First Home Buyer Guide Victoria (VIC) 2026 - Grants, Schemes & Loans

In Victoria, the First Home Owner Grant (FHOG) is $10,000. This grant is available to first home buyers purchasing or building a new home valued at up to $750,000. The grant applies only to new homes - not established properties. You must be an Australian citizen or permanent resident, at least 18 years old, and not have previously owned property in Australia. Applications are typically lodged through your lender at settlement or directly through the State Revenue Office Victoria (SRO).

First home buyers in Victoria are fully exempt from stamp duty (land transfer duty) on properties valued up to $600,000. For properties valued between $600,001 and $750,000, a concessional rate applies on a sliding scale. Above $750,000, the standard stamp duty rate applies with no first home buyer concession. This exemption applies to both new and existing homes. On a $600,000 property, the exemption saves approximately $31,070 compared to a non-first-home buyer. Victoria is also transitioning to an annual land tax model for new property purchases, which may offer additional options for first home buyers.

The property price cap for the Victorian First Home Owner Grant is $750,000 for new homes, including newly built homes, off-the-plan purchases, substantially renovated homes, and owner-builder new constructions. This is the total value of the property including the land. If your property exceeds $750,000 by even $1, you receive no grant - there is no sliding scale for the FHOG. Note that the FHOG cap ($750,000) is higher than the full stamp duty exemption threshold ($600,000), so you can receive the FHOG and still pay some concessional stamp duty on properties between $600,001 and $750,000.

No, the Victorian First Home Owner Grant is not available for existing (established) homes. The $10,000 grant applies only to new homes, including newly built properties, off-the-plan apartments, substantially renovated homes, and owner-builder new constructions. However, if you are buying an existing home in Victoria, you can still access the stamp duty exemption (up to $600,000), the First Home Buyer Guarantee (5% deposit, no LMI), Help to Buy (30% government equity for existing homes), and the First Home Super Saver Scheme.

The minimum deposit to buy a first home in Melbourne depends on which government schemes you use. With Help to Buy, you need just 2% - that is $12,000 on a $600,000 property. With the First Home Buyer Guarantee (FHBG), you need 5% - $30,000 on $600,000 - with no Lenders Mortgage Insurance. Without any scheme, most lenders require at least 5% but you will pay LMI of approximately $8,000-$20,000 unless you have 20% ($120,000). Melbourne's more affordable entry points compared to Sydney mean the FHBG with 5% deposit is achievable for many buyers.

Yes, the First Home Buyer Guarantee (FHBG) is available in Victoria. The property price cap for the scheme in Melbourne is $950,000, and for the rest of Victoria it is $650,000. There is no income cap. Since 1 October 2025 places are unlimited and there is no income cap. The FHBG allows you to buy with a 5% deposit without paying LMI, saving approximately $8,000-$20,000 on a typical Melbourne purchase. Melbourne's lower median prices compared to Sydney mean more properties fall within the FHBG price cap.

Income caps for first home buyer schemes in Victoria vary by program. The 5% Deposit Scheme (formerly the First Home Buyer Guarantee) has had no income cap since 1 October 2025. Help to Buy income caps are $103,000 for a single applicant and $165,000 for joint applicants or a single parent for 2026-27 (taxable income). The First Home Owner Grant (FHOG) in Victoria has no income test - eligibility is based on property value and type. The First Home Super Saver Scheme (FHSS) also has no income cap. Stamp duty concessions in Victoria have no income test.

On a $90,000 salary with no other debts, most lenders will approve a first home loan of approximately $480,000-$560,000. Lenders apply APRA's 3% serviceability buffer, testing affordability at around 9.5%. A $30,000 HECS-HELP debt reduces borrowing capacity by approximately $30,000-$45,000. Using a joint application with a partner earning $70,000 (combined $160,000) increases borrowing power to approximately $800,000-$940,000, covering most Melbourne suburbs.

The most affordable suburbs for first home buyers in Melbourne in 2026 include areas in the western growth corridor such as Melton ($380,000 median unit), Wyndham Vale ($400,000 median unit), and Tarneit ($420,000 median unit). In the north, Craigieburn and Roxburgh Park offer units from $380,000-$430,000. The south-eastern corridor around Cranbourne and Pakenham has houses from $550,000-$620,000. Regional centres like Ballarat ($310,000 median unit) and Bendigo ($320,000 median unit) offer significantly lower entry points with V/Line commuter rail access.

For first home buyers in Melbourne, the choice depends on location priority versus space. Melbourne's median unit price ($560,000) falls well within the stamp duty exemption threshold ($600,000), making units tax-free for most FHBs. Houses in growth corridors ($560,000-$680,000) may also qualify for the FHOG ($750,000 cap for new builds). Be aware that strata levies on units add $2,000-$6,000 per year. Melbourne has stronger unit supply than Sydney, keeping unit prices more accessible. Houses in outer suburbs offer land value appreciation but longer commutes.

The Victorian Homebuyer Fund - the state's shared equity scheme in which the government took an equity share of up to 25% (35% for Aboriginal and Torres Strait Islander buyers) - is closed to new applications; existing participants continue under their agreements. Shared equity for new buyers is now offered through the federal Help to Buy scheme, which has its own income and property price caps. Confirm the current scheme rules with the State Revenue Office and Housing Australia before relying on them.

Regional Victoria offers significantly lower entry prices and access to the 5% Deposit Scheme (which replaced the Regional First Home Buyer Guarantee in October 2025) with 5% deposit and no LMI. Median house prices in Ballarat ($480,000), Bendigo ($490,000), and Geelong ($680,000) are well below Melbourne's $850,000 median. However, Melbourne offers stronger rental demand, better public transport, and greater job diversity. Consider growth corridors like the western suburbs (Melton, Wyndham) which offer suburban prices with improving city connectivity via the Suburban Rail Loop and Western Rail Plan.