Everything you need to know about stamp duty exemptions in Victoria

If you’re buying a property in Victoria, you’ve likely come across the term stamp duty. It’s a major cost that can add tens of thousands of dollars to your budget. But the good news is, you might not have to pay the full amount. 

Whether you’re a first home buyer, pensioner or looking at an off-the-plan property, there are stamp duty exemptions and concessions in Victoria that could save you a significant amount.

However, these reliefs and eligibility rules can change frequently, so it’s important to stay up to date and get expert advice.

What is stamp duty and why does it matter in Victoria?

Stamp duty, also called land transfer duty, is a tax you pay when you buy property in Victoria and is paid to the State Revenue Office (SRO).

The calculation of stamp duty in Victoria is based on the “dutiable value” of the property. This is usually the higher of either the purchase price or the market value of the property. The rates are applied on a sliding scale, meaning the higher the property value, the greater the amount of stamp duty you’ll pay. 

Land transfer duty for contracts entered into on or after 1 July 2021

Additionally, the usage of the property, such as whether it’s your primary residence or an investment, can also influence the duty payable. 

Fortunately, various stamp duty exemptions and concessions are available to eligible buyers, helping to reduce this significant upfront cost.

Who is eligible for stamp duty exemptions in Victoria?

Victoria offers several pathways to reduce your stamp duty burden. Eligibility for these exemptions and concessions largely depends on your circumstances and the nature of the property purchase. 

First home buyers

If you’re purchasing your first home in Victoria, you could join the more than 40,000 first home buyers who received stamp duty relief in the 2023-24 financial year, according to the SRO (see table).

The first home buyer Victoria stamp duty exemption or concession is only available to you once. If you or your partner has previously benefited from the first home buyer exemption, you can’t receive it again.

Pensioners

Eligible pensioners and concession card holders may qualify for a pensioner concession. If you’re purchasing a home valued at $600,000 or less, you may qualify for a full exemption. Homes valued from $600,001 to $750,000 may qualify for a concession. This only applies to properties that you intend to use as your principal place of residence (PPR). If you are buying your first home, you may also be eligible for other concessions and benefits.

Off-the-plan buyers

The Victorian government offers concessions for off-the-plan purchase, as well as a temporary concession (available until October 2026) for new builds in strata subdivisions with common property. 

Principal place of residence

If you intend to live in the property as your primary home for a continuous period of at least 12 months, you may be eligible for a concession. This is available to all home buyers, not just first home owners, if your property is valued up to $550,000.

First home buyer stamp duty concessions in Victoria

According to the Australian Taxation Office (ATO), 37,882 first home buyers took out new home loans for their PPR in 2024. This was an 11.2% increase from 2023.

If you’re one of the many first home buyers planning to purchase soon, knowing what financial relief you’re entitled to is a smart first step.

As a first home buyer in Victoria, you could receive:

  • A full stamp duty exemption for properties with a dutiable value of $600,000 or less. This means you pay no stamp duty at all, representing substantial savings.
  • A concession for properties with a dutiable value between $600,001 and $750,000. The amount of the concession scales down as the property value increases within this range.

For example, if your first home is valued at $595,000 you will pay no stamp duty. This saves you around $30,770.

If your home costs $700,000, your payable duty will be $24,713. But, without the first home buyer concession, this would jump to $37,070.

If you paid $800,000 for your first home, you are over the concession threshold and will pay the full $43,070 (unless other exemptions apply).

First home buyers in Victoria can benefit from both the stamp duty concession or exemption, as well as the First Home Owners Grant (FHOG). The FHOG is a direct payment for new homes, while the stamp duty concession is a reduction in the amount of land transfer duty you pay.

Off-the-plan stamp duty concessions: What you need to know

Buying off the plan (before construction or while it’s underway) may qualify you for stamp duty relief. In Victoria, there are two types of concessions that could apply:

1. Dutiable value concession

 When purchasing an established home, you pay stamp duty on the dutiable value of your property. This is usually what you paid for it or the market value. However, for the off-the-plan concession, the dutiable value is the contract price minus the construction costs incurred after you signed the contract. As this reduces the dutiable value, you will likely pay less stamp duty.

For example, you make an off-the-plan purchase for $620,000. Of that amount, your builder says $465,000 will be used to construct your home. That means your dutiable value will be $155,000 (contract price of $620,000 minus construction costs of $465,000.

Eligibility for this concession can depend on your contract date and any other concessions you may qualify for. It is recommended you speak to a mortgage broker to verify.

2. Temporary off-the-plan concession

Introduced in 2024, under this concession, all buyers (including investors) are eligible for a concession on off-the-plan purchases within strata subdivisions that have common property. This can include apartments and townhouses.

The temporary concession was due to end in October 2025 but has subsequently been extended to apply to all eligible purchases up to 20 October 2026.

