In short: A well-organised first home buyer in Melbourne can go from first conversation to keys in about 90 days: two weeks to gather documents and secure pre-approval, four to six weeks of searching and making an offer, two weeks for formal finance approval and contract review, and a 30-day settlement. Delays almost always come from documents, not lenders.
Key takeaways
- Pre-approval should be in hand before you inspect anything seriously; it takes one to two weeks if your documents are ready.
- Government support (First Home Guarantee, FHOG, stamp duty exemption) is assessed alongside the loan, not after.
- The three clear business days of cooling-off on a private sale are your last chance to walk away cheaply.
- Formal approval usually lands within five to ten business days of a signed contract if the valuation is clean.
- Nothing about your job, debts or savings should change between application and settlement.
Most first home buyers picture the process as one long, vague stretch of stress. It is actually a series of short, defined tasks, and once you can see them laid out week by week the whole thing becomes manageable. This is the timeline we run with clients from Mickleham to Mernda, built around a private-sale purchase with a standard 30-day settlement. Auctions and longer settlements shift the dates but not the order.
Weeks 1 to 2: preparation and pre-approval
Week 1: the numbers
Start with a consultation, in person or by video. We look at income, savings, debts and goals and give you a realistic borrowing range rather than a website guess. This is also where we check eligibility for the First Home Guarantee (5% deposit, no LMI, Melbourne price cap $950,000, no income cap), the $10,000 First Home Owner Grant for new homes up to $750,000, and the stamp duty exemption for purchases up to $600,000.
Then gather your documents. The home loan documents checklist lists everything, but the core set is:
- Photo ID (passport, driver licence, Medicare card).
- Two most recent payslips and your latest income statement from the ATO.
- Three months of statements for every bank account, including the ones you forgot about.
- Statements for any credit cards, car loans, BNPL or HECS.
- Evidence of your deposit, and a gift letter if part of it came from family.
Week 2: pre-approval lodged and returned
With documents in hand we lodge a pre-approval with the lender that best suits your situation. Turnaround varies, but a clean application with full documents usually returns within a week. Pre-approval is typically valid for 90 days, which sets the clock for the rest of this plan.
If your deposit is below 20% and you are not using the Guarantee, this is when LMI becomes real. Compare the cost with the LMI calculator and consider whether a guarantor loan makes sense for your family.
Weeks 3 to 8: searching and making an offer
Weeks 3 to 6: inspect with a ceiling
You now know your price ceiling and your total upfront costs from the upfront costs calculator. Inspect only properties within that range. For every home you like, request the Section 32 vendor statement early. The Section 32 is mandatory in Victoria and reveals title, easements, owners corporation details and planning overlays, and your conveyancer should review it before you make any offer.
Engage a conveyancer in week 3, not week 7.
Weeks 7 to 8: offer, contract and cooling-off
When you find the home, make a written offer. In a private sale, insist on a subject-to-finance clause with a realistic timeframe, usually 14 days, and a building and pest inspection condition. If the vendor accepts, you sign the contract of sale and pay the initial deposit, often 10%, though a smaller holding deposit can sometimes be negotiated.
Victoria gives you three clear business days of cooling-off after signing a private-sale contract. Walking away in that window costs $100 or 0.2% of the price, whichever is greater. On a $650,000 house that is $1,300. It does not apply at auction, which is why auction buyers need the next section done beforehand.
Book the building and pest inspection the day the contract is signed. On a $650,000 established house in Epping, a few hundred dollars here can reveal thousands in hidden repairs.
Weeks 9 to 10: formal approval
The signed contract goes to the lender with your updated payslips and statements. The lender orders a valuation, which is the step most likely to cause trouble: if the valuer's figure comes in below the contract price, your loan is recalculated on the lower number and you may need to find the difference. What to do in that case is covered in what happens if finance falls through.
