Home Loans in Victoria (VIC) - Compare Rates from 30+ Lenders

In Victoria, the average variable home loan interest rate for owner-occupiers paying principal and interest is approximately 6.55% as of May 2026. The lowest variable rates available to Victorian borrowers start from 5.69% p.a. (5.71% comparison rate) from online lenders. Fixed rates start from 5.84% p.a. (6.08% comparison rate). These rates assume an 80% loan-to-value ratio on a standard owner-occupier loan. Rates may vary depending on the loan amount, LVR, and whether the property is in Melbourne metro or regional Victoria.

In Victoria, the best home loan rates as of 2026 come from a mix of online and traditional lenders. Unloan (backed by CommBank) offers a competitive variable rate with offset and redraw. Athena offers a competitive rate with automatic rate matching. Among the major banks, ING leads, followed by Macquarie and CommBank. For fixed rates, Unloan leads on 3-year fixed. All major banks and most non-bank lenders operate across all Victorian postcodes, including Melbourne, Geelong, Ballarat, Bendigo, and regional areas.

Your borrowing capacity in Victoria depends on your income, expenses, existing debts, and the property you are purchasing. APRA requires lenders to assess repayment capacity at the loan rate plus a 3% buffer. On a household income of $150,000, a typical borrower can borrow approximately $680,000 after the buffer is applied. APRA's DTI limits from February 2026 cap high-DTI lending, meaning borrowers with a debt-to-income ratio above 6x face stricter scrutiny. Given Melbourne's median house price of $930,000, a dual-income household typically needs combined income of $170,000+ to borrow enough for a median-priced Melbourne home with a 20% deposit.

To purchase a home in Melbourne at the median house price of approximately $930,000, you would ideally need a 20% deposit of $186,000 to avoid paying Lenders Mortgage Insurance (LMI). The minimum deposit most lenders accept is 5%, which is $46,500 for a $930,000 property, but LMI will add $15,000-$35,000 to your costs. First home buyers in Victoria can access the First Home Guarantee scheme with just a 5% deposit and no LMI, or the Help to Buy shared equity scheme with a 2% deposit. Regional Victoria properties with a median of approximately $480,000 require a 20% deposit of $96,000.

First home buyers in Victoria can access several government grants and schemes. The Victorian First Home Owner Grant (FHOG) provides $10,000 for new homes valued up to $750,000. First home buyers are exempt from stamp duty on properties up to $600,000 and receive a concession on properties between $600,000 and $750,000. The federal First Home Guarantee allows 5% deposits without LMI (35,000 places nationally in 2026). The Help to Buy shared equity scheme requires just a 2% deposit. Victoria also offers the Victorian Homebuyer Fund, a shared equity scheme where the government contributes up to 25% of the purchase price (or 35% for Aboriginal and Torres Strait Islander buyers).

Stamp duty on a $900,000 property in Victoria is approximately $49,070 for a standard purchaser, calculated under the sliding scale rates. First home buyers in Victoria are fully exempt from stamp duty on properties valued up to $600,000 and receive a concessional rate on properties between $600,000 and $750,000. Victoria is the only Australian state transitioning to an annual property tax model - properties purchased from 1 July 2024 by commercial and industrial buyers may pay annual land tax instead of upfront stamp duty. For residential first home buyers, the traditional stamp duty exemptions still apply.

The Victorian Homebuyer Fund is a shared equity scheme where the Victorian Government contributes up to 25% of the purchase price of an existing or new home, reducing the mortgage amount and monthly repayments. For Aboriginal and Torres Strait Islander buyers, the government contribution is up to 35%. Eligibility requires a minimum 5% deposit (or 3.5% for Aboriginal buyers), annual income below $130,000 (single) or $200,000 (couple), and the property must be the buyer's principal place of residence. The price cap varies by location - up to $950,000 in Melbourne metro and $600,000-$800,000 in regional areas.

Victoria is the only Australian state actively transitioning toward an annual property tax model to replace stamp duty. From 1 July 2024, commercial and industrial property buyers can opt to pay an annual land tax instead of upfront stamp duty. For residential properties, the traditional stamp duty system still applies, although the Victorian Government has signalled its intention to expand the annual tax model to residential purchases in future. This transition could benefit buyers who plan to hold property for shorter periods, as the annual tax may be lower than the lump-sum stamp duty over the first 10-15 years of ownership.

Beyond the purchase price and stamp duty, buying a home in Victoria involves several additional costs. Conveyancing or legal fees typically run $1,200-$2,500. Building and pest inspections cost $400-$700. Loan application fees range from $0-$600. Lenders Mortgage Insurance (LMI) applies if your deposit is below 20% and can cost $8,000-$35,000 on a Melbourne property. Title registration with Land Use Victoria is approximately $120-$150. Section 32 (vendor's statement) review is included in conveyancing. Council and water rates are adjusted at settlement. Moving costs average $400-$1,500 depending on distance. Budget an additional 3-5% of the purchase price for these costs.

The median house price in Melbourne is approximately $930,000 as of early 2026, according to CoreLogic data. Melbourne is Australia's second most expensive capital city market after Sydney. The median unit price in Melbourne is approximately $620,000. Across broader metropolitan Melbourne, prices range significantly by suburb - from $500,000-$650,000 in outer western suburbs like Melton and Wyndham to over $2 million in inner-east suburbs like Toorak, Hawthorn, and Malvern. Melbourne property values grew approximately 1.5% over the 12 months to May 2026, underperforming most other capitals due to higher supply levels.

Yes, most major banks and online lenders approve home loans for regional Victoria properties. All four major banks (CommBank, Westpac, ANZ, NAB) lend across regional Victoria including Geelong, Ballarat, Bendigo, the Mornington Peninsula, Gippsland, and the Surf Coast. Some lenders may apply postcode restrictions for very remote areas or properties on large acreage. Regional Victoria median property prices sit around $480,000, making these areas significantly more accessible than Melbourne. The Regional First Home Buyer Guarantee provides additional support with 10,000 places reserved for regional buyers across Australia.