How to apply for stamp duty exemptions in Victoria

Applying for a Victoria stamp duty exemption or concession usually occurs as part of the conveyancing process. Your conveyancer or solicitor will typically apply for the exemption or concession as part of the electronic conveyancing process, but it’s good to understand the steps involved.

Here’s a general guide to the application process:

1. Gather all documents

You’ll need to provide documentation to prove your eligibility. This commonly includes:

  • A copy of the contract of sale
  • Title details and transfer of land documentation
  • Proof of residency, if applicable (e.g. driver’s licence, utility bills)
  • Concession card details for pensioner exemptions
  • Any other supporting evidence for your claim (e.g. proof of being a first home buyer)

2. Complete the Digital Duties form

The SRO mandates the use of the Digital Duties Form for all land transfer duty transactions. This online form is where your conveyancer will declare details of your property purchase and apply for any eligible Victoria stamp duty exemptions or concessions.

3. Await response

Once submitted, the SRO will assess your application and notify you of the outcome. If approved, the stamp duty payable will be adjusted accordingly.

Common mistakes and things to consider when applying

While stamp duty exemptions or concessions can offer significant savings, it’s also important to be aware of the potential ways you could be disqualified and other common mistakes:

Buying over the threshold amount

Be vigilant about property values. If your property’s dutiable value exceeds the maximum threshold for a full exemption, you may only qualify for a concession or no exemption at all.

Using the property as an investment (when not allowed)

Some stamp duty concessions in Victoria are conditional on the property being your primary home. Using it as an investment property or failing to move in within the stipulated timeframe (usually 12 months) can lead to your exemption being revoked and duty becoming payable.

Failing to meet residency requirements

For concessions tied to your PPR, you must generally reside in the property for a continuous period (at least 12 months). If your circumstances change and you cannot meet this requirement, you must notify the SRO.

Incorrectly completing documentation

Errors or omissions on the Digital Duties Form or supporting documents can delay your application or even lead to rejection. Double-check all details, including contract dates, prices and personal information.

Not accounting for other costs

Stamp duty exemptions only relate to the transfer of the land or property itself. You will still be responsible for other property costs including legal fees, conveyancing fees, building and pest inspections and loan fees.

How AXTON Finance can help you navigate stamp duty exemptions in Victoria

Understanding stamp duty exemptions in Victoria can be overwhelming – especially when it comes to eligibility criteria, property price thresholds and paperwork. That’s where we come in.

At AXTON Finance, we’re experienced Melbourne mortgage brokers, with a deep understanding of Victoria’s property processes. That means we know all the ways to save on your home purchase, including which Victoria stamp duty exemptions or concessions you may be eligible for. 

From first home buyers to off-the-plan purchasers, our team works closely with you to make your home buying journey as smooth – and cost-effective – as possible.

Get in touch with AXTON Finance today for expert advice on loans, grants and exemptions tailored to your unique circumstances. Call us on 03 9939 7576, email getabetterrate@axtonfinance.com.au or click here to get in touch.    

What’s behind Melbourne’s rising property prices and what buyers need to know 

After a challenging few years, Melbourne’s property market is staging a comeback. New data confirms that the city’s long-awaited price recovery is taking hold, driven by a combination of relative affordability, population growth, easing economic pressures and renewed buyer confidence. 

What’s happening with property prices? 

Melbourne home values are rising again. PropTrack’s June 2025 home value index revealed that dwelling values climbed for the fourth consecutive month, taking annual growth into positive territory (1%) for the first time in over two years.  

The city’s median house value now sits at $979,000, with units at $609,000.  

Domain expects this growth to continue, forecasting Melbourne’s median house price to hit $1.11 million by the end of the 2025-26 financial year – a 6% increase year-on-year. That would mark a full recovery from the 2022–2024 downturn. Units are projected to climb 5% to $584,000. 

What’s behind Melbourne’s rising property prices? 

Affordability advantage fuels demand 

One of Melbourne’s key selling points is its relative affordability compared to other major cities. In 2019, Sydney houses were 26% more expensive than those in Melbourne, according to Domain. As the graph below shows, by March 2025, that gap had grown to 63%.   

Meanwhile, Brisbane and Perth have now caught up to Melbourne on price, eroding the cost advantage they offered in recent years.  

In fact, as of June 2025, PropTrack’s data has Melbourne ranked sixth-most expensive city for median dwelling value, behind Sydney, Brisbane, Canberra, Adelaide and Perth.   

This shift is drawing interest from price-sensitive buyers and interstate investors, particularly as borrowing conditions ease.  

Strong population growth 

Another factor bolstering Melbourne’s outlook is population growth. After falling behind during the pandemic years, in 2024 Victoria’s population grew at the second-fastest rate of all states at 1.9%, according to the Australian Bureau of Statistics.  

The state accounted for 30% of the nation’s total population increase, its largest share in over a decade.  

This growth drives long-term demand for housing. More people mean more competition for properties, particularly in high-demand suburbs close to employment, education and transport hubs. 

Interest rate cuts boost buyer confidence 

A timely driver behind Melbourne’s property market turnaround has been the Reserve Bank of Australia’s (RBA) recent interest rate cuts. After a prolonged period of rate hikes aimed at cooling inflation, the RBA has now cut the cash rate twice in 2025, signalling a clear shift in monetary policy.  

Lower interest rates have a direct impact on buyer sentiment and affordability. As mortgage repayments ease, more buyers can enter the market, and existing buyers can stretch their budgets further. This creates increased competition for available properties, which in turn puts upward pressure on prices.  

Although the RBA surprised markets by holding the cash rate in July, it is likely that there are more cuts to come. With inflation continuing to trend lower and economic conditions softening, many economists anticipate further reductions in the cash rate into 2026.  

The RBA board itself forecasts the official cash rate will drop to 3.2% by mid-2026.  

The prospect of lower rates is fuelling a sense of urgency among buyers hoping to purchase before the market accelerates further.  

As borrowing capacity improves and confidence returns, interest rate cuts are helping to reignite the growth cycle, particularly in markets like Melbourne, where prices had previously stagnated. 

What do buyers need to know? 

Consider units if houses are out of reach 

While both houses and units are experiencing growth, house prices are expected to recover fully from the 2022-24 downturn and reach new records by the end of the 2025-26 financial year, according to Domain.   

Unit prices, while rising, are likely to lag behind and remain below their 2021 peak by June 2026. So while houses are leading Melbourne’s recovery, units offer a more affordable entry point. 

Look beyond the inner suburbs 

Outer and regional suburbs are playing a major role in Melbourne’s recovery. According to the Real Estate Institute of Victoria, Melbourne’s outer suburbs, such as Frankston, Frankston South and Rockbank have shown significant growth up 9%, 12.8% and 8.8% respectively in the June 2025 quarter.  

Be ready to compete 

Buyer demand is picking up quickly, but the number of properties for sale hasn’t kept pace. Total listings were down 0.8% year-on-year in June, according to SQM Research, tightening supply and intensifying competition across many price points.  

 

Get your finance sorted early 

With prices on the rise, borrowing power improving and listings still tight, this is a critical moment for Melbourne buyers. Acting early, and with the right support, can make all the difference.  

 Having pre-approval in place and a clear understanding of your budget can give you an edge in a fast-moving market, especially when the right property doesn’t stay available for long.  

Additionally, working with a Melbourne mortgage broker like Axton Finance, with a deep understanding of the Melbourne real estate market, can help you understand your options, secure competitive rates and act quickly when the right property comes along.  

Ready to capitalise on Melbourne’s rebound? Axton Finance can help you make the most of today’s conditions. As a trusted Melbourne mortgage broker, we’ll guide you through your options, maximise your borrowing power and structure your loan for long-term success. Call us on 03 9939 7576, email getabetterrate@axtonfinance.com.au or click here to get in touch.    

How to use your property’s equity to buy a second home 

Keen to buy a second property? Whether it’s an investment townhouse or a beach house, using the equity in your existing home could be a great way to get there without saving a full deposit all over again.  

What is home equity and how does it work? 

Home equity is the difference between your property’s current market value and the amount you still owe on your home loan.  

For example, if your property is worth $850,000 and your outstanding mortgage is $400,000, then your equity is $450,000.  

You can build equity in two ways:  

  • Making regular repayments that reduce your home loan balance and/or 
  • Benefiting from property value growth over time 

This growing equity can then be used as a resource to fund another property purchase, without needing to save a large cash deposit.  

How to use equity to buy a second home  

There are two main ways to access your home equity:  

  • Refinancing your current mortgage: This involves taking out a new, larger mortgage on your existing home, which pays off your old mortgage and releases the difference as cash. This cash can then be used as a deposit for your second property. 
  • Taking out a line of credit or home equity loan: This option allows you to access the equity in your home through a flexible line of credit. Generally, lenders will approve you for a set limit, and you can draw down funds as needed, similar to how a credit card works, but with your home as security. You can structure your line of credit so you only have to repay interest on the amount you borrow, making it a useful option for expenses or ongoing investment needs. 

Once you’ve accessed the equity, you can use those funds as a deposit for your second home or investment loan. This can be used to buy an investment property, providing rental income and potential capital growth, or to purchase that ideal holiday home for personal use. 

 How much equity do you need to buy a second property? 

Most lenders in Australia require you to retain at least 20% equity in your existing home before approving additional borrowing. This is known as usable equity. 

Calculating usable equity 

Let’s say your home is worth $850,000 and you owe $400,000 on your mortgage. Your lender’s policy is that you could potentially borrow up to 80% of the property’s value ($680,000). Subtract what you owe ($400,000) from 80% of the property’s value, and that leaves $280,000 in usable equity.  

Lender policies do vary. Some may offer more flexibility around income assessment or require higher or lower loan-to-value ratios. It’s important to speak to an experienced broker or lender to understand your options.  

The benefits of using equity to buy a second home 

Using your home loan equity to fund a second home can offer several advantages:  

  • No large cash deposit needed: One of the most significant benefits is avoiding the need to save up a substantial cash deposit for your next purchase. You’re using the value you’ve already built in your primary residence. 
  • Potential tax benefits: For investment properties, there can be potential tax deductions on interest and other expenses, making it a more attractive financial strategy. Speak to your accountant about this. 
  • Faster portfolio growth: Equity helps you build wealth sooner by expanding your property assets. 
  • Lower interest rates: Using your home equity through a loan or line of credit often means paying lower interest rates than taking out a separate home loan or saving for a new deposit. This can make accessing your equity a quicker and more affordable way to finance your second property. 

The risks and challenges of using equity for a second home 

While using equity can be a smart move, there are also potential downsides to consider:  

  • Increased debt: You are essentially borrowing more money against your home, which increases your overall financial commitments and monthly repayments. 
  • Market fluctuations: If property values decline, you could find yourself in a position where you owe more than your property is worth, known as negative equity. 
  • Impact on lifestyle: Higher mortgage repayments across two properties could put a strain on your day-to-day finances and affect your disposable income. 
  • Risk of over-leveraging: Borrowing too much against your equity can limit your future financial flexibility and make it harder to access funds for unexpected expenses or other opportunities. 
  • Cross-collateralisation: If your lender ties both properties to the same loan, it could reduce your flexibility. For example, selling one property might require the lender’s approval or impact the loan on the other, making it harder to restructure or refinance later

Before proceeding, it’s wise to run the numbers and get professional advice to make sure the strategy suits your circumstances and long-term goals. 

Equity loan vs refinancing: which option is better? 

When using equity to buy a second home, you’ll usually choose between two main options: refinancing your existing mortgage or taking out a separate equity loan.  

Both approaches use your current property as security, but they work in different ways. 

Refinancing involves increasing the size of your existing home loan to release equity. This option can offer lower interest rates and a simpler loan structure, as you’re consolidating your borrowing into one mortgage. However, refinancing may come with fees, such as break costs or new loan setup charges. 

A home equity loan, on the other hand, is a separate loan that uses your current home as collateral. It’s often available as either a lump sum or a line of credit and may offer fixed or variable interest rates. This option can give you more flexibility if you want to keep your original mortgage unchanged or need funds for different purposes. 

The right option for you depends on your financial goals, how much equity you want to access and the terms offered by your lender. A mortgage broker can help you weigh up the pros and cons based on your situation. 

How Axton Finance can help you use equity to buy a second home 

At Axton Finance, we help busy, time-poor people unlock the potential of their home equity to purchase a second property. Whether you’re buying a second home as a holiday house or an investment, we’ll guide you through your options and explain the process clearly. 

We compare hundreds of loan products from a wide range of lenders to find one that fits your goals. From calculating your usable equity to choosing the right loan structure, we’ll provide expert advice every step of the way. 

Thinking about using your home equity to buy a second property? Axton Finance can help. As a trusted mortgage broker near you in Melbourne, we’ll guide you through your options and ensure your loans are structured for long-term success. Call us on today 03 9939 7576, email getabetterrate@axtonfinance.com.au or click here to get in touch.    

Cross collateralisation explained – how it impacts your home and investment loan 

If you’ve got more than one property or are planning to invest in property, your lender might suggest something called cross-collateralisation. It’s a common lending strategy, but one that comes with risks you need to understand. 

Cross-collateralisation allows you to unlock equity in your existing properties without selling, but it also links your properties together in a way that can limit your flexibility. 

What is cross-collateralisation? 

Cross-collateralisation is when the same lender uses more than one property as security for a single loan, or for multiple loans that are linked across multiple properties. It means your lender can have a claim over several properties instead of just one. 

For example, say you purchased your first home with a home loan through a mortgage broker in Melbourne. Later, you decide to invest in a second investment property and secure an investment property loan. If your lender cross-collateralises these properties, they will register a mortgage over both your primary residence and your investment property to secure both the loan for your home and the loan for your investment property. You can actually borrow 100% plus costs this way with a single loan if you have the equity available! 

This also means you’re leveraging equity to grow your portfolio. But cross-collateralisation ties your properties together in a way that reduces your flexibility. 

