Before bidding at a Melbourne auction, confirm your borrowing limit, the conditions of any loan approval, your available deposit and the property checks still required by your lender. Have your conveyancer review the contract before auction day. A borrowing estimate is a starting point for a discussion, not a promise that a particular purchase will be funded.
This checklist is for buyers preparing to purchase in Melbourne, including Kew, Hawthorn, Mont Albert and Balwyn. It focuses on the conversation to have before bidding, rather than a general home-loan application guide.
What should you check before auction day?
Consumer Affairs Victoria explains that there is no cooling-off period for an auction purchase. You cannot add a finance condition afterwards unless the seller agrees. The deposit and settlement obligations therefore deserve attention before you bid. Read the official Victorian auction guidance and obtain advice on your particular contract.
Your pre-auction finance checklist
- Set two limits. Write down the maximum purchase price your finance arrangements can support and the lower amount, if applicable, that feels comfortable for your household budget. Decide your bidding limit before the auction starts.
- Read the approval conditions. Ask your broker what has been assessed, what remains outstanding and whether the approval needs refreshing. Keep the written response with your buying documents.
- Discuss the actual property. Share the listing, contract and proposed settlement date early. Ask whether the property type or a lender valuation could change the amount available.
- Separate the auction deposit from your overall contribution. Confirm the amount required under the contract, when it must be paid and the accepted payment method. Ask your bank about transfer limits ahead of time.
- Allow for purchase costs. Build a separate budget for duty where applicable, conveyancing, inspections, lender costs, moving and a cash reserve. Do not spend the full cash balance on bidding.
- Agree on a stop point. If a finance question remains unresolved, discuss the risk with your broker and conveyancer before deciding whether to participate.
A simple worksheet to take to your broker
Use one page with these five headings: intended purchase price; available cash; estimated purchase costs; requested loan; and cash remaining after settlement. Leave unknown amounts blank and assign each an owner to confirm. This helps expose a missing cost before it becomes an urgent settlement problem.
Illustrative example: a buyer has set aside money for both the purchase contribution and moving costs. If bidding rises by $20,000, the useful question is not just whether repayments rise. It is also whether the extra price changes the cash contribution, duty estimate or lender assessment. Ask for a revised calculation instead of assuming the original budget still works.
Questions Melbourne buyers often ask
Does pre-approval mean I can bid without further checks?
Ask your lender or broker to explain the exact status and conditions in writing. Your decision should take account of the specific property and contract, not just the word “approved” in a conversation.
Who checks the contract?
Use a conveyancer or solicitor for legal advice. Your mortgage broker can discuss finance requirements and coordinate the loan process, but the legal review is a separate task.
What if I am buying my first home?
Ask for a budget that separates your deposit, purchase costs and any assistance you may qualify for. Explore our first-home buyer service before your auction deadline.
Plan your next step before you bid
Contact Absolut Financial to discuss your auction finance. Tell us your target suburb, approximate budget and auction date so the conversation can focus on the checks you still need. If you are moving home, see our buying your next home service.
Information checked 29 September 2026. General information only; it does not take account of your circumstances. Lending is subject to the lender’s assessment and conditions. Obtain legal advice about the contract before committing.