The easiest way to enter the Victorian property market

Getting into the Victorian property market as a first home buyer is more achievable than many people think.

With the right combination of state concessions and federal support, you can reduce your upfront costs significantly and move from renting to owning sooner than you expected. The challenge is not whether help exists, it is knowing which programs you qualify for and how to stack them properly.

Victoria's Stamp Duty Concession and How It Works

Victoria offers a full stamp duty exemption on properties valued up to $600,000, and a partial concession on homes valued between $600,000 and $750,000 for eligible first home buyers.

Consider a buyer purchasing an established property valued at $580,000. Without the concession, stamp duty would be around $30,000. With the first home buyer concession, that cost drops to zero. That is $30,000 saved before settlement, which can be redirected toward furnishing, moving costs, or kept as an emergency buffer.

The concession applies to both established homes and new builds, though if you are buying new, you may also qualify for the First Home Owner Grant of $10,000 on properties up to $750,000. The two can be combined, but the grant applies to new homes only, while the stamp duty concession covers both.

Combining the First Home Guarantee with Victorian Concessions

The First Home Guarantee lets eligible buyers purchase with just a 5% deposit without paying Lenders Mortgage Insurance.

This is a federal scheme, and it stacks with Victoria's stamp duty concession. If you are buying at $650,000 and have a 5% deposit saved, you are looking at roughly $32,500 upfront plus settlement costs. With the partial stamp duty concession at that price point, you would pay a reduced amount rather than the full $35,000 or so in duty. The First Home Guarantee covers the LMI component, which would otherwise add another $15,000 to $20,000 to your costs.

In our experience, buyers who use both schemes together can enter the market 12 to 18 months earlier than they would saving for a 20% deposit on their own. The key is understanding that these programs are designed to work together, not in isolation.

How the First Home Super Saver Scheme Adds to Your Deposit

The First Home Super Saver Scheme allows you to save for a deposit inside your superannuation fund, where contributions are taxed at 15% instead of your marginal rate.

You can contribute up to $15,000 per financial year and withdraw a total of up to $50,000 to put toward your deposit. If you are on a marginal tax rate of 32.5%, the tax saving on a $15,000 contribution is around $2,600 per year. Over three years, that adds roughly $7,800 to your deposit compared to saving in a standard bank account.

This scheme works well alongside the First Home Guarantee because the funds you withdraw can form part of your 5% deposit. It requires some forward planning, but if you are 12 to 24 months away from buying, it is worth considering.

Shared Equity and When It Makes Sense

The Victorian Homebuyer Fund is a shared equity scheme where the state government contributes up to 25% of the purchase price in exchange for an equivalent share of the property.

This program is income tested, with caps of $125,000 for individuals and $200,000 for couples. If you qualify, the government's contribution reduces the amount you need to borrow, which can lower your repayments and make borrowing more affordable if your income sits near the threshold.

In a scenario where a buyer purchases a property at $600,000 and the government contributes 25%, that is $150,000. The buyer only needs to borrow $450,000, reducing monthly repayments and improving serviceability. The trade-off is that you share any capital growth with the government, and you will need to buy them out or sell when you eventually move or refinance.

Shared equity is not for everyone, but it can be particularly useful for single income buyers or those with strong job security but limited savings.

Regional Victoria and the Regional First Home Buyer Guarantee

If you are open to buying outside metropolitan Melbourne, the Regional First Home Buyer Guarantee offers another pathway.

This scheme works similarly to the standard First Home Guarantee, but applies to regional areas and may have different property price caps depending on the location. Regional Victoria includes areas like Geelong, Ballarat, Bendigo, and the Mornington Peninsula, many of which still offer strong employment options and lifestyle appeal.

Buyers in regional areas can still access Victoria's stamp duty concession and the $10,000 grant on new homes, giving you the same state support with potentially lower entry prices than inner Melbourne.

Getting Your Home Loan Application Right

Once you have worked out which concessions and schemes apply, the next step is pre-approval.

Pre-approval gives you a clear budget and shows sellers you are a genuine buyer. Lenders will assess your income, expenses, and credit history to determine how much they are willing to lend. If you are using the First Home Guarantee, your broker will need to confirm your eligibility and ensure the lender is an approved participant in the scheme.

In our experience, buyers who get pre-approval before they start inspecting properties are more confident when they find the right home. You know exactly what you can afford, and you are not guessing or hoping the numbers work out after you have fallen in love with a place.

Make sure your application reflects your genuine financial position. Lenders will review bank statements, payslips, and existing debts. If you have a car loan or credit card, factor those repayments into your serviceability before you apply.

Choosing Between Fixed and Variable Rates

Your interest rate structure affects your repayments and flexibility over the life of the loan.

A fixed interest rate locks in your repayment amount for a set period, usually between one and five years. This gives you certainty, but limits your ability to make extra repayments and removes access to offset accounts during the fixed term. A variable interest rate moves with the market, which means your repayments can go up or down, but you typically have more flexibility to pay extra or redraw funds.

Many first home buyers split their loan, fixing a portion for security and leaving the rest variable for flexibility. If you are not sure which structure suits your situation, that is a conversation worth having with a broker before you lock anything in.

What Happens After You Submit Your Application

After your home loan application is submitted, the lender will conduct a formal assessment, including a valuation of the property.

The valuation confirms the property is worth what you have agreed to pay. If it comes in lower than the purchase price, you may need to renegotiate or increase your deposit. If it matches or exceeds the price, the loan moves toward unconditional approval.

Once approved, your solicitor or conveyancer will handle the legal side of settlement. You will receive a settlement date, usually four to six weeks after your offer is accepted, and on that day, the property becomes yours.

If you have used the stamp duty concession or First Home Owner Grant, those benefits are applied at settlement. Your conveyancer will lodge the relevant paperwork with the State Revenue Office to confirm your eligibility.

Your Next Loan Decision Starts Now

Getting into the property market is not about waiting until everything is perfect. It is about understanding what help is available, working out what you qualify for, and structuring your deposit and loan in a way that makes sense for your income and goals. Victoria offers some of the most supportive concessions in the country, and when you combine them with federal schemes, the upfront cost of buying your first home becomes far more manageable.

Call one of our team or book an appointment at a time that works for you. We will walk through your eligibility, confirm which programs you can access, and help you put together a home loan that gets you into your own place sooner.

Frequently Asked Questions