Why cross-collateralisation can limit your flexibility 

One of the biggest drawbacks of cross-collateralisation is how it limits your ability to sell, refinance or restructure without involving all your properties and the bank’s assessment of the entire picture each time you make a decision. 

If you decide to sell one of the properties in your cross-collateralised portfolio, you can’t just sell it and pocket the proceeds. You’ll need to get the lender’s approval, which usually triggers revaluations of any remaining properties, and they might use the sale to reassess your loan terms. They might even keep some or all of the proceeds to reduce your overall loan balance. 

This kind of restriction can be frustrating for borrowers who want to: 

  •  Refinance one property for a better deal 
  • Sell a property to free up cash 
  • Renovate or improve one part of their portfolio 

Working with an experienced investment property loan broker can help you structure your loans in a way that supports flexibility and long-term growth. 

Pros and cons of cross-collateralisation 

Like any lending strategy, cross-collateralisation has its benefits and drawbacks. Here are some key points to consider: 

Pros

1. Helps unlock equity quickly

Using the equity in one property can make it easier to secure finance for another without needing a large cash deposit or multiple loan applications to achieve the same thing across two or more lenders. 

2. Creates simplicity

Some borrowers find it simpler to manage multiple loans under one lender, especially if they are new to property investment. 

3. May improve borrowing power

By securing your loan across multiple properties, lenders may be more willing to offer a higher loan amount than if each property were assessed individually and with different lending polices applied. 

Cons 

1. Less flexibility when exiting

As explained, selling, refinancing or restructuring one property becomes more complex when it’s tied to others. Lender approval is required, and you may not receive all the sale proceeds if they need you to reduce your remaining loan balances.  

2. Limited choice of lenders

If your properties are cross-collateralised, it can be difficult to switch just one loan to a different lender to get a more favourable interest rate or different terms. You might have to refinance all your loans simultaneously, which can be a complex and costly exercise.  

3. Increased exposure to risk

If the value of one of your properties decreases significantly, it can impact the equity available across all your properties. This could lead to a situation where you owe more than the combined value of your properties. 

What are the alternatives? 

The alternative to cross-collateralisation is keeping your loans and securities separate. This approach is sometimes called “standalone” or “non-cross-securitised” lending. 

With standalone lending: 

Each loan is secured by just one property usually up to 80% of its value but up to 95% in some circumstances 

  • You can refinance, sell or restructure without affecting other properties 
  • You keep more control over your portfolio 

A qualified mortgage broker can help you assess whether standalone or cross-collateralisation suits your strategy. It depends on your goals, equity, income and future plans. 

Speak to an experienced mortgage broker before you decide 

For some borrowers, cross-collateralisation can help unlock equity and support faster portfolio growth. But it’s not right for everyone and it’s something you should go into with your eyes open. 

Before you agree to link your loans or properties, speak to a home loan broker who understands how to structure lending for the long term. An expert mortgage broker in Melbourne who clients trust will help you weigh the pros and cons, assess your risk, and explore smarter ways to use your equity. 

Thinking about using cross-collateralisation to grow your property portfolio? Axton Finance can help. As a trusted mortgage broker in Melbourne, we’ll guide you through your options and make sure your loans are set up for long-term success. Call us on today 03 9939 7576, email getabetterrate@axtonfinance.com.au or click here to get in touch.   

Simultaneous settlement – how to buy and sell property on the same day 

Planning to upgrade or downsize your home? A simultaneous settlement lets you buy and sell on the same day – avoiding the cost and stress of bridging loans or short-term rentals. But pulling it off takes a little smart planning and teamwork. 

What is simultaneous settlement? 

A simultaneous settlement means the funds from the sale of your old home are used, in real-time, to complete the purchase of the new one.  

This ensures a seamless transition and is a common strategy in competitive property markets like Sydney or Brisbane, where property prices are high and timing is important. 

How does simultaneous settlement work? 

Achieving a simultaneous settlement requires planning and communication between all parties involved, including you (the homeowner), the buyer of your old property, the vendor of your new property, both real estate agents, two conveyancers and the lenders for all parties.  

Should you buy first or sell first? 

Before coordinating the moving parts of a simultaneous settlement, you first need to decide whether you should buy or sell first.  

In a rising market, many people choose to buy first. This gives you time to find the right property and potentially buy before prices climb even higher. The downside is that if your current home takes longer to sell or goes for less than expected, you could be left covering two mortgages (bridging finance) or falling short of what you need to complete the purchase.  

In a softer market, many buyers believe selling first is the safer bet. This removes the pressure to accept a low offer and gives you a clear budget for your next purchase. However, you may need to line up short-term accommodation if you can’t find a new home quickly.  

