Compare 32+ lenders for Melbourne properties. From CBD to Bayside, Western suburbs to Mornington Peninsula. Expert local knowledge, competitive rates, fast approval. Servicing all Melbourne suburbs.
Australia's second-largest property market. Cultural capital with diverse suburbs, strong rental yields, and steady growth.
$850K
Units: $550K | Inner suburbs: $1.2M+ | Bayside: $1.5M+ | Western suburbs: $700K | Growth corridors: $600K
10-year growth: 58%. Recent 12 months: +6.8%. More affordable than Sydney with strong fundamentals. Best value capital city for growth.
Clayton, Frankston, Werribee (growth). Brighton, Toorak, Armadale (premium). Cranbourne, Melton, Wyndham (affordable entry).
32+ lenders active in Melbourne. Major banks, credit unions, non-banks. Competitive rates, especially for investor loans and refinancing.
5.2M residents. Growing 2% annually. High immigration, strong jobs market. Cultural diversity drives property demand across all price points.
Finance, healthcare, education, tech, manufacturing. CBD, Docklands, Clayton, Monash precinct. Strong lender confidence in Melbourne employment.
Real borrowing scenarios for Melbourne properties. Based on current serviceability rules and 5.5% assessment rate.
Entry-level Melbourne suburbs
Annual Income
$85,000
20% Deposit Saved
$100,000
Maximum Borrowing Capacity
$425,000
Purchase price up to: $525,000 (with $100K deposit)
Target suburbs: Cranbourne, Melton, Werribee, Pakenham, Sunbury. Units in Footscray, Reservoir, St Albans. Outer growth corridors with good train access.
Typical loan structure: 20% deposit (no LMI), 30-year term, variable rate 6.2%. Monthly repayment approx $2,550. May qualify for First Home Owner Grant ($10,000) or stamp duty concessions.
Middle ring Melbourne suburbs
Combined Income
$160,000
15% Deposit Saved
$130,000
Maximum Borrowing Capacity
$800,000
Purchase price up to: $930,000 (with $130K deposit + LMI)
Target suburbs: Bentleigh, Glen Waverley, Preston, Coburg, Oakleigh, Brunswick. Houses in middle ring. Good schools, transport, amenities. Strong rental demand if investing.
Typical loan structure: 15% deposit ($130K) + LMI ($18K-$25K), 30-year term, variable or 2-year fixed at 6.0%. Monthly repayment approx $4,800. Consider offset account for tax deductions if investment property.
Inner Melbourne and Bayside
Combined Income
$250,000+
20% Deposit
$350,000
Maximum Borrowing Capacity
$1,250,000
Purchase price up to: $1,600,000 (with $350K deposit)
Target suburbs: Brighton, Toorak, South Yarra, Armadale, Hawthorn, Camberwell, Canterbury. Inner city apartments, Bayside houses. Blue-chip areas with strong capital growth and prestige.
Typical loan structure: 20% deposit (no LMI), 30-year term, variable rate with professional package (5.8%-6.0%), offset account, redraw facility. May split loan 50/50 fixed/variable. Consider interest-only for investment properties.
Find the right Melbourne suburb for your borrowing capacity. Organized by median house price and distance from CBD.
Perfect for first home buyers and investors. Outer suburbs with growth potential. Strong rental demand from growing families and young professionals.
Western Growth Corridor
Melton, Werribee, Wyndham Vale, Tarneit, Point Cook. 25-35km from CBD. New estates, schools, shopping centers. Excellent train access to city.
South-East Growth Corridor
Cranbourne, Clyde, Officer, Pakenham, Berwick. 35-45km from CBD. Family-friendly, affordable land, new developments. Monash Freeway access.
Northern Growth Corridor
Craigieburn, Mickleham, Donnybrook, Sunbury. 25-40km from CBD. New estates with modern facilities. Hume Highway and train access.
Units in Established Areas
Footscray, Reservoir, St Albans, Thomastown, Broadmeadows. 10-20km from CBD. Older units, good transport, multicultural areas.
Established suburbs with good amenities. Mix of houses and townhouses. Strong schools, transport, and lifestyle options. Good for upgraders and growing families.
Eastern Suburbs
Clayton, Glen Waverley, Oakleigh, Bentleigh East, Mount Waverley. 15-25km from CBD. Excellent schools, Monash Uni area. Asian food precincts.
Northern Suburbs
Preston, Coburg, Reservoir, Northcote, Thornbury. 8-15km from CBD. Gentrifying areas, hipster cafes, good tram access. Strong rental demand.
South-Eastern Suburbs
Moorabbin, Mentone, Mordialloc, Chelsea, Carrum. 15-25km from CBD. Near Bayside, good schools, beach access. Frankston line train.
Western Suburbs
Yarraville, Seddon, Williamstown, Newport, Altona. 8-15km from CBD. Bayside access, village feel, good cafes. Gentrifying rapidly.
