Unlocking First Home Buyer Support in Victoria (VIC)
If you’re a first home buyer in Victoria, there are some generous government incentives that can help reduce your upfront costs or get into the market sooner. But just because support is available doesn’t mean it’s automatically the right move for your long-term goals.
In this guide, we’ll break down what’s on offer as of October 2025, how the rules work, and where a strategic lens really matters. That includes:
Stamp duty exemptions and concessions
The $10,000 First Home Owner Grant
The First Home Guarantee Scheme (including key updates from October 2025)
This resource supports Episode 16 of the First Home Unlocked Podcast, where Jack walks through each scheme and how it fits into your overall strategy.
Stamp Duty Concessions for First Home Buyers in VIC
Stamp duty (or land transfer duty) is often one of the biggest costs when buying a home. In Victoria, eligible first home buyers can access full or partial exemptions, depending on the property price.
What You Can Save
$600,000 or less → No stamp duty
$600,001 to $750,000 → Discounted rate
$750,000+ → Full stamp duty applies
This can save you up to $31,070 compared to what other buyers would pay on a $600K home. That’s a huge boost, but it’s important to understand how it works and where the cut-offs are.
Eligibility Rules
To qualify for VIC’s first home buyer stamp duty concessions:
You must be at least 18 years old
You or your partner must not have owned property in Australia before
You must live in the home as your principal place of residence for at least 12 months
The property must be valued at $750,000 or less
You must be an Australian citizen or permanent resident
If buying vacant land, you must move in:
Within 12 months of the occupancy certificate, or
No later than 36 months from settlement, whichever comes first.
Note: If your home is valued even $1 over $750,000, you pay full stamp duty.
You can use the Transfer Duty Calculator to estimate what you’ll pay.
Strategy Insight
It’s common to see buyers cap their search at $600K to avoid stamp duty entirely, but that’s not always the smartest move.
If you have the capacity to stretch your borrowing power slightly, paying a bit of stamp duty might unlock a higher-quality home in a better location that better suits your lifestyle and long-term goals.
Let’s look at some real examples:
$600,000: You pay no stamp duty as a first home buyer (compared to $31,000 for non-FHBs)
$650,000: You pay a reduced stamp duty of around $11,000 (vs $34,000 for others)
$700,000: You still get a reduced rate — around $25,000 (vs $37,000 for others)
$750,000: You hit the cap so you pay full stamp duty, which is around $40,000
If a better home is just above the $600K threshold, it might be worth paying a bit of duty if it means avoiding an upgrade in a few years or buying something that grows in value.
We can help you assess the trade-offs based on your full situation, borrowing capacity, deposit, lifestyle plans, and longer-term wealth-building goals.
You can find all the details and eligibility information on the First Home Buyer Duty Exemption or Concession here
VIC First Home Owner Grant (FHOG)
Let’s move on to the next major support available for first home buyers in Victoria, the First Home Owner Grant (FHOG). If you're buying or building a brand-new home, this grant can help boost your deposit and get you into the market sooner.
What Is It?
The FHOG is a $10,000 tax-free payment from the Victorian Government to support eligible first home buyers purchasing or building a new home valued up to $750,000. It applies to:
House and land packages
Off-the-plan apartments or townhouses
Brand new homes, units, or apartments that have never been lived in
New builds on land you already own
The home can be any type of residential property, as long as it’s newly built and you plan to live in it as your main home.
It’s important to note: the grant does not apply to established homes that have already been occupied.
Eligibility
To qualify for the $10,000 FHOG in Victoria, you must:
Be buying or building a new home valued at $750,000 or less (including land and contract variations)
Be 18 years or older at settlement or completion
Ensure all people who will be on the property title are included in the application
Include your spouse or partner’s details even if they won’t be on the title (their circumstances still affect eligibility)
Have never owned property or received a FHOG in Australia
At least one applicant must be an Australian citizen or permanent resident at the relevant date:
For purchases: settlement date
For builds: the date the home is ready for occupancy
At least one applicant must move in within 12 months and live in the property as their principal place of residence for 12 continuous months
Australian Defence Force members may be exempt from the residency requirement.
Extra Info to Keep in Mind
You can apply through your broker as part of your loan process, or directly via the State Revenue Office (SRO)
The FHOG can be used alongside Victoria’s stamp duty concessions, if you’re eligible for both
It can also be combined with the First Home Guarantee Scheme (5% deposit, no LMI) to stretch your deposit further
Strategy Tip
$10,000 can absolutely help with your upfront costs — but it shouldn’t be the only factor driving your decision.
Before chasing the grant, ask yourself:
Is this the right long-term home for your lifestyle?
Is it in a location with strong growth potential?
Are you buying quality, or just ticking boxes to access an incentive?
Could an established home, even without the grant, offer better value over time?
Government incentives are designed to stimulate building — not necessarily to lead you to the best possible home.
If you’re unsure how to weigh up new vs established homes, check out Episode 6 – Unlocking Asset Quality. It’ll help you think through land value, location, and long-term potential.
You can find all the official information about the Victorian FHOG here
First Home Guarantee (FHGS)
The First Home Guarantee Scheme (FHGS) is one of the most powerful supports available to help first home buyers purchase with a smaller deposit and no Lenders Mortgage Insurance (LMI), all while keeping full ownership of your home.
This is a federal government scheme run by Housing Australia. It allows you to buy with as little as a 5% deposit, and the government acts as guarantor for the remaining 15% of the 20% typically required by lenders.
That means:
You don’t pay LMI (which can often cost tens of thousands of dollars)
You still access competitive interest rates
You keep 100% of the equity and future growth
We break this down in full in Episode 10 of the podcast, including how the scheme works, the pros and cons, and how to eventually remove the guarantee once your equity grows. It’s a must-listen if you’re considering using this option.
VIC Price Caps (2025–26)
To use the FHGS, the property you purchase must be under the price cap for your area. These caps are based on whether you're buying in a capital city, regional centre, or other area and they have increase significantly in VIC from October 1st 2025.
Here’s what applies in Victoria:
Melbourne and Geelong:
$950,000
Rest of Victoria:
$700,000
These increases mean more homes will qualify, especially in areas where the old caps were restrictive.
Strategy Tip
This scheme is one of the most effective ways to get into the market sooner — especially with the rising cost of homes and living in Victoria.
It allows you to:
Avoid Lenders Mortgage Insurance (LMI), potentially saving $10K–$30K+
Buy with just a 5% deposit instead of needing 20%
Own 100% of your home and all future equity and growth
And with price caps rising from October 2025, plus the removal of income caps, it’s becoming more accessible than ever — particularly in areas like Melbourne and regional centres where affordability has been a barrier.
But as always, don’t just focus on getting in fast. Make sure:
The property fits your long-term lifestyle and goals
It offers strong asset quality and location fundamentals
You're clear on your repayments, buffers, and exit strategy
If you’re not sure how to weigh all this up, we can help you assess your options and figure out if the FHGS is the right fit for your plan.
Final Thoughts: Don’t Just Chase the Incentives
Government grants and concessions in Victoria can go a long way in reducing your upfront costs — but they’re not a shortcut to long-term success.
The best results come from having a clear plan, buying a quality home, and choosing the right structure for your unique situation.
That’s where we come in.
We’ll help you compare all your options
Find the right lender and loan structure for your goals
And make sure you’re using what Victoria offers, without compromising future flexibility or growth
Listen to Episode 16 for the full breakdown or Book a Get to Know You Chat to map out your plan with confidence.
