interpretation: some lenders count a First Home Super Saver Scheme withdrawal as genuine savings; others don't. The difference between those two positions is often whether a 5% deposit application flies or doesn't.
- › High-density postcode treatment: some inner South East Melbourne postcodes attract LVR caps or outright restrictions at certain lenders, particularly for apartments under 50 square metres. Knowing which lenders don't apply those restrictions is the whole task.
- › Scheme place allocation: the 5% Deposit Scheme runs to annual place limits at each participating lender. Which lenders still have places when you're ready to apply is something a broker tracks across the panel, not something you can look up yourself.
Comparing across a panel of lenders finds those differences. Applying to one lender, even the right one, leaves them invisible.
Where I'd focus first is getting the savings history right before anything else. A lot of first home buyers start looking at properties before their savings pattern is in the shape lenders want to see. Three months of consistent, documented saving in a single account changes the application, and it costs nothing except time to get there.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
What approval challenges do first home buyers face in South East Melbourne?
The hurdles worth preparing for:
- › Savings pattern, not savings amount: a lump sum from a family gift looks different to a lender than three months of regular transfers. Document where every dollar came from and when it arrived.
- › Applying to multiple lenders: each application leaves a credit enquiry on your file, and multiple enquiries in a short window reduce your score. Compare through a broker first, then apply once to the right lender.
- › Off-the-plan valuation risk: the bank values the property at completion, not at the contract date. If the market softens between signing and settlement, a valuation shortfall means you cover the difference in cash or renegotiate.
- › Scheme place timing: First Home Guarantee places are allocated annually and can run out at individual lenders mid-year. A pre-approval without confirming a place exists at that lender is not the same as a scheme-backed application.
For most first home buyers here, the savings history and the credit enquiry count are what slow applications down, not income or the property itself.
How do you buy your first home in South East Melbourne, step by step?
Step 1: Talk to us
We start by working through your deposit, savings history, income and credit position to tell you exactly where you stand and which scheme suits your situation.
Step 2: Confirm your borrowing capacity and get pre-approved
We run your numbers across the lenders most likely to approve you, confirm scheme eligibility and secure a pre-approval so you can make offers with confidence.
Step 3: Find your property and submit the application
Once you've found the right property, we handle the formal application, coordinate with your conveyancer on the Section 32 and manage the lender's valuation and conditions.
Step 4: From approval through to settlement
We track the file from formal approval to settlement day, keeping you across any outstanding conditions and liaising with the lender and your conveyancer on timing.
Frequently Asked Questions
Can first home buyers in South East Melbourne use the 5% Deposit Scheme on a unit?
Yes, units and apartments are eligible under the First Home Guarantee in South East Melbourne, subject to the $950,000 price cap. Most unit medians across the approved suburbs sit under that cap, making this the most practical deposit route for buyers here.
Does the $10,000 First Home Owner Grant apply to established properties in South East Melbourne?
No, the FHOG applies to new homes only and the property must be priced at $750,000 or less. In South East Melbourne that means off-the-plan apartments and new townhouses, not established stock.
Can first home buyers in South East Melbourne combine the FHOG and the duty exemption?
Yes, the two stack where the property qualifies for both. An off-the-plan unit under $600,000 can attract the $10,000 grant and a full duty exemption, which is a meaningful reduction in upfront costs.
Is the 5% Deposit Scheme or a guarantor loan better for first home buyers?
The 5% Deposit Scheme suits buyers who have genuine savings and can work within the $950,000 cap, because it involves no ongoing family obligation. A guarantor loan works better where the savings are thin or the property sits above the cap, but it exposes the guarantor's equity until the loan reaches 80% LVR.
How long does it take first home buyers to get pre-approved in South East Melbourne?
Pre-approval typically takes three to ten business days once your documents are in order. The main delays are gaps in savings evidence, unresolved credit enquiries or missing payslips, not the lender's processing time.
Is a mortgage broker better than going directly to a bank as a first home buyer?
A mortgage broker, every time. A single lender shows you one policy on genuine savings, one position on apartment density and one view of your scheme eligibility. A broker compares those policies across a panel and finds the lender whose criteria your situation actually fits.
Your Next Steps
For first home buyers in South East Melbourne, the path is specific: units under the $950,000 cap, schemes that stack where the property qualifies, and a savings and credit position that tells the right story before you apply. Getting those three things aligned before you start looking is what separates a smooth approval from a delayed or declined one.
Ready to work through where you stand? Contact the EverLend team or call 03 7036 3356. We'll canvas our 60+ lender panel and find the most suitable options for your circumstances.
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External Resources
EverLend · South East Melbourne · Ever Lend Pty Ltd (ACN 625 080 515), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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