---
title: Home Buying Process in Victoria: 10 Steps | GNT Finance
description: The full home buying process in Melbourne from deposit and pre-approval to Section 32 review, finance approval and settlement, with timelines and costs.
url: https://gntfinance.com.au/guides/home-buying-process-step-by-step/
section: guides
updated: 2026-09-01
author: Gorakh Timilsina, GNT Finance
---

# The home buying process in Victoria, step by step

**In short:** Buying a home in Victoria follows ten steps: set a budget and save the deposit, get pre-approval, search and inspect, have a conveyancer review the Section 32 and contract, make an offer or bid at auction, sign the contract, obtain formal loan approval, let your conveyancer prepare the transfer, do a final inspection, then settle and collect the keys. From pre-approval to keys usually takes three to five months.

Each step has a deadline or a decision that can cost you money if you get it wrong. This guide sets out each stage for a Melbourne purchase, who does what, how long it takes and where buyers most often trip. First-time buyers should read it alongside the [first home buyer guide for Victoria](/guides/first-home-buyer-guide-victoria/), which covers grants and duty concessions in depth.

## The ten steps at a glance

| Step | What happens | Who is involved | Typical timing |
|---|---|---|---|
| 1 | Set a budget, save the deposit and costs | You, broker | Months to years |
| 2 | Pre-approval | Broker, lender | 1–10 business days; valid ~90 days |
| 3 | Property search and inspections | You, agents | 4–12 weeks |
| 4 | Section 32 and contract review | Conveyancer | 1–3 days per property |
| 5 | Offer, negotiation or auction | You, agent | Days |
| 6 | Sign the contract, pay deposit | You, agent, conveyancer | Same day |
| 7 | Formal (unconditional) loan approval | Broker, lender, valuer | 2–10 business days |
| 8 | Transfer documents and PEXA set-up | Conveyancer, lender | 2–6 weeks |
| 9 | Final inspection | You, agent | Week of settlement |
| 10 | Settlement and keys | Conveyancer, lender, vendor | 30–90 days after contract, often 60 |

## Step 1: Set your budget and save the deposit

Your budget has two parts: what a lender will give you and what you can comfortably repay. Lenders assess your income and expenses at your rate plus a 3 percentage point buffer, so a loan you qualify for at 6.00% is tested at 9.00%. Start with the [borrowing power calculator](/calculators/borrowing-power/), then work backwards to a purchase price.

You will need cash for more than the deposit. On a $650,000 established house in Craigieburn, a non-first-home buyer budgets roughly:

| Cost | Amount (illustrative) |
|---|---|
| Deposit (10%) | $65,000 |
| Stamp duty (general rate) | $34,070 |
| Conveyancing and searches | $1,500–$2,500 |
| Building and pest inspection | $500–$800 |
| Lender application and settlement fees | $0–$1,000 |
| Title transfer and mortgage registration | Roughly $250–$400 |
| Removalist, connections, insurance | $1,500–$3,000 |

A first home buyer paying $650,000 would instead pay a sliding-scale duty (approximately $11,357) because the full exemption applies up to $600,000 and phases out at $750,000. Run your figures on the [upfront costs calculator](/calculators/upfront-costs/).

## Step 2: Get pre-approved

Pre-approval (also called conditional approval) is a lender's written indication of how much it will lend you, subject to a satisfactory property and unchanged circumstances. It tells you your ceiling, shows agents you are serious, and is essential before bidding at auction.

- Provide payslips, tax returns if self-employed, bank statements, ID and details of debts. See the [home loan documents checklist](/guides/home-loan-documents-checklist/).
- A fully assessed pre-approval, where a credit officer has reviewed your file, is worth far more than a system-generated one. Ask which kind you have.
- Pre-approval typically lasts 90 days and can usually be renewed with updated payslips.
- Do not change jobs, take on new debt or make large unusual purchases while pre-approved.

Full detail is in our [pre-approval guide](/guides/home-loan-pre-approval/).

## Step 3: Search and inspect

Use your pre-approved ceiling minus a safety margin as your search range. Attend inspections in person; listing photos hide a lot. In Melbourne's north, a 2015 house in Craigieburn, a new build in Mickleham and an established home on a larger block in Sunbury can sit at similar prices but suit very different plans.

