Grants and Schemes for Victorian First Homebuyers

First Home Owner Grant

The First Home Owner Grant (FHOG) is designed to help first-time property buyers cover some of the costs of purchasing a property. It’s a one-off, tax-free grant of $10,000 for people who haven’t purchased property before.

Read on, and if you think you qualify, or want to see how it can benefit you, contact us at Mortgage Broker Melbourne.

Federal and some state governments offer a variety of grants and schemes designed to get people into their first home. In Victoria, the FHOG can be a terrific leg-up to getting on the first rung of the property ladder. But not everyone qualifies.

See here whether you can get the FHOG, or any other government assistance when purchasing a property.

Federal and some state governments offer a variety of grants and schemes designed to get people into their first home. In Victoria, the FHOG can be a terrific leg-up to getting on the first rung of the property ladder. But not everyone qualifies.

See here whether you can get the FHOG, or any other government assistance when purchasing a property.

First Home Owner Grant Amount

The First Home Owner Grant in Victoria is available to people who want to buy an existing property or build a new place to live in. $10,000 doesn’t seem like much when properties are hitting their current heights, but every bit can help when trying to secure a deposit. If you can buy with a 10% deposit, it’ll add $100,000 to your purchasing power.

And if you can couple the Victorian FHOG with