Whatever your approach, extended settlement periods and smart negotiation strategies, like making your offer subject to the sale of your current property, can help line up both transactions and increase your chances of a same-day settlement.  

The process typically involves: 

1. Getting pre-approval 

Before you start house hunting, speak to an experienced home loan broker about your mortgage. A good broker can assess your financial situation, develop a strategy and help you secure pre-approval for your next home loan. This gives you a clear understanding of your borrowing capacity and demonstrates to real estate agents that you are serious and financially prepared. 

2. Aligning settlement dates 

Once you’ve found a buyer and your next property, the next step is to negotiate settlement dates that match. This can take skilled negotiation from agents, buyers’ advocates (if you use one) and conveyancers on both sides.  

During this process, the agents may request a longer settlement period, perhaps 60 to 120 days, on both contracts to provide a sufficient buffer to get everything in order. You may also be required to be flexible in both your selling price expectations and your new property criteria.  

3. Coordinating home loans 

Once contracts are exchanged and settlement dates are set, your mortgage broker will begin preparing the formal loan application for your new property. At the same time, the lender for your current mortgage will be notified of the upcoming discharge.  

There’s a decent amount of paperwork here, and timing is everything. Thankfully, your mortgage broker does the heavy lifting for you. Your home loan broker will work closely with both lenders to ensure the funds from your sale are released in time to fund your purchase. This may also include managing any loan top-ups or redraws, and ensuring valuations are completed promptly. 

4. Managing legal communication 

Each property requires a conveyancer or solicitor to handle the legal aspects of settlement. For simultaneous settlement to succeed, both conveyancers need to communicate regularly to make sure that: 

  • All documentation is accurate and complete 
  • All funds are accounted for, including the deposit and balance payments 
  • The order of settlements is correctly arranged through PEXA (Australia’s digital property settlement platform) – the sale usually settles just before the purchase 

If the timing is off, the entire chain can be delayed, so having reliable legal support is essential. In some cases, especially when buying before selling, your solicitor may recommend including a “subject to sale” clause in the contract. This condition allows you to make a purchase offer that’s only binding once your existing home has sold, helping reduce financial risk, but this can reduce the strength of your offer. 

5. Completing both settlements on the same day 

On settlement day, both properties settle, usually within hours of each other. Typically, your current home will settle first, with those funds immediately directed (via your lender) to fund the purchase of your new home.  

If all goes according to plan, the keys to your new home will be handed over that afternoon. 

What could go wrong with simultaneous settlement? 

Unfortunately, if one settlement is delayed, it can create a bit of a problem. 

Some common risks include: 

  • Delays with finance approval: It is helpful if your new home loan is fully approved and ready in advance. That’s why working with an experienced mortgage broker can make all the difference. 
  • Issues with the buyer’s finance: If your buyer’s loan isn’t ready, your sale could fall through or be delayed, which then impacts your ability to settle your purchase.
  • Contract mismatches: Settlement dates must be exactly aligned in the contracts of sale and purchase.
  • Property defects discovered late: Structural issues, pest problems or building compliance matters identified during final inspections can derail transactions at the last minute.
  • Legal documentation delays: Missing certificates, title issues or incomplete paperwork can prevent settlements from proceeding on schedule.

To reduce these risks, it’s important to plan ahead, give yourself buffer time and ensure your loan application is complete and accurate from the outset. 

How can an expert mortgage broker help with a successful simultaneous settlement? 

A great mortgage broker can help manage the timing of your home loans to ensure your finance is in place when you need it. 

 This can involve:  

  • Pre-approval guidance: A mortgage broker can assist buyers in securing conditional approval, helping you make a confident and competitive offer when purchasing a property.
  • Loan structuring: Whether you are upsizing, refinancing or unlocking equity, a broker will structure the finance to support the timing of both the sale and purchase.
  • Coordination: The broker coordinates with your solicitor, conveyancer and lender to ensure the financial side of the settlement stays on schedule.
  • Plan B options: If simultaneous settlement becomes too risky or tight, a broker can walk you through alternative strategies such as bridging finance or short-term refinancing.

Simultaneous settlements are actually quite common and when managed properly can remove a lot of stress and complexity (ie no bridging finance is required), but they require careful planning, strong communication and the right professionals on your side. An experienced home loan broker can make all the difference, ensuring your finance is ready, your timing is right and your move goes smoothly from start to finish.  

If you’re planning to buy and sell on the same day, AXTON Finance can help. As a trusted mortgage broker in Melbourne, we’ll coordinate with your legal team and lender to keep everything on track. Email us at getabetterrate@axtonfinance.com.au or click here to get in touch.  

What buyers need to know about Victoria’s housing shortage

Victoria’s housing market has been under intense pressure in recent years, with supply struggling to keep pace with demand. 

