07 Apr 2026 Home Loans for First Home Buyers in South East Melbourne, The 2026 Guide

South East Melbourne has real options for first home buyers who know where to look. The unit market in several inner suburbs sits below the $600,000 stamp duty exemption threshold, which means $0 in stamp duty, a $10,000 FHOG on new builds, and a 5% deposit with no LMI through the First Home Guarantee are all within reach at the same time.

Whether you’re looking in St Kilda – South Yarra or Windsor, the combination of federal schemes and Victorian exemptions can put first home ownership within reach faster than waiting years to save a 20% deposit. That’s particularly true for units, where confirmed medians of $490,000 in St Kilda and $547,500 in South Yarra mean full stamp duty exemption and scheme eligibility.

EverLend helps first home buyers across South East Melbourne compare home loan options across 60+ lenders, completely free of charge.

Here’s what you need to know about buying your first home in South East Melbourne.

What government schemes help first home buyers in South East Melbourne?

First home buyers in South East Melbourne have access to more support than many realise. The key is understanding which schemes stack together and where the price caps create real opportunities in this market.

The combination that delivers the strongest result is the First Home Guarantee (5% deposit, no LMI), the Victorian stamp duty exemption (properties up to $600,000), and the $10,000 FHOG on new builds. On a $590,000 unit purchase, for example, you’re saving approximately $18,500 in LMI and around $23,000 in stamp duty, plus receiving $10,000 cash if it’s a new build.

Can first home buyers get a home loan with just a 5% deposit in South East Melbourne?

Yes. The First Home Guarantee lets eligible buyers purchase with a 5% deposit and no lenders mortgage insurance, up to a $950,000 price cap in Melbourne. The government guarantees up to 15% of the loan, which removes the lender’s LMI requirement. Income caps were removed in October 2025, so eligibility now turns on your deposit, property price, and lender choice rather than how much you earn. Your exact eligibility depends on your income, debt levels, and lender choice, which is what we work through with you in a free consultation.

What schemes are available to first home buyers in South East Melbourne?

Federal and Victorian schemes available in 2026:

• ›First Home Guarantee: buy with a 5% deposit and no LMI, up to $950,000 in South East Melbourne. Income caps removed October 2025. Administered by Housing Australia through participating lenders.
• ›Victorian stamp duty exemption: $0 stamp duty on properties up to $600,000, partial concession from $600,001 to $750,000. Both new and established homes qualify.
• ›Victorian First Home Owner Grant: $10,000 for new homes with a contract price up to $750,000. Confirmed continuing in the 2026-27 Victorian Budget. Includes off-the-plan units, house and land packages, and newly built homes.
• ›Victorian off-the-plan concession: excludes post-contract construction costs from the dutiable value, potentially bringing contracts above $600,000 back under the stamp duty exemption threshold. Available to all buyers, not just first home buyers. The 2026-27 Victorian Budget announced an extension to contracts entered into before 21 April 2027, subject to legislation. Confirm the current end date with the State Revenue Office before relying on it.
• ›Help to Buy: federal shared equity scheme where the government contributes up to 40% on new homes and up to 30% on existing homes. Income caps of $100,000 (single) or $160,000 (couple). Price cap $950,000 in Melbourne. Applications opened December 2025. Cannot be combined with the First Home Guarantee. Confirm the current list of participating lenders and broker-access arrangements before applying.

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

Getting your first home loan right is about finding the lender that treats your income and deposit situation most favourably. With 60+ lenders in the market, policies vary significantly on casual income assessment, HECS debt calculations, and scheme eligibility criteria.

Step 1: Talk to us

Get in touch and we’ll assess your income, deposit, and borrowing capacity across our 60+ lender panel to identify which options suit your situation.

Step 2: Confirm your scheme eligibility

We check your eligibility for the First Home Guarantee, Victorian stamp duty exemption, FHOG, and Help to Buy based on your income, property price range, and first home buyer status.

Step 3: Structure your application

We structure your application to maximise your borrowing capacity and scheme benefits, including timing considerations for the off-the-plan concession if you’re buying new.

Step 4: Submit to the right lender

We submit your application to the lender most likely to approve it at the rate and terms you want, handling all documentation and communication throughout the process.

Step 5: Coordinate scheme applications

We coordinate your First Home Guarantee application with your lender and ensure all Victorian exemptions are claimed correctly through your solicitor.

Step 6: Settlement and ongoing support

We guide you through to settlement and remain available for any refinancing or property investment questions as your circumstances change.

What mistakes do first home buyers make in South East Melbourne?

The biggest mistake first home buyers make is walking into their own bank first. Banks can only offer their own products, which means you never find out what other lenders would offer. That single difference in approach can cost you thousands in interest or fees, and you might miss out on better scheme eligibility criteria.

