Buying your first house in Victoria means you can access some of the most generous support available to first home buyers anywhere in Australia.
Victoria offers stamp duty relief up to $750,000 and a $10,000 grant for new homes, plus you can combine these with federal schemes that let you buy with just a 5% deposit without paying Lenders Mortgage Insurance. When you know how to stack these correctly, the amount you need upfront drops significantly.
What You Can Claim as a First Home Buyer in Victoria
Victoria provides two main forms of support: stamp duty concessions and the First Home Owner Grant. You pay no stamp duty on properties up to $600,000, and a reduced amount on homes between $600,000 and $750,000. The first home owner grant of $10,000 applies to new homes valued up to $750,000, including house and land packages.
Consider a buyer purchasing a newly built house in Melton for $650,000. They receive the full $10,000 grant and pay no stamp duty, saving around $34,000 in total compared to someone who doesn't qualify. That saving covers most of their settlement costs and leaves room to furnish the property.
You can also use the federal First Home Super Saver Scheme to withdraw up to $50,000 from your superannuation for your deposit, taxed at a lower rate than your income. Stacking that with Victoria's concessions means your genuine savings requirement can be much lower than you might expect.
How Much Deposit You Actually Need
Most lenders require between 5% and 20% of the purchase price as a deposit, but the 5% deposit scheme removes the need for Lenders Mortgage Insurance if you qualify. That means you can buy with a smaller deposit and avoid the insurance premium that would otherwise add thousands to your upfront costs.
A buyer purchasing an established home in Geelong at the suburb's current median would typically need a 10% deposit plus settlement costs. If they qualify for the First Home Guarantee, they can reduce that deposit to 5% and redirect the saved funds toward furniture, moving costs, or keeping a buffer in their offset account.
The First Home Guarantee was expanded in late 2025 and no longer has income caps, which means many more buyers now qualify. You still need to meet the lender's serviceability requirements, but the scheme itself won't exclude you based on how much you earn.
Fixed or Variable: What Works for First Home Buyers
Your first home loan decision involves choosing between a fixed rate, a variable rate, or a split. A fixed rate locks in your repayments for a set period, usually between one and five years. A variable rate moves with the market and typically comes with an offset account, which lets you park savings against the loan and reduce the interest you pay.
In our experience, buyers who want certainty in their budget tend to favour a fixed rate for at least part of their loan. Buyers who expect irregular income, such as bonuses or commissions, often prefer a variable rate with an offset account so they can deposit extra funds and withdraw them if needed.
Splitting your loan between fixed and variable gives you some stability while keeping access to features like offset and redraw. A buyer borrowing $550,000 might fix $350,000 for three years and leave $200,000 on a variable rate with offset. They know their minimum repayment, but they can still reduce interest by depositing spare cash into the offset.
Applying for Pre-Approval Before You Buy
Getting pre-approval before you start attending inspections tells you what you can borrow and shows sellers you're ready to move. Pre-approval is conditional, meaning the lender has assessed your income, expenses, and deposit, but they'll still need to value the property and review your final documents before settlement.
Pre-approval usually lasts between three and six months, depending on the lender. If your circumstances change during that period, such as a job change or new debt, you need to update your broker or lender immediately. A buyer who gets pre-approved in March and then finances a car in April may no longer qualify for the same loan amount.
New Home or Established: How It Affects Your Grants
The $10,000 Victorian grant only applies to new homes, which includes newly built houses, house and land packages, and homes that have never been occupied. If you're buying an established home, you won't receive the grant, but you still benefit from stamp duty concessions up to $750,000.
A buyer purchasing a house and land package in Clyde can claim the grant and pay no stamp duty if the total value is under $600,000, or reduced duty up to $750,000. A buyer purchasing an established home in the same suburb at the same price misses the grant but still saves significantly on stamp duty.
New builds often take several months to complete, so your deposit sits in a trust account until settlement. That means you can keep saving during construction and potentially increase your deposit or set aside more for costs after you move in.
What Happens on Settlement Day
Settlement is when ownership transfers from the seller to you, and your lender releases the funds to complete the purchase. Your conveyancer coordinates the process, and you'll usually receive the keys on settlement day or shortly after. You need to have building and contents insurance in place before settlement, as you're responsible for the property from that point.
Your first home loan repayment is usually due around a month after settlement. If you've set up an offset account, any funds sitting in that account from day one will reduce the interest charged on your first statement. A buyer who settles with $8,000 in their offset will pay less interest in that first month than someone who starts with a zero balance.
You'll also need to budget for council rates, water rates, and any strata fees if you're buying a townhouse or unit. These are ongoing costs that sit on top of your loan repayment, so factor them into your household budget from the start.
Buying your first house in Victoria is more affordable than it looks once you understand how to combine state and federal support. Whether you're looking at a new build in the growth corridors or an established home closer to Melbourne, the right structure and the right timing can save you tens of thousands in upfront costs. Call one of our team or book an appointment at a time that works for you, and we'll show you exactly what you qualify for and how to structure your application to make the most of every concession available.
Frequently Asked Questions
What grants can I claim when buying my first house in Victoria?
You can claim a $10,000 First Home Owner Grant for new homes valued up to $750,000, and you'll pay no stamp duty on properties up to $600,000 or reduced duty up to $750,000. You can also access the federal First Home Guarantee to buy with a 5% deposit without paying Lenders Mortgage Insurance.
Do I need a 20% deposit to buy my first house in Victoria?
No, you can buy with as little as 5% using the First Home Guarantee, which removes the need for Lenders Mortgage Insurance. Most lenders will accept deposits between 5% and 20%, depending on whether you qualify for the scheme and meet their lending criteria.
Can I use my super to help buy my first house?
Yes, the First Home Super Saver Scheme lets you withdraw up to $50,000 from your superannuation to use as part of your deposit. You can contribute up to $15,000 per financial year, and it's taxed at a lower rate than your income when you withdraw it.
What's the difference between buying a new home and an established home in Victoria?
If you buy a new home, you can claim the $10,000 First Home Owner Grant, but established homes aren't eligible for the grant. Both new and established homes qualify for stamp duty concessions if you meet the eligibility criteria and the property is under the relevant threshold.
Should I get pre-approval before I start looking at houses?
Yes, pre-approval tells you what you can borrow and shows sellers you're ready to buy. It's conditional and usually lasts three to six months, so you should apply once you're actively looking and have your deposit ready.
