In this article, we aim to provide comprehensive information to prospective first home buyers in Victoria, assisting them in navigating the various grants, concessions, and schemes offered by both Federal and State governments to facilitate entry into the property market.

At the end of each section, we will provide you with a direct link to the relevant government’s website, enabling you to self-assess your eligibility for each scheme.

1. Stamp Duty Exemptions and Concessions:

• One of the significant hurdles for first home buyers is the substantial stamp duty cost associated with property purchases. However, in Victoria, relief is at hand. If your first home’s contract purchase price falls under $600,000, you may be exempt from paying stamp duty entirely. Additionally, properties priced between $600,001 and $750,000 may be eligible for a concession on a sliding scale .
• Importantly, these stamp duty savings apply whether you’re purchasing an established home or a new dwelling. Moreover, if you’re buying an empty block of land to build upon, the dutiable amount typically pertains to the land price only. Therefore, even if your combined land and build costs exceed the threshold, you may still qualify for the stamp duty concession.
• For more information, visit the State Revenue Office Victoria Website.

2. First Home Buyer Grant:

• Eligible first home buyers in Victoria can access a grant of up to $10,000 only when purchasing a brand-new or newly constructed dwelling to serve as their primary residence.
• This grant is applicable to various property types, including apartments, townhouses, standalone houses, building on an empty block of land, provided the contract price (building contract value only for house & land purchase) doesn’t exceed $750,000.
• For detailed eligibility criteria and application procedures, refer to the State Revenue Office Victoria Website.

3. Low Deposit Options:

• Recognising the challenge of saving for a significant deposit towards home ownership, both the Federal and Victorian Governments have quite recently offered schemes to facilitate home purchases with minimal deposits.
• The First Home Buyers Guarantee (FHBG) by the Federal government allows eligible buyers to borrow up to 95% without the burden of paying for the significant Lender’s Mortgage Insurance (LMI), typically incurred for loans exceeding an 80% Loan-to-Value Ratio. LMI is usually added to the total loan amount, and could cost up to 3% of the purchase price.
• Alternatively, the Victorian Homebuyer Fund (VHF) by the state government enables co-purchasing of your first home with the government, where they provide up to 25% equity share in the property , allowing for a minimal deposit from the buyer. This shared equity scheme allows for a deposit as low as 5%, with the remaining 70% borrowed from a participating lender selected by the government for this scheme.
• While the FHBG offers a one-off government commitment, granting you full ownership from the outset, the VHF requires annual reviews and potential forced buybacks/repayments of the government’s share when your financial situation changes. Please note that the repayments may include capital gains as your property value may increase over time.
• It is important for you as the prospective buyers to weigh the options and choose the scheme that best aligns with your financial goals and circumstances.
• For more information visit these websites:
  • For FHBG: Housing Australia Website
  • For VHF: SRO Victoria Home Buyer Fund 

At Navanti Finance, we have helped many first home buyers to also fully understand the landscape of government help available to them early during the budgeting stage, so that they can confidently take the first steps towards their property ownership journey. Especially with the low deposit scheme options, determining which lenders are participating for each program is crucial in selecting the loan products that best suit your situation.

With the right guidance and understanding of the differences in the available schemes, government support can truly open doors for first-time buyers in securing their first home sooner.