Buying a house in Melbourne
What is buying a home like in Melbourne, Australia?
In this piece we’ll break down what it’s like finding a house in regional and metropolitan Melbourne and walk you through getting the smartest home loan rates.
Melbourne is a vibrant city full of live music, coffee and immaculate energy. Unless you can’t deal with volatile weather, there’s no reason you wouldn’t want to live there! It’s desirability is one of the many reasons it’s so hard to find a home in Melbourne. Even if you do, it’s probably for an unbelievable price. Before we get into how to tackle Melbourne’s housing market and find the best mortgage, check out our Street Interview that we conducted for evidence of the crisis!
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Regional Vs Inner Melbourne
While most people prefer to live in the inner regions for ease of access to the CBD, there has recently been a growth boom in regional suburbs. This is due to public transport and freeway lines expanding to make commutes to the city easier than ever. It is also because people just prefer the peace of mind that comes with a regional style of living. So the choice really comes down to what you value the most, we’ve put together a table comparing both to help you make an informed decision.
| Category | Inner Melbourne | Regional Melbourne / Regional Victoria |
|---|---|---|
| Median House Price (2025) | $1.1m – $1.4m+ | $625k – $640k (many towns $450k–$550k) |
| Recent Price Trend | Modest growth after 2024 declines; strong long-term demand | Recovery phase; annual growth returning across regional areas |
| Capital Growth Profile | Strong, consistent long-term growth in premium suburbs | More varied; strong results in major regional cities |
| Rental Yields | Lower (2.5–3.5%) due to high entry prices | Higher (3.5–4.5%+) |
| Rental Demand | Strong, low vacancy near CBD, unis, hospitals | Strong in major regional hubs; varies in small towns |
| Transport Infrastructure | Extensive trams, trains, Metro Tunnel, high connectivity | Good major roads & rail to Melbourne; local PT limited |
| Health & Education | Major hospitals, universities, high service access | Base hospitals, TAFE/uni campuses; some specialist gaps |
| Lifestyle | Urban, walkable, dense amenities but smaller homes | More space, quieter, nature-focused; fewer big-city amenities |
| Buyer Profiles | Professionals, downsizers, prestige buyers | First-home buyers, families, remote workers, retirees |
Finding The Smartest Mortgage/Home Loan Rates
If you are a first time home buyer or not, there are several schemes/services that are set up to help you find low rates and better repayment offers. It all comes down to if you find and take advantage of them.
Key grants, schemes and concessions available in 2025
First Home Owner Grant in Victoria
You may be eligible for a one off grant of ten thousand dollars if you are purchasing or building a new home in Victoria valued at up to seven hundred and fifty thousand dollars. This payment can be used to reduce the size of your deposit or it can assist with upfront costs related to the purchase.
Land transfer duty concessions and exemptions
Many first home buyers in Victoria qualify for reduced or zero stamp duty. Homes valued up to six hundred thousand dollars may be exempt. Homes valued up to seven hundred and fifty thousand dollars may attract a concession. Victoria also offers concessions for certain off the plan purchases. These can reduce upfront costs even further depending on the nature of the property.
Australian Government Five Percent Deposit Scheme
This program allows eligible buyers to purchase a home with as little as a five percent deposit. Certain eligible single parents or guardians may qualify with a two percent deposit. The government guarantees part of the loan which removes the need for Lenders Mortgage Insurance. Since late 2025 this scheme has been expanded. Income caps have been removed which means a wider group of buyers can use it. For many people this provides a pathway into the market sooner than expected.
First Home Super Saver Scheme
This option lets you save part of your deposit inside your superannuation fund. You can make voluntary contributions, benefit from concessional tax treatment and later withdraw the contributions and associated earnings to use for a deposit. This can be a tax efficient strategy for people who want to save in a structured and disciplined way.
Shared equity and deposit support programs
Some buyers may qualify for programs that contribute funds toward the purchase price in exchange for a share of the equity. These programs help reduce deposit requirements and can remove the need for Lenders Mortgage Insurance. There are also specialised versions tailored for regional buyers, single parents and people purchasing new builds. Eligibility varies, so it is important to review the details carefully.
When used together, these programs can significantly reduce the barrier to entry for home buyers. A combination of a grant, a stamp duty concession and a low deposit loan structure can reduce the amount you need to save. This can shorten your buying timeline, limit upfront expenses and help you enter the property market sooner.
Filing the paperwork right and comparing lenders
Something that isn’t always evident is the fact that clean paperwork and comparing several lenders can help you secure a smart home loan faster than expected. An effective way to do this without any of the hassle is by finding a good mortgage broker.
This doesn’t mean you contact any broker who’s trying to sell you perfection. Invest your time into finding a good broker and then let them handle the rest. We offer a free consultation for new clients, speak to us and see if we’re a good fit.
If this your first time exploring/hearing of a mortgage broker, fill out our contact form and we’ll send you a resource breaking down exactly what we do and who we are.
All the best house hunting!
Australian Finance Brokerage