The second mistake is focusing only on houses when the unit market offers much stronger entry opportunities. In South East Melbourne, confirmed unit medians in St Kilda ($490,000) and South Yarra ($547,500) sit well within the stamp duty exemption threshold, while house medians start from around $1.29M. Units give you the full scheme stack plus a realistic entry point.

Where can first home buyers realistically buy in South East Melbourne?

Your best opportunities as a first home buyer in South East Melbourne centre on the unit market in inner suburbs. The confirmed data shows clear entry points where all the schemes stack together.

Entry points by price range:

• ›Prime opportunities: St Kilda units ($490,000), South Yarra units ($547,500), Windsor units ($536,375), and Prahran units (approximately $535,000) all sit under the $600,000 stamp duty exemption threshold.
• ›Stamp duty concession range: Port Melbourne units (approximately $500,000) and St Kilda East units (approximately $565,000) offer good value with partial or full exemptions.
• ›New build focus: off-the-plan units in inner South East Melbourne can access the FHOG ($10,000), the off-the-plan concession (potentially reducing dutiable value below $600,000), and the First Home Guarantee simultaneously.
• ›Houses: house medians across South East Melbourne range from approximately $1.29M to $5.8M, putting most above the stamp duty exemption and the First Home Guarantee price cap of $950,000.

Frequently Asked Questions

How much deposit do I need as a first home buyer in South East Melbourne?

As little as 5% through the First Home Guarantee, which waives lenders mortgage insurance up to a $950,000 purchase price. Without the scheme, you typically need 20% to avoid LMI, though some lenders accept 10% with LMI added to the loan.

What is the borrowing capacity test first home buyers face in South East Melbourne?

Lenders assess your ability to service repayments at approximately 9% (your actual rate plus the APRA 3% serviceability buffer). The exact figure varies significantly between lenders based on how they assess your income, existing debts, and expenses, which is exactly what we work through with you in a free consultation.

Do I qualify for stamp duty exemption as a first home buyer in South East Melbourne?

Yes, if you’re buying your first home for $600,000 or less, you pay $0 stamp duty in Victoria. Properties from $600,001 to $750,000 receive a partial concession. Both new and established homes qualify, unlike some other states.

Should first home buyers use a mortgage broker or go directly to their bank?

A mortgage broker, every time. Banks can only offer their own products, while brokers compare 60+ lenders to find the best rate, terms, and scheme eligibility for your situation. The variation in what different lenders offer first home buyers can be substantial, particularly on scheme access and income assessment policies.

Can first home buyers use the First Home Guarantee for units in South East Melbourne?

Absolutely. Units are often the best use of the First Home Guarantee in South East Melbourne. With unit medians in St Kilda ($490,000) and South Yarra ($547,500) sitting well within the $950,000 cap, you can access the 5% deposit benefit plus full stamp duty exemption simultaneously.

Does HECS debt affect a first home buyer’s loan application in South East Melbourne?

HECS debt reduces your borrowing capacity because lenders include the repayments in their serviceability calculations. The impact varies by lender and your income level, but it does not prevent you from getting a home loan. It is factored into the assessment, and some lenders treat it more generously than others, which is where comparing across our panel makes a real difference.

Can first home buyers go off-the-plan and still get all first home buyer benefits?

Yes, and it is often the strongest combination available. Off-the-plan purchases can access the FHOG ($10,000), the off-the-plan concession (reducing the dutiable value, potentially below $600,000), and the First Home Guarantee simultaneously. Confirm the current off-the-plan concession end date with the State Revenue Office before exchanging contracts.

Your Next Steps

Getting your first home loan right is about more than finding a low rate. The right lender for your situation can mean better scheme eligibility, smoother income assessment, and access to products designed for first home buyers. Those differences vary significantly across our 60+ lender panel and they are worth understanding before you commit to any lender.

The right lender for first home buying in South East Melbourne depends on your situation, and that’s a conversation worth having. Talk to the EverLend team or call 03 7036 3356, and we’ll compare your options across 60+ lenders at no cost to you.

About the author Evelyn Clark Director, Mortgage & Finance Broker, EverLend Evelyn Clark is the Director and Mortgage & Finance Broker at EverLend, a South East Melbourne brokerage. Specialising in home finance, she helps first home buyers, upgraders and investors across South East Melbourne. Operating under Ever Lend Pty Ltd (ACN 625 080 515), authorised under LM Broker Services Pty Ltd (Australian Credit Licence 517192), Evelyn Clark compares loans across a panel of 60+ lenders at no cost to the borrower. Meet the team →Book a Free call →

EverLend · St Kilda and South East Melbourne · General information only – this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions. · Last updated 16 July 2026