First home buyer guide
Buying Your First Home in Geelong: A Step-by-Step Guide
Grants, deposits, pre-approval and the whole process, step by step.
Buying your first home in Geelong is a big step, and the finance side has more moving parts than most people expect. This guide walks through the whole thing: the government help you can claim, how much deposit you actually need, getting pre-approved, and what happens from there to settlement. When you’re ready to sort the loan, talk to one of our licensed local brokers who handles first home buyers, free to you and with no obligation.
The government help, in real numbers
Victoria gives first home buyers two genuine leg-ups. Together they can be worth tens of thousands, so it’s worth understanding both.
The First Home Owner Grant is a $10,000 payment towards a new or never-lived-in home valued up to $750,000. You have to move in and live there. It’s new homes only, so a house-and-land package or a brand-new build qualifies, but an established home doesn’t.
The stamp duty saving is separate and often bigger. First home buyers pay no stamp duty on a home up to $600,000, then a sliding discount applies between $600,001 and $750,000. This one covers new and established homes, as long as you live in it as your main home. On a $600,000 home the duty is waived in full, which can come to tens of thousands of dollars.
To get either, you generally need to be over 18, an Australian citizen or permanent resident, buying to live in rather than invest, and you can’t have owned a home in Australia before or claimed the grant already. There are finer rules, and a broker checks you actually qualify before you commit.
Step 1: Work out your deposit
The deposit is usually the hardest part. The rule of thumb is 20% of the price, because that avoids lenders mortgage insurance, an extra cost that protects the lender if you can’t repay. On a $500,000 Geelong home, 20% is $100,000.
But here’s what a lot of first home buyers don’t realise: you don’t always need the full 20%. Plenty of loans go ahead with 10%, or even 5% plus insurance. Some government-backed schemes allow smaller deposits too. Whether that’s smart depends on your situation. Paying insurance to buy a year earlier can be worth it in a rising market, or a waste if prices are flat. This is exactly the sort of call a broker helps you make.
Step 2: Get pre-approved
Before you go to a single open home, get pre-approval. It’s a lender’s conditional agreement to lend you up to a certain amount, and it does two things. It tells you your real budget, so you’re not falling for houses you can’t buy. And it shows agents you’re a serious buyer, which counts for a lot at a Geelong auction.
Pre-approval usually lasts around three months and takes days to a couple of weeks to arrange. A broker sorts it out early, comparing which lenders will approve you and for how much, because borrowing power varies a surprising amount between banks.
Step 3: Find the place
Now the fun part. Geelong gives first home buyers real choice at different price points. The affordable northern suburbs like Corio and Norlane are traditional entry points. The growth estates at Armstrong Creek, Lara and Leopold are full of new house-and-land packages, which is where the $10,000 grant comes into play. Inner suburbs like Herne Hill suit buyers priced out of pricier pockets nearby.
Go to lots of opens. Check the property against your pre-approved budget, not your dream budget. And factor in the extras beyond the price: building and pest inspections, conveyancing, moving costs.
Step 4: Make your offer and buy
When you find it, you either bid at auction or make an offer on a private sale. Auctions are unconditional, so your finance needs to be sorted first, which is another reason pre-approval matters. A private sale can include conditions like finance and inspections.
Once your offer’s accepted, your broker moves the pre-approval to full approval on that specific property, the lender does a valuation, and you sign the loan documents. Settlement, when the property legally becomes yours, is usually 30 to 60 days later. Your broker and conveyancer handle the mechanics; you get the keys.
Where a broker fits in all this
You can do a lot of this yourself. Where a broker earns their place is the finance: working out your genuine borrowing power, finding a lender that suits a first home buyer’s smaller deposit, timing the grant with a build, getting you pre-approved fast, and steering the application through to settlement without it stalling on a missing document.
And it costs you nothing. The lender pays the broker when the loan settles. Read more on the first home buyers page, or if you’re building, the construction loans page.
Get started
When you’re ready to sort the loan, one of our Geelong brokers who does this every week picks it up.
Common questions
How much deposit do I need to buy my first home in Geelong?
Around 20% of the price avoids lenders mortgage insurance, but many first home buyers get in with 10% or even 5% plus insurance. On a $500,000 home, 20% is $100,000 and 10% is $50,000. A broker can tell you which lenders suit a smaller deposit and whether paying insurance to buy sooner makes sense.
What government help can first home buyers get in Victoria?
Two main things. The $10,000 First Home Owner Grant for a new home up to $750,000, and a stamp duty exemption on any first home up to $600,000 with a concession to $750,000. The grant is new homes only; the stamp duty saving covers new and established homes you live in.
How long does it take to buy a first home?
From saving a deposit to settlement, it varies a lot, but once you're actively looking, expect a few months. Pre-approval takes days to a couple of weeks, house hunting takes as long as it takes, and settlement is usually 30 to 60 days after your offer is accepted. A broker keeps the finance side moving.
Should I get pre-approval before I start looking?
Yes. Pre-approval tells you your budget and shows agents you're serious, which matters at Geelong auctions and private sales. It usually lasts around three months. Going to opens without it means you can't act when you find the right place. A broker arranges pre-approval as one of the first steps.