In 2023, the state government pledged to facilitate the building of 800,000 new homes by 2034, a target that requires at least 80,000 new homes to be completed each year.

However, the state fell short in 2024. Australian Bureau of Statistics (ABS) data shows only 60,220 dwellings were completed in 2024. While that’s an improvement on 2023’s 56,435, it’s still 20,000 homes short of the annual goal.

At the same time, Victoria’s population grew by more than 146,000 people in the 12 months to September 2024. This increase of 2.1% annually was the second-fastest growth rate in the country, according to the ABS. 

More people means more pressure on housing – making the supply gap even more urgent.

How the shortage happened

Several key factors explain this shortfall:

1. Labour and skills shortage

One of the biggest constraints is a chronic shortage of skilled tradespeople and construction workers. In October 2024, the Housing Industry Association (HIA) estimated the country would need an additional 83,000 tradies to reach national housing targets.

Both the HIA and Master Builders Association report losing residential construction workers to other sectors, particularly government infrastructure projects. Meanwhile, the pipeline of apprentices and skilled labour isn’t being replenished fast enough.

Without enough workers, construction slows, pushing back completion timelines and limiting the number of homes delivered to market.

2. Supply chain disruptions and rising costs

Global instability and supply chain challenges over recent years have increased the cost of building materials and delayed their delivery.  

According to Ray White, construction costs have started to moderate. In March 2025, Victoria was the only state to record a decline in construction costs, when prices dropped 1.9% annually. This marks a clear shift from the cycle’s peak in mid-2022, when prices were growing 25% or more annually. 

However, moderating costs don’t mean affordability has returned. New homes remain expensive to build – and to buy.

3. Tax and regulatory burdens

Victoria’s relatively high property taxes, including recent land tax hikes on investment properties, have discouraged investors, reducing their willingness to invest in new developments. 

Developers and industry groups have called for tax relief or reform, arguing that without it, many projects risk delay or cancellation.

4. Slowdown in project commencements

There’s now a widening gap between the number of dwellings approved and those actually under construction. As the graph below shows, ABS recorded 55,888 dwelling approvals in Victoria in 2024, but only 33,848 construction starts.

This gap may be due to financing difficulties, labour shortages, and cautious market sentiment amid affordability concerns – or all of the above. Whatever the cause, the result is a growing backlog of unmet housing demand.

What the shortage means for the property market

1. Continued upward pressure on prices

Despite a slowdown over the last few years, Melbourne’s property prices have turned around, increasing 1.2% since the beginning of the year, according to Cotality.

With housing supply already falling short, long-term demand is only expected to grow. Victoria’s population is projected to reach 10.3 million by 2051, according to the latest Victoria in Future projections. Annual growth is expected to average 9.7% by 2026 and 8% by 2036.

This sustained population growth, without a corresponding increase in housing, is likely to keep prices rising in the years ahead.

2. Rising rents and rental scarcity

Victoria’s rental market is tight, partly due to investors retreating amid tax hikes and in response to increased costs. 

The number of rental bonds lodged in Victoria dropped by more than 20,000 in 2024, according to PIPA, following the increased land tax bills. This has reduced the overall rental stock and increased pressure on tenants.

Melbourne’s rental vacancy rate dropped to 1.8% in April, according to SQM Research and has hovered below 2% since early 2022. Asking rents have risen accordingly – up 2.0% in the 12 months to June – as competition for limited rental properties remains fierce.

Government’s response

The Victorian government has taken steps to try and boost housing supply and ease affordability pressures. The 2025-26 state budget included several initiatives:

  • Extension of off-the-plan stamp duty concessions: Buyers of apartments, units and townhouses on strata titles will keep benefiting from reduced stamp duty on the land component until October 2026.
  • Investment in infrastructure and housing: The budget committed $24 million to develop up to 300,000 new homes near tram and train hubs, and $12 million for planning 13,200 new homes with backyards in Melbourne’s outer suburbs.

Despite these measures, experts said the budget does not do enough to support homebuyers. 

The HIA argued that more significant action, like planning reform that streamlines approvals, would do more to add to the state’s housing shortage.

Looking ahead

Victoria’s housing shortage is unlikely to ease without addressing the root causes: labour shortages, high construction costs, supply chain issues and taxation pressures.

That said, ongoing stamp duty concessions and targeted infrastructure investment may present new opportunities for buyers and investors – particularly in emerging development corridors.

With the state’s population set to continue growing, private investment will be crucial to easing the pressure on both the housing and rental markets.

For buyers and investors, working with an experienced mortgage broker can give you a strategic edge. A broker can help you find the right loan, maximise your borrowing power and navigate the finance process, so you can act with confidence in a competitive environment.

Thinking about buying your next home or investment property? Reach out to Axton Finance, a skilled mortgage broker in Melbourne, for expert advice and personalised loan options that put you ahead in Melbourne’s competitive market. Email us at getabetterrate@axtonfinance.com.au or click here to get in touch. 