Premium established suburbs. Period homes, good schools, leafy streets. Close to CBD. Strong capital growth areas. Family-focused with excellent amenities.
Inner East
Hawthorn, Kew, Camberwell, Surrey Hills, Balwyn. 6-12km from CBD. Top schools (Scotch, MLC, Camberwell Grammar). Period homes, leafy streets.
Inner South
Caulfield, Elwood, St Kilda East, Carnegie, Malvern East. 8-12km from CBD. Near beaches, good schools, tram access. Strong café culture.
Bayside
Beaumaris, Black Rock, Sandringham, Hampton. 15-20km from CBD. Beach access, sailing clubs, good schools. Family-oriented, safe streets.
Inner North
Brunswick, Fitzroy North, Carlton North, Abbotsford. 4-8km from CBD. Period terraces, gentrified, trendy cafes. Excellent tram access.
Melbourne's blue-chip suburbs. Prestige addresses, top schools, heritage homes. Excellent capital growth. High-income buyers and downsizers.
Bayside Premium
Brighton, Middle Brighton, Brighton East. 12-15km from CBD. Melbourne's most prestigious Bayside suburb. Top schools, beaches, grand homes.
Inner East Elite
Toorak, Armadale, Malvern, Canterbury. 5-8km from CBD. Melbourne's most expensive suburbs. Period mansions, elite schools, tree-lined streets.
Inner City Premium
South Yarra, Prahran, St Kilda (select streets). 3-6km from CBD. Luxury apartments, penthouse living, Chapel St precinct. High rental yields.
Peninsula & Lifestyle
Mornington, Mount Martha, Portsea, Sorrento. 60-90km from CBD. Peninsula lifestyle, beaches, wineries. Holiday homes and sea-changers.
Common questions about getting a home loan in Melbourne
The median house price in Melbourne is approximately $850,000 (as of 2025). However, this varies significantly by location. Western suburbs and growth corridors start around $600K, middle-ring suburbs range $700K-$1.2M, and premium inner suburbs and Bayside areas exceed $1.5M+. Units are generally $200K-$300K cheaper than houses in the same suburb.
You need a minimum 5% deposit, but this requires Lenders Mortgage Insurance (LMI) which can add $15K-$40K to your costs. A 10% deposit also requires LMI. A 20% deposit avoids LMI entirely and gives you better rates. First home buyers can access the First Home Guarantee scheme with just 5% deposit and no LMI, subject to price caps ($950,000 in Melbourne for 2025).
First home buyers in Victoria receive stamp duty exemptions for properties up to $600,000 (you pay $0 stamp duty). For properties $600K-$750K, there's a concessional rate. You also get the $10,000 First Home Owner Grant for new builds or substantially renovated properties valued up to $750,000. These concessions can save you $30K-$40K on an $800K property.
Historically, inner suburbs like Hawthorn, Kew, Brighton, and Toorak have delivered strong capital growth (8-10% annually). However, outer growth corridors like Werribee, Point Cook, Cranbourne, and Melton are currently showing strong growth (10-15% in recent years) due to infrastructure investment and affordability. Middle-ring suburbs undergoing gentrification (Preston, Coburg, Footscray, Yarraville) also offer good growth potential at lower entry prices.
Inner suburbs ($1M-$2M+) offer proximity to CBD, excellent schools, heritage homes, and strong long-term capital growth. However, they require higher incomes and deposits. Outer suburbs ($500K-$700K) provide affordable entry, modern homes, and strong recent growth, but have longer commutes and fewer established amenities. Your choice depends on your budget, lifestyle priorities, and whether you're investing or owner-occupying. Many buyers start outer, then upgrade to middle or inner suburbs later.
As of 2025, owner-occupier variable rates range from 5.8%-6.5% depending on LVR and loan features. Fixed rates (1-5 years) range from 5.9%-6.3%. Investor rates are typically 0.3%-0.5% higher. Rates also depend on your deposit size (higher deposit = better rate), loan amount, and lender. Professional packages (doctors, lawyers, accountants) can receive discounted rates around 5.8%-6.0% with offset accounts and no fees.
Yes, you can buy an investment property first, but you'll generally need a 20% deposit (higher than first home buyers who can access 5-10% deposit schemes). You won't receive first home buyer stamp duty concessions or grants. However, investment properties offer tax deductions (interest, management fees, depreciation), and rental income helps with loan serviceability. Many people buy affordable investment properties in high-rental-yield suburbs (Clayton, Footscray, Frankston) while continuing to rent where they want to live.
Pre-approval typically takes 1-3 business days with complete documentation. You'll need recent payslips (2-3 months), tax returns (if self-employed), bank statements (3 months), ID, and details of existing debts. Some lenders offer conditional approval within 24 hours. Pre-approval is valid for 90 days (some lenders offer 6 months) and shows sellers you're a serious buyer. In Melbourne's competitive market, pre-approval is essential before attending auctions or making offers.
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