Tag: Government Schemes

As a first home buyer in Victoria you can get real help: no stamp duty on a home up to $600,000, a $10,000 grant if you buy or build a new home, and a federal scheme that lets you buy with a 5% deposit. Knowing which of these you qualify for, before you start inspecting, changes what you can afford and where you should look.

Below I cover each one, what the numbers mean for buyers in Melbourne’s North, five steps to take first, and the mistakes I see first home buyers make.

Key points

• First home buyers in Victoria pay no stamp duty on a home valued at $600,000 or less, and reduced duty between $600,001 and $750,000.
• The $10,000 First Home Owner Grant is for new homes valued up to $750,000. Established homes don’t qualify.
• Under the federal 5% Deposit Scheme, the price cap in Melbourne is $950,000, and there has been no income cap since 1 October 2025.
• Get pre-approval and confirm your eligibility before you inspect, so you know your real budget.

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What Help Can a First Home Buyer in Victoria Get?

There are three main kinds of help, and they work differently. Two come from the Victorian Government through the State Revenue Office. The third is a federal scheme run through Housing Australia and participating lenders.

Stamp duty exemption and concession

If you’re a first home buyer in Victoria and the home is worth $600,000 or less, you pay no land transfer (stamp) duty. Between $600,001 and $750,000 you pay a reduced amount, and above $750,000 you pay full duty. This applies to established homes as well as new ones, as long as you meet the State Revenue Office’s conditions, including living in the home as your principal place of residence.

The $10,000 First Home Owner Grant

The First Home Owner Grant is $10,000 for a new home valued up to $750,000. That includes building a new home, buying off the plan, or buying a home that hasn’t been lived in before. You need to live in it as your principal place of residence for at least 12 months. Buying an established house or apartment doesn’t qualify.

The 5% Deposit Scheme

Under the federal scheme, the government guarantees part of your loan, so you can buy with a 5% deposit without paying lenders mortgage insurance. Since 1 October 2025 there has been no income cap and no limit on places, according to Housing Australia. The property price cap is $950,000 in Melbourne and Geelong, and $650,000 in the rest of Victoria. You apply through a participating lender or broker.

What Does That Mean in Melbourne’s North?

It depends on what you’re buying. Hotspotting’s Suburb Report for Northcote (16 October 2026) puts the median house price at $1,653,000, well above every cap. The median unit price is $617,500, which sits just above the $600,000 full stamp duty exemption and well under the $950,000 cap for the 5% Deposit Scheme.

For many first home buyers in the inner north, that means a unit or apartment is where the schemes do the most work. If you’re set on a house, the deposit scheme can still help with the deposit, but you’ll be paying full stamp duty, so plan for it.

First Home Buyer in Victoria: 5 Steps Before You Start Looking

1. Get pre-approval, and ask which schemes you qualify for

A broker can tell you what you can borrow, whether you’re eligible for the 5% Deposit Scheme, and which lenders offer it. Check when your pre-approval expires, because they don’t last forever.

2. Work out your total costs, not just the deposit

Add stamp duty if it applies, conveyancing, a building and pest inspection, loan fees, insurance and moving costs. Your budget is the price you can pay after all of those, with a buffer left over.

3. Write a one-page brief

List your must-haves and your nice-to-haves. Most buyers have to give ground on one of four things: price, location, the dwelling or the land. Decide which one before you inspect, and decisions on the day get much easier.

4. Learn the documents

Ask for the Property Price Statement at every inspection, and read my guide to the section 32 so you know what to look for in the vendor statement. Have a conveyancer lined up before you find the place, so the contract can be checked quickly.

5. Know the difference between auction and private sale

There’s no cooling-off period when you buy at auction in Victoria. For most private sales you have 3 business days to cool off, but you lose $100 or 0.2% of the price, whichever is more. If you’re bidding, your finance and contract review need to be done before auction day.

What Mistakes Do First Home Buyers Make?

• Assuming the $10,000 grant applies to an established home. It doesn’t.
• Budgeting right up to a scheme cap, with nothing left for duty, fees or a rate rise.
• Bidding at auction before the contract and section 32 have been read.
• Letting pre-approval expire in the middle of the search.
• Skipping the building and pest inspection to save a few hundred dollars.

Should a First Home Buyer Use a Buyer’s Agent?

Not every first home buyer needs one. If you have time to inspect every weekend, you’re comfortable negotiating with a selling agent and you know the area, you can do it yourself with a good broker and conveyancer.

A buyer’s agent is worth it when you’re short on time, you keep missing out, or you’re buying somewhere you don’t know well. I act only for buyers, and I handle the search, the inspections, the negotiation and the run to settlement. My guide to off-market properties and my pre-settlement inspection checklist cover two stages first home buyers often ask me about.

Frequently Asked Questions

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Being a first home buyer in Victoria comes with real help, but only if you check your eligibility early and budget for everything the schemes don’t cover. Get pre-approval, write your brief, and have the documents checked before you sign or bid.

Jason McCall is a licensed buyer’s advocate (licence 091847L) and the founder of Buyer’s Agent Victoria Pty Ltd (licence 091857L), based in Thornbury. He is a member of the REIV and PICA. This article is general information, not financial advice. Check your eligibility with the State Revenue Office and your broker.