Melbourne’s housing market is showing signs of growth

Melbourne’s housing market is gaining momentum in 2025, with outer suburbs leading the way in growth and demand.

The latest data from Cotality’s (formerly CoreLogic’s) May 2025 home value index shows the city’s market rose modestly between April and May – house prices were up 0.5%, while units grew 0.4%.

While not rapid growth, it’s a meaningful sign of recovery after a flat two-year stretch. So far this year, house prices have risen 1.4%, while units have grown 0.8%.

This steady uptick reflects improving buyer sentiment, helped by recent Reserve Bank of Australia (RBA) rate cuts and more accessible borrowing conditions. The median Melbourne house is now valued at $939,965, ranking fourth behind Sydney, Brisbane and Canberra. A median-priced unit costs $614,689, the third highest behind Sydney and Brisbane.

Despite this rebound, prices remain 4.2% below their March 2022 peak – offering potential value for buyers looking to enter or re-enter the market.

In regional Victoria, the picture is similar. House values grew 0.6% between April and May, while units rose 0.9%. Year-to-date, house prices are up 1.8% and units 0.7%.

Outer suburbs lead the way

The stronger performance of outer suburban areas is a key trend in this recovery. As the Cotality map below shows, 38.0% of suburbs located 20km or more from the city’s CBD recorded growth, with locations like Hume, Frankston and Casey emerging as standout performers. 

By comparison, only 4.0% of suburbs within 5km of the CBD saw a rise in dwelling values.

This shift reflects both current affordability and strong long-term growth potential, especially as infrastructure and planning changes reshape the city’s outer suburbs. Major infrastructure projects like the Suburban Rail Loop (SRL) are highlighting potential locations for growth. The SRL East will link Cheltenham, Clayton and Box Hill, making outer locations far more connected and desirable.

At the same time, the state government’s ‘Train and Tram Zone’ plans aim to unlock more than 300,000 new homes around centrally located zones by 2051. These ‘activity centres’ will streamline planning controls to enable higher-density housing close to train stations and tram corridors, particularly in high-growth outer areas. 

These policies are likely giving buyers greater confidence that today’s affordable suburb could be tomorrow’s hotspots.

Factors influencing Melbourne’s market

Several factors are contributing to Melbourne’s growth:

  1. Interest rates: The RBA’s rate cuts in February and May have made borrowing more accessible. And with the potential for more cuts later this year, buyer confidence is likely to keep building.
  2. Supply constraints: Despite consistently outperforming other states in building completions, Victoria’s housing supply lags behind demand, due largely to the state’s strong population growth. This imbalance between supply and demand is putting upward pressure on prices.
  3. Investor confidence: After a period where investors had lost confidence in Melbourne, that appears to have shifted. As the graph below shows, the number of new home loan commitments to investors in Victoria has risen steadily since June 2023, according to the Australian Bureau of Statistics.

Investor home loans were up 11.5% in the March 2025 quarter compared to the same time last year. In contrast, national investor numbers rose just 8.8% over the same period.

Post-election confidence, strong migration and the perception that Melbourne is undervalued are all contributing to the rebound. In fact, Australian Property Investor Magazine’s Q1 2025 sentiment report found that 19% of investors rated Victoria as offering the best prospects – second only to Queensland.

Looking ahead

Many analysts anticipate that Melbourne’s housing market will continue to experience steady growth. Projections for home values in 2025 range from 3-5% growth predicted by Domain to 2-6% increase expected by SQM Research

With immigration surging and infrastructure development adding positive sentiment, Melbourne’s long-term potential remains strong. Recent PropTrack analysis found that house prices in the city could climb 17% over the next five years, reaching a median value of $1.001 million by 2030. 

What does this mean for buyers?

Today’s market presents a potential window of opportunity. Prices are rising, but still below peak – giving buyers the chance to act before further gains.

Buyers looking to upgrade or invest can benefit from the improved borrowing conditions driven by both the recent and expected rate cuts, which reduce the cost of finance and increase borrowing capacity.

Additionally, for those willing to look beyond the inner city, the city’s outer suburbs could offer a strategic chance to build equity in a market set for steady growth over the coming years.

An experienced mortgage broker in Melbourne can help you find the right loan, maximise your borrowing capacity and simplify the process. If you’re an investor, a specialist investment property mortgage broker in Melbourne can provide valuable guidance tailored to your strategy.

Thinking about buying your next home or investment property? Reach out to Axton Finance, a skilled mortgage broker in Melbourne, for expert advice and personalised loan options that put you ahead in Melbourne’s competitive market. Email us at getabetterrate@axtonfinance.com.au or click here to get in touch. 

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