For each serious contender:

- Ask the agent for the Section 32 and contract before you make an offer.
- Check the Statement of Information, which agents in Victoria must publish with an indicative selling price and three comparable sales, under the state's underquoting laws. See [underquoting laws Victoria](/legal/underquoting-laws-victoria/).
- Book a building and pest inspection ($500–$800) before you commit, and always before auction.
- Drive the street at different times and check flood and bushfire overlays on the planning certificate.

## Step 4: Section 32 and contract review

The Section 32 vendor statement is a document the seller must give you before you sign a contract in Victoria. It discloses the title and any mortgages or caveats, easements and covenants, planning zone and overlays, owners corporation details if applicable, council and water rates, building permits issued in the last seven years, and any notices or orders affecting the land. If it is missing or defective you may be able to withdraw from the contract.

Have a conveyancer or property lawyer review both the Section 32 and the contract of sale before you make an offer, not after. They will flag special conditions, unusual settlement terms, and anything on title that affects value. Read [Section 32 vendor statement](/legal/section-32-vendor-statement/) and [contract of sale Victoria](/legal/contract-of-sale-victoria/) for the full checklist.

## Step 5: Make an offer or bid at auction

### Private sale

Offers are made in writing to the agent, often on the contract itself. You can propose conditions: subject to finance, subject to building and pest inspection, and a settlement period that suits you. The vendor can accept, reject or counter. Agents are obliged to pass on every offer.

### Auction

Auction contracts are unconditional. There is no cooling-off, no subject to finance, and a 10% deposit is due when the hammer falls. You must have your finance, inspections and legal review done beforehand. Our [buying at auction in Victoria](/guides/buying-at-auction-victoria/) guide covers preparation and bidding tactics.

## Step 6: Sign the contract and pay the deposit

On a private sale, both parties sign the contract and you pay the deposit, usually 10% but often negotiable to 5%, into the agent's trust account. The date you sign becomes the reference point for two deadlines:

- **Cooling-off:** you have three clear business days to withdraw from a private-sale contract, forfeiting $100 or 0.2% of the price, whichever is greater ($1,300 on $650,000). It does not apply to auctions, to purchases within three clear business days before or after a publicly advertised auction, or where you used a lawyer to negotiate. See [cooling-off period Victoria](/legal/cooling-off-period-victoria/).
- **Finance clause:** if the contract is subject to finance, you typically have 14 to 21 days to obtain formal approval. If you cannot, you must notify the vendor in writing by the deadline to exit with your deposit intact. Missing the deadline turns the contract unconditional. See [subject to finance clause](/legal/subject-to-finance-clause/).

Arrange building insurance from the day you sign. In Victoria the vendor technically carries the risk until settlement, but a policy in place from contract avoids arguments if something happens in between.

## Step 7: Formal loan approval

Send the signed contract and Section 32 to your broker immediately. The lender orders a valuation, which can be a desktop, kerbside or full inspection depending on the loan-to-value ratio. Once the valuation and any final checks are done, the lender issues formal (unconditional) approval, typically two to ten business days after the contract. You then sign the loan documents, which are increasingly digital.

Two things commonly delay this stage:

1. **Valuation below purchase price.** The lender lends against the lower of price and valuation. If a $650,000 purchase values at $630,000 you need to fund the $20,000 gap or renegotiate. This is why a valuation buffer matters, especially at auction.
2. **Changed circumstances.** A new car loan, a job change or a large unexplained deposit between pre-approval and formal approval can restart the assessment.

## Step 8: Transfer documents and PEXA

Your conveyancer prepares the transfer of land, calculates stamp duty and adjustments (council rates, water rates and owners corporation fees apportioned to the settlement date), and lodges everything in PEXA, the electronic settlement platform used across Victoria. Your lender is also a PEXA participant and confirms the loan funds. You will be asked to:

- Sign the transfer and a client authorisation.
- Complete the State Revenue Office duties forms and any first home buyer declarations. The [SRO](https://www.sro.vic.gov.au) has an online duty calculator if you want to check the figure.
- Transfer the balance of your deposit and costs to the conveyancer's trust account a few days before settlement.

## Step 9: Final inspection

You are entitled to inspect the property in the week before settlement to confirm it is in the same condition as when you signed and that the inclusions listed in the contract are still there. Check that appliances work, taps run and locks operate. Report problems to your conveyancer immediately; issues found after settlement are much harder to fix.

