The Easiest Way to Buy Your First Home in Victoria

Buying your first home in Victoria means you can access a $10,000 grant on new builds and full stamp duty exemption on properties up to $600,000.

The decision you're making right now is whether to proceed with a purchase, and if so, what type of property will give you the strongest financial start. The Victorian market offers genuine support for first home buyers, but the concessions work differently depending on whether you're buying new or established, and your deposit size will determine which loan structures are available to you.

How the Victorian First Home Owner Grant Works

The First Home Owner Grant in Victoria pays $10,000 for new homes valued up to $750,000. The grant does not apply to established homes. A new home includes a property purchased off-the-plan, a house and land package, or a substantially renovated dwelling that has never been occupied. If you're buying a townhouse in a new development or signing a contract for a house and land package, you qualify. If you're buying a house built in the 1990s, you don't.

Consider a buyer purchasing a house and land package valued at $680,000. The $10,000 grant can be paid directly to the lender at settlement, reducing the amount you need to borrow. Most lenders allow the grant to form part of your deposit, which means a buyer with $40,000 in savings could effectively have $50,000 toward the purchase once the grant is applied. The grant is managed by the State Revenue Office, and your conveyancer will lodge the application on your behalf before settlement.

Stamp Duty Concessions for Victorian First Home Buyers

Victoria offers a full stamp duty exemption on properties up to $600,000 and a sliding scale concession on properties between $600,001 and $750,000. The concession applies to both new and established homes, provided the property will be your principal place of residence. On a property valued at $600,000, the exemption saves approximately $31,000 in transfer duty. On a property valued at $700,000, the concession reduces duty to around $8,000 instead of the full $38,000.

The calculation is handled by your conveyancer at settlement. You don't apply separately. Eligibility requires that you or your partner have not previously owned property in Australia, that you're an Australian citizen or permanent resident, and that you'll occupy the home for at least 12 continuous months starting within 12 months of settlement.

Off-the-Plan Purchases and the Land Value Concession

If you're buying off-the-plan in Victoria under a strata or community title arrangement, duty is calculated on the land value at the date you sign the contract, not on the completed property value. The concession applies to contracts signed on or before 31 October 2026 for properties not yet titled or substantially completed. This can produce a significant reduction in duty payable, particularly in developments where land represents a smaller portion of total value.

In a scenario where a buyer signs a contract for an apartment valued at $550,000 in a new development, and the land component at contract date is assessed at $180,000, duty is calculated on $180,000 rather than $550,000. Combined with the first home buyer exemption, the buyer may pay no duty at all. The concession is not permanent and ends after October 2026, so timing matters if you're considering a new apartment or townhouse.

Using the Australian Government 5% Deposit Scheme in Victoria

The 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. In Melbourne, the property price cap is $950,000. In regional Victoria, the same cap applies. The scheme is administered through participating lenders, and places are uncapped. You apply through your broker or lender, not directly through Housing Australia.

A buyer purchasing at $700,000 would need a $35,000 deposit under the scheme. Without the scheme, the same buyer would typically need a 10% deposit or face LMI costs of several thousand dollars on a loan above 90% of the property value. The scheme can be combined with the Victorian stamp duty concession and the FHOG if you're buying new. It cannot be combined with Help to Buy.

Fixed or Variable: Choosing Your Home Loan Structure

Most first home buyers choose between a variable rate with an offset account or a fixed rate for budget certainty. A variable rate with offset allows you to park savings in a linked account and reduce interest charged on your loan balance without losing access to those funds. A fixed rate locks your repayment amount for a set period, typically one to five years, but limits access to offset and may carry break costs if you repay early.

In our experience, buyers who expect to build savings over the first few years of ownership benefit more from offset flexibility. Buyers with irregular income or limited cash reserves after settlement tend to value the certainty of a fixed rate. Some lenders offer split structures, where part of your loan is fixed and part remains variable. The choice depends on your cash flow, risk tolerance, and whether you're likely to make lump sum repayments.

Getting Pre-Approval Before You Buy

Conditional pre-approval confirms how much a lender is willing to lend based on your income, expenses, and deposit. It's not a guarantee, but it gives you confidence to make an offer and shows vendors and agents that you're a genuine buyer. Pre-approval is valid for 90 days in most cases, and you'll need to provide payslips, bank statements, and identification before the lender issues a letter.

If you're planning to use your super savings under the First Home Super Saver Scheme, you'll need a determination from the ATO before settlement. That process can take several weeks, so start early. Your broker can coordinate timing so that funds are released in time to form part of your deposit at settlement.

Buying your first home in Victoria is more achievable than many buyers expect once the concessions are applied and the right loan structure is in place. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions