Saving up for a first home is one of the most challenging yet rewarding tasks life can throw at you. Thankfully, there are a number of helping hands in the form of government assistance available to bring to life your new home goals sooner rather than later.

Victoria provides a number of support schemes for first home buyers looking to enter the property market including a first home owner grant, the Victorian Homebuyer Fund and stamp duty exemptions and concessions. This article we will focus on breaking down the components of the first home owner grant in Victoria to identify how the grant works, eligibility criteria and the types of homes can be purchased with it.

How the First Home Owner Grant works in Victoria

Each state has different rules and regulations regarding first home owner grants (FHOG), with Victoria offering a grant to first home owners intending to purchase or build a new home.

The Victorian FHOG is valued to the tune of $10,000 if the contract was signed on or after 1 July 2013 and the property is valued up to $750,000.

To be eligible, the home must not have been previously sold or occupied. 

The FHOG can be used towards your deposit but given it’s only $10,000, it likely won’t be enough to cover the full deposit and you’ll have to come up with the rest out of your savings.

Don’t forget that in order to avoid paying Lenders Mortgage Insurance (LMI) you’ll typically have to come up with a 20% deposit, and lenders still want to see that you’ve genuinely saved most of the deposit.

Stamp duty

Alongside the FHOG, first home buyers in Victoria are eligible to receive a stamp duty exemption as long as the property is valued below $600,000. Properties valued between $600,001 to $750,000 are eligible to receive a stamp duty concession.

This duty exemption or concession is separate from the FHOG. The grant is a payment made to you, whereas the first home buyer duty exemption and concession is a reduction in the amount of land transfer duty you pay. 

Examples of first home buyer duty concession

Dutiable value ($)

Normal duty ($)

Duty after concession ($)

605,000

31,370

1,045

625,000

32,570

5,428

650,000

34,070

11,356

675,000

35,570

17,785

700,000

37,070

24,713

725,000

38,570

32,141

745,000

39,770

38,444

What homes can be purchased using the grant?

To take advantage of the FHOG in Victoria, your first home can be either a house, townhouse, apartment, or unit. The home must be new or less than five years old and not been previously sold or occupied.

The FHOG in Victoria is not available for those looking to buy an investment property or holiday home.

First Home Owner Grant eligibility

There are a number of eligibility conditions buyers have to meet outside the $750,000 price limit to be eligible for the FHOG in Victoria.

These include:

  • You or your spouse/partner must not have previously received a FHOG in Australia.
  • You must not have owned a home or other residential property in Australia, either jointly or separately, before 1 July 2000. However, you may still be eligible for the FHOG if you or your spouse/partner owned property on or after 1 July 2000 but did not live there as your home.
  • You must occupy the home for at least 12 months within 12 months of settling on the property (this is when the keys are handed to you) or from when the home is fully built.
  • You must be aged 18 or over and be an Australian citizen or permanent resident either by the time you settle or when the home is ready to be occupied.

If you are unsure whether you qualify for the Victoria FHOG, you can use this online tool to assess your eligibility.

Applying for the First Home Owner Grant

If you are lodging with an approved agent, each applicant and their spouse/partner must provide a copy of a primary identity document and evidence of citizenship or permanent residency. Primary identity documents if you are an Australian citizen include:

  • Australian birth certificate
  • Australian passport
  • Australian citizenship certificate.

If you are a citizen of New Zealand or another country:

  • Current passport
  • Evidence of permanent residency or permanent residence visa, including the date on which it was granted.
  • Movement record.

If you are lodging directly with State Revenue Office of Victoria, each applicant and their spouse/partner must provide a copy of a primary identity document as mentioned above, as well as one current document from each of the following categories:

Category 2

Evidence (photo and signature) of link between identity and person.

A copy of current:

  • Australian driver's licence
  • Passport
  • Working with Children Check card.
  • Firearms licence (if not used for Category 1)
  • Proof of Age card issued by the Victorian Commission for Gambling and Liquor Regulation (photo ID card).

Category 3

Evidence that each applicant and their spouse/partner reside in Australia.

A copy of current:

  • Medicare card
  • Motor vehicle registration notice
  • Centrelink or Department of Veterans’ Affairs card.

Applications must be lodged within 12 months of settlement or completion of construction of your home.

For more information about grant eligibility, visit the State Revenue Office of Victoria website.

Alternative schemes

First home buyers in Victoria can combine other state and federal schemes with the FHOG and stamp duty concessions if they wish, potentially providing tens of thousands in savings.

Victoria Homebuyer Fund

The Victorian Homebuyer Fund is a shared equity scheme, designed to make it easier for Victorians to enter home ownership.

If you have a 5% deposit, the Victorian Government could contribute up to 25% of the purchase price in exchange for an equivalent share in the property. This will save you money by reducing your mortgage and removing the need for Lenders Mortgage Insurance (LMI). 

Aboriginal and Torres Strait Islander participants only require a 3.5% deposit and are eligible for a 35% shared equity contribution.

Participants are required to buy back the government’s share in their property over time through refinancing, using savings, or upon sale of the property. The Victorian Government does not charge interest on its investment in participants’ homes, but shares in any capital gains or losses proportionate to its share in the property.

For more information on the Victoria Homebuyer Fund including eligibility requirements, head to the State Revenue Office website.

First Home Guarantee

The First Home Guarantee (FHBG) is an Australian Government incentive for first home buyers looking to purchase their first home. The scheme similar to the Victoria Homebuyer Fund offers first home buyers the ability to purchase a home with a deposit as low as 5%, without the need to pay Lenders’ Mortgage Insurance (LMI). This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of up to 15%.

The FHBG is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government, offering 35,000 places for Aussies across the country each financial year until 30 June, 2025.

Regional First Home Guarantee

The Regional First Home Buyer Guarantee Scheme is a replica of the First Home Guarantee, except it is designed to provide a boost for first home buyers in regional Australia.

With the Regional First Home Guarantee, 10,000 guarantees each year will help first-home buyers purchase a regional home with as little as 5% loan deposit without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of up to 15%.

The Family Home Guarantee

The ‘Family Home Guarantee' allows 5,000 single parents each year to qualify for a home loan with as little as a 2% deposit without having to pay LMI. The government will provide the lender with a guarantee of up to 18% of the property’s value.

The scheme, which was introduced in the 2021/22 Federal Budget, is available to previous owner-occupiers as well as first home buyers; has a maximum annual income cap of $125,000; must be for principal & interest (P&I) repayments, and for loans no longer than 30 years. 

Read more about First Home Owner/Buyer Grants:

Article first published 9 July, 2021. Updated 29 September, 2022.

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