## Step 10: Settlement and keys

On settlement day, PEXA transfers the funds, registers the title in your name and lodges the mortgage in a single electronic transaction, usually early afternoon. Your conveyancer confirms completion, and the agent releases the keys. Stamp duty is paid through PEXA at settlement. You now own the home, and your first loan repayment is typically due one month later. Read [settlement process Victoria](/legal/settlement-process-victoria/) for what can go wrong on the day.

## A worked timeline: buying in Wollert

A couple start the process on 1 February with a $90,000 deposit and a combined income of $170,000. For illustration:

| Date | Milestone |
|---|---|
| 1–7 Feb | Meet broker, budget set at $700,000 maximum, documents submitted |
| 12 Feb | Fully assessed pre-approval for $620,000, valid to mid-May |
| Feb–Mar | Inspect twelve homes across Wollert and Epping; two Section 32s reviewed |
| 22 Mar | Offer $675,000 on a four-bedroom house, subject to finance (14 days) and building inspection; accepted |
| 22 Mar | Contract signed, 5% deposit ($33,750) paid |
| 25 Mar | Cooling-off period ends |
| 27 Mar | Building and pest report clear |
| 1 Apr | Valuation at $675,000; formal approval issued |
| 4 Apr | Finance condition satisfied; contract unconditional |
| 20 May | Final inspection |
| 21 May | Settlement (60 days); stamp duty and balance of deposit paid via PEXA; keys collected |

Total time from first meeting to keys: about 16 weeks.

## Common mistakes

- **Making an offer before the Section 32 has been reviewed.** Easements, covenants and owners corporation levies change what the property is worth to you.
- **Treating pre-approval as a guarantee.** It is conditional on the property and on nothing changing.
- **Letting the finance clause deadline pass** without either approval or written notice. The contract becomes unconditional and your deposit is at risk.
- **Skipping the building and pest inspection** to save $600 on a $650,000 purchase.
- **Starting a new job or a car loan mid-process.** Wait until after settlement.
- **Underestimating upfront costs** and having to borrow the shortfall at the last minute.

## Frequently asked questions

### How long does it take to buy a house in Victoria?

From starting pre-approval to collecting keys, most Melbourne purchases take three to five months. Pre-approval takes days, the search takes weeks to months, and the contract-to-settlement period is usually 30 to 90 days, most commonly 60. Off-the-plan and house-and-land purchases take longer because settlement waits for construction.

### What is a Section 32?

A Section 32 vendor statement is the disclosure document a Victorian seller must give a buyer before a contract is signed. It covers title, mortgages, easements, planning zoning and overlays, rates, owners corporation details, recent building permits and any notices affecting the property. Have a conveyancer review it before you make an offer; a defective Section 32 can give you grounds to withdraw.

### Is there a cooling-off period when buying a house in Victoria?

Yes for private sales: three clear business days from signing, with a penalty of $100 or 0.2% of the price, whichever is greater. There is no cooling-off at auction, for a purchase within three clear business days before or after a publicly advertised auction, or where your lawyer negotiated the contract for you.

### How long does settlement take in Victoria?

The settlement period is set in the contract, usually 30, 60 or 90 days from signing. Sixty days is most common in Melbourne because it allows time for formal approval, valuation, transfer preparation and lender processing. Shorter settlements are possible if your finance is already approved; longer ones are sometimes negotiated for new builds or when the vendor needs time to move.

### What happens if my finance falls through after signing?

If the contract is subject to finance and you notify the vendor in writing before the finance deadline, you can end the contract and recover your deposit. If the contract is unconditional, as at auction, you are bound to complete; failing to settle can cost you the deposit and expose you to damages. See [what happens if finance falls through](/legal/what-happens-if-finance-falls-through/).

### Do I need a conveyancer or a lawyer to buy a house?

You need one or the other. Licensed conveyancers handle most straightforward residential purchases in Victoria at a fixed fee, including Section 32 review, transfer preparation and PEXA settlement. A property lawyer is worth the extra cost for complex contracts, off-the-plan purchases with long sunset clauses, or where disputes are likely.

## Talk to GNT Finance

Every step above goes more smoothly when your finance is organised early and the person handling it knows Melbourne's northern suburbs. Gorakh Timilsina and GNT Finance manage pre-approval through to settlement, coordinate with your conveyancer and keep the finance deadline in view so nothing slips. [Book a free consultation](/contact/) or call 0426 403 703 to start.