A typical first home buyer journey in Victoria takes three to six months from serious property hunting to keys. The process has standard phases (pre-approval, inspection, contract, conditions, settlement) with Victorian-specific timeframes — the 3-business-day cooling-off period after signing, the 14–21 day subject-to-finance window, the 60-day average settlement on PEXA. Knowing the sequence and the deadlines for each phase prevents the rushed decisions that produce expensive contract mistakes.
This guide maps the timeline week by week, with the Section 32 and Contract of Sale checks that anchor each phase. It is descriptive of a typical purchase, not prescriptive — your specific timeline depends on the property type (off-the-plan adds years to settlement), the lender's approval speed, and whether you're buying via auction or private sale.
Phase 1: Pre-purchase (8–12 weeks before signing)
Week minus-12 to minus-8: Lender pre-approval
Apply for conditional loan pre-approval with one or more lenders. Pre-approval is not a guarantee — it's the lender's view that, based on your stated finances, you could borrow up to a specified amount. Pre-approval typically lasts 90 days and can be extended. Use this period to understand your borrowing capacity, the mortgage products available (fixed, variable, offset, redraw), and the lender's price-cap and property-type exclusions (some lenders won't lend on small studio apartments, others have post-code blacklists for high-density precincts).
First home buyers should also confirm First Home Guarantee eligibility at this stage if relevant — the program has place caps and a separate application stream. See our First Home Buyer Schemes guide for the full list of programs and how they stack.
Week minus-8 to minus-4: Build the full cost picture
Use the deposit + borrowing capacity figure to compute the target purchase-price range. Add the closing costs that most first home buyers underestimate: stamp duty (or zero, if FHB exemption applies), conveyancing, building and pest inspection, mortgage establishment fees, lender fees, settlement rate adjustments, and the first three months of utility connections. The settlement cost calculator and stamp duty calculator produce specific figures for your situation.
Week minus-4 to 0: Property inspections
Visit open inspections, attend auctions as observer, and narrow the search to a target suburb or price range. Order a title search and the planning report on any property that looks serious; the seller's Section 32 will include a current title search but reviewing it independently first surfaces issues (unusual easements, restrictive covenants, contamination overlays) earlier in the process when you have more flexibility to walk away.
Phase 2: Contract signing (the moment of commitment)
Day 0: The contract is signed
The buyer signs the Contract of Sale and the Vendor's Statement (Section 32). At auction, this happens immediately at the auctioneer's table after the hammer falls — there is no review window between bid acceptance and signing. At private sale, signing is typically scheduled a few days after agreement and the buyer can review the Section 32 in detail before the pen touches the paper.
The 10% deposit is paid at this point (or the negotiated smaller deposit on private sale; auction deposits are always 10%). The deposit is held in the agent's trust account until settlement.
Days 1 to 3: Cooling-off (private sale only)
For private-sale purchases, Victorian buyers have 3 clear business days from signing to withdraw. The withdrawal penalty is 0.2% of the purchase price or $100, whichever is greater — on a $700,000 home, $1,400. The cooling-off period is the buyer's safety net to do the post-signing checks (building inspection, full contract review, finance confirmation) without committing the full deposit.
Cooling-off does NOT apply to auction purchases or to purchases within 3 business days of a passed-in auction. See Cooling-Off Period in Victoria for the full rule set.
Phase 3: Conditions period (1–4 weeks after signing)
Days 1 to 14: Building and pest inspections
Schedule the building inspection (typically $400–$700) and pest/termite inspection (typically $250–$450) within the cooling-off window for private-sale purchases. For auction purchases, these should have been done before bidding — the auction contract is unconditional. The inspection reports identify structural issues, dampness, electrical defects, and active or past termite damage. See our guides on building inspections and pest and termite inspections.
Days 1 to 21: Subject-to-finance approval
For private-sale contracts with a subject-to-finance condition, the typical deadline is 14 to 21 days from signing. The lender progresses the application from conditional pre-approval to unconditional approval in writing. Common holds: property valuation comes in below purchase price, the lender wants additional income verification, or the OC certificate raises building-defect concerns the lender's policy excludes.
If finance is not approved by the deadline, the buyer notifies the vendor's solicitor in writing within 2 business days and rescinds the contract; the deposit is returned in full. See Subject to Finance Clause for the formal mechanics.
Days 1 to 30: Section 32 + Contract review
Even with cooling-off and subject-to-finance protections in place, the substantive Section 32 review should happen as early as possible. The earlier any disclosure issues surface, the more options the buyer has — rescind under Section 27 of the Sale of Land Act if material defects exist, negotiate a price reduction, or proceed with eyes open. Our pre-contract review service produces a structured report typically within minutes, so this phase doesn't need to wait for a solicitor's calendar.
Phase 4: Pre-settlement (weeks 4 to 8 after signing)
Conveyancing preparation
The conveyancer or solicitor prepares the Statement of Adjustments (rates and outgoings prorated to settlement date), arranges for stamp duty to be paid via Duties Online, and lodges the relevant first home buyer or PPR concession forms with the State Revenue Office. The lender prepares loan documentation and sends it to the buyer for signing. First home buyers should confirm the FHB exemption was applied in the duty calculation — see our Conveyancer vs Solicitor guide for whether your purchase needs a solicitor's involvement.
Pre-settlement inspection
The buyer (or their representative) inspects the property within 7 days of settlement to confirm: the property is in the same condition as at sale, all chattels included in the contract (dishwasher, blinds, etc.) are present, all excluded items have been removed, and any agreed repairs have been completed. Defects identified at this stage can be raised with the vendor's solicitor before settlement.
Phase 5: Settlement day
Settlement typically occurs 30 to 90 days after contract signing — 60 days is the most common — and happens on the PEXA platform for nearly all Victorian transactions. The buyer's conveyancer, vendor's conveyancer, and both lenders coordinate via the PEXA workspace. At the agreed settlement time (usually mid-afternoon), title transfers and funds clear simultaneously. The agent releases the keys to the buyer once the conveyancer confirms settlement completed.
See What is PEXA? for how the digital process works, and The Settlement Process in Victoria for the step-by-step coordination.
Phase 6: Post-settlement
First mortgage repayment is typically due 30 days after settlement, depending on the lender. Connect utilities (electricity, gas, water, internet) — most have move-in offers that take a week or two to activate. Arrange contents insurance from settlement day forward; building insurance is usually arranged before settlement as part of the lender's conditions. For apartment purchases, register with the Owners Corporation and request the building rules and committee meeting minutes.
Common timeline disruptions
- Off-the-plan settlements can extend 2–5 years from contract signing. The contract specifies a sunset clause governing what happens if the developer doesn't deliver. See Sunset Clauses for the buyer-side rules.
- Failed building inspection can compress the conditions phase if the buyer wants to renegotiate based on findings. Best handled inside the cooling-off window for private sales.
- Lender valuation shortfall (the property's appraised value comes in below the purchase price) can require a top-up deposit, a renegotiated price, or rescission under subject-to-finance.
- Disclosure defects in the Section 32 can extend the contract via Section 27 rescission rights — see Section 27 Rescission.
Conclusion
The first home buyer timeline in Victoria has standard phases and standard durations, but the contract and Section 32 review is the single point in the sequence where a buyer's optionality is highest and their cost of correction is lowest. Investing time in that review — using cooling-off where it applies and getting a contract review before signing where it doesn't — converts the rest of the timeline from anxious to procedural.