With a clean valuation, formal (unconditional) approval typically arrives within five to ten business days. Once the finance condition is satisfied, the contract becomes unconditional and the settlement date is locked. If the lender is slow, your conveyancer requests an extension of the finance date from the vendor before it lapses, never after.
Weeks 11 to 13: settlement
Week 11: loan documents
The lender issues loan documents. Read them, sign them, return them. If the loan includes an offset account, set it up now so your savings and salary land in it from day one. Arrange building insurance to start from settlement (or from contract signing, depending on the contract terms; your conveyancer will confirm).
Week 12: final checks
Your conveyancer prepares the settlement statement showing the balance owed, stamp duty, adjustments for council rates and water, and the lender's contribution. Any shortfall must be in cleared funds a few days before settlement. Do a final inspection of the property in the last week to confirm it is in the same condition as when you signed.
Week 13: settlement day
Settlement in Victoria is done electronically. The lender, your conveyancer and the vendor's side exchange funds and title online, usually mid-afternoon. Once it completes, the agent releases the keys. The full mechanics are in the settlement process in Victoria.
The 90-day plan at a glance
| Week | Task | Who does it |
|---|---|---|
| 1 | Consultation, borrowing range, grant eligibility, gather documents | You and GNT Finance |
| 2 | Pre-approval lodged and returned | GNT Finance and lender |
| 3 | Engage conveyancer, start inspecting | You |
| 4 to 6 | Inspect, request Section 32s, shortlist | You and conveyancer |
| 7 | Offer accepted, contract signed, deposit paid | You, agent, conveyancer |
| 8 | Cooling-off, building and pest inspection, contract to lender | You, inspector, GNT Finance |
| 9 to 10 | Valuation and formal approval | Lender |
| 11 | Sign loan documents, insurance, offset set up | You and lender |
| 12 | Settlement statement, funds cleared, final inspection | Conveyancer and you |
| 13 | Settlement and keys | Everyone |
What pushes the timeline out
- Missing or outdated documents. Payslips older than 30 days at lodgement get sent back.
- A credit file surprise. Check yours before week 1; the credit score guide explains how.
- Changing jobs mid-process. Most lenders want you past probation.
- New debt. A car loan approved in week 9 can undo a finance approval in week 10.
- A low valuation, or a Section 32 that reveals an owners corporation dispute or unapproved works.
- Longer settlement terms. Vendors sometimes ask for 60 or 90 days, which simply stretches the final phase.
For the government's own step-by-step view of buying, Consumer Affairs Victoria's guide is the reference we point clients to.
Frequently asked questions
Can I buy a home faster than 90 days?
Yes. If your documents are ready on day one and you find a property in the first fortnight, a 30-day settlement can put keys in your hand inside six weeks. The pre-approval and formal approval stages cannot really be compressed, but the search phase is entirely up to you and the market.
Does the First Home Guarantee slow the process down?
Not noticeably. Participating lenders reserve a place in the scheme when you apply, and the eligibility checks (citizenship or permanent residency, no property ownership in the last 10 years, owner-occupier intent) are done alongside the normal assessment. Buyers can confirm the current rules at Housing Australia.
What if my pre-approval expires before I find a home?
Pre-approvals typically last 90 days. If yours lapses, the lender re-verifies your income and expenses with fresh documents, which usually takes a few days. If rates or your circumstances have changed, the figure can shift. Keep your documents current from week 10 onward so a renewal is quick.
When should I get building insurance?
Speak to your conveyancer about the contract terms. Some Victorian contracts place risk with the buyer from signing, others from settlement. Lenders require the policy to be in place before they release funds, so organise it in week 11 at the latest.
Talk to GNT Finance
We run this timeline with first home buyers across Melbourne's north every month, in English, Nepali or Hindi, and we keep the checklist so you do not have to. Book a free consultation to start your week 1, or call Gorakh Timilsina on 0426 403 703. There is no cost to you for our home-loan service in most cases.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.