Buying your first home is an exciting milestone, but it can also feel overwhelming.
For many first home buyers in Victoria, the process involves unfamiliar terms, important decisions and significant financial commitments. Understanding the steps involved before signing a contract can help you make informed decisions and avoid costly mistakes.
From reviewing the contract and Section 32 Vendor Statement, arranging finance, conducting property searches, attending the final inspection and completing settlement, each stage plays an important role in protecting your interests.
This guide explains the Victorian property buying process for first home buyers and highlights key things you should know before purchasing your first property.
What Should First Home Buyers Know Before Buying Property in Victoria?
Before starting your property search, it is important to understand that buying a home involves more than finding the right property.
A successful purchase requires careful consideration of:
- Your budget and borrowing capacity
- The terms of the Contract of Sale
- The Section 32 Vendor Statement
- Property conditions and restrictions
- Settlement requirements
- Additional costs involved in purchasing property
Many first home buyers focus on the purchase price but overlook other important factors that can affect their decision.
Getting professional advice early can help you understand your obligations before committing to a purchase.
Step 1: Understand Your Budget and Finance
Before making an offer on a property, you should have a clear understanding of your financial position.
This may include:
- Your borrowing capacity
- Available savings
- Deposit amount
- Government grants or concessions you may be eligible for
- Additional purchasing costs
It is important to understand that the deposit is not the only cost involved when buying property.
Other costs may include:
- Conveyancing fees
- Government transfer duties (if applicable)
- Property searches
- Loan costs
- Building and pest inspections
- Insurance
- Moving expenses
A mortgage broker or lender can assist with understanding your finance options.
Step 2: Find the Right Property
Once you understand your budget, you can begin searching for a suitable property.
First home buyers should consider more than just the appearance of a property.
Important factors include:
- Location
- Future development plans
- Property condition
- Easements
- Covenants
- Owners Corporation obligations
- Council restrictions
- Potential renovation requirements
A property may look perfect but still have issues that affect your decision.
Step 3: Review the Contract of Sale and Section 32 Vendor Statement
Before signing a contract, first home buyers should understand the documents involved.
In Victoria, the seller must provide a Section 32 Vendor Statement before the sale.
The Section 32 contains important information about the property, including:
- Title details
- Mortgages
- Easements
- Covenants
- Planning information
- Owners Corporation information (if applicable)
- Outgoings and other property details
The Contract of Sale sets out the terms and conditions of the purchase.
A conveyancer can review these documents and help identify important issues before you commit to buying the property.
Why Should First Home Buyers Consider a Contract Review?
Many first home buyers assume that a standard contract is straightforward.
However, contracts can contain important conditions relating to:
- Settlement dates
- Deposit requirements
- Special conditions
- Default provisions
- Inclusions and exclusions
- Other obligations affecting the buyer
A contract review before signing can help you understand what you are agreeing to.
Once a contract is signed, it may be difficult to change the terms.
Step 4: Consider Building and Pest Inspections
A property may look perfect during an inspection, but some issues may not be obvious.
A building inspection may identify concerns such as:
- Structural issues
- Water damage
- Defects
- Maintenance problems
A pest inspection may identify issues such as:
- Termites
- Timber pests
- Damage that may affect the property
Depending on the contract terms, buyers may negotiate a contract subject to building and pest inspections.
First home buyers should understand any special conditions before signing.
Step 5: Understand the Cooling-Off Period
Victoria has a cooling-off period for many residential property purchases.
The cooling-off period allows eligible buyers to reconsider their decision after signing a contract.
However, there are important exceptions and conditions.
First home buyers should not rely on the cooling-off period as a substitute for proper preparation before signing.
It is always better to understand the contract before committing.
Step 6: Arrange Property Searches
Property searches provide important information about the property.
Searches may identify matters such as:
- Council rates
- Planning information
- Land information
- Building approvals
- Other issues affecting the property
A conveyancer can help arrange and review relevant searches to ensure you understand the property you are purchasing.
Step 7: Pay the Deposit
When purchasing property, buyers are usually required to pay a deposit after signing the Contract of Sale.
The deposit is generally held in a trust account until it can be released according to the legal requirements.
First home buyers should ensure they understand:
- How much deposit is required
- When it must be paid
- Who holds the deposit
- What happens if the transaction does not proceed
Always confirm payment details before transferring significant funds.
Step 8: Prepare for Settlement
After signing the contract, your conveyancer will help prepare your matter for settlement.
This may include:
- Reviewing title information
- Preparing settlement documents
- Liaising with your lender
- Adjusting rates and outgoings
- Arranging electronic settlement
First home buyers should ensure their finance is progressing and provide requested information promptly.
What Happens on Settlement Day?
Settlement is the final stage of the property purchase.
On settlement day:
- The buyer’s lender provides funds
- The seller receives payment
- Ownership is transferred
- The buyer can usually collect the keys after settlement
Once settlement is completed, the buyer becomes the registered owner of the property.
First Home Owner Grants and Concessions in Victoria
Eligible first home buyers in Victoria may be able to access government assistance, including grants or duty concessions.
Eligibility requirements can change and may depend on factors such as:
- Purchase price
- Property type
- Whether the property will be your principal place of residence
- Residency requirements
First home buyers should check the current requirements with the relevant government authority or obtain professional advice.
Common Mistakes First Home Buyers Should Avoid
Signing a Contract Without Reviewing It
A contract is legally binding once signed.
Always understand the terms before committing.
Focusing Only on the Property Appearance
A beautiful property may still have legal, structural or financial issues.
Ignoring Additional Costs
Budget for more than just the purchase price.
Not Understanding the Section 32
The Section 32 contains important information about the property.
Leaving Things Too Late Before Settlement
Provide documents and complete required steps early to avoid unnecessary delays.
Not Conducting Proper Due Diligence
Researching the property before buying can help avoid surprises.
How a Conveyancer Helps First Home Buyers
A conveyancer can guide first home buyers through the legal side of purchasing property.
This may include:
- Reviewing contracts
- Explaining the Section 32 Vendor Statement
- Arranging searches
- Preparing settlement documents
- Communicating with the seller’s representative
- Coordinating settlement
Having professional support can give first home buyers confidence throughout the transaction.
Frequently Asked Questions About First Home Buyers in Victoria
Do first home buyers need a conveyancer?
While buyers are not legally required to use a conveyancer in every situation, professional assistance can help you understand contracts, conduct searches and complete settlement correctly.
Should I get a contract review before making an offer?
Yes. Reviewing the contract before signing can help identify important conditions and potential issues before you commit.
How much deposit do first home buyers need?
The deposit amount depends on the contract terms and your agreement with the seller. Your lender and conveyancer can help explain your obligations.
Can I buy a property before my loan is formally approved?
This depends on your circumstances. Buyers should understand the risks of signing a contract before finance is confirmed.
What is a Section 32 Vendor Statement?
A Section 32 Vendor Statement is a document provided by the seller containing important information about the property.
When do I get the keys after buying a property?
Keys are generally provided after settlement has been completed.
Do first home buyers need a building inspection?
A building inspection is not always mandatory, but it can help identify potential issues before purchasing.
How Prox Conveyancing Can Help First Home Buyers
At Prox Conveyancing, we understand that buying your first home can feel complicated and unfamiliar.
We assist first home buyers across Victoria by providing clear guidance throughout the conveyancing process, from contract review through to settlement.
Our goal is to help you understand your obligations, identify potential issues and complete your property purchase with confidence.
About the Athour
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal advice. Every property transaction is unique, and the information above may not apply to your particular circumstances. If you require advice about your specific situation, please contact a qualified legal professional or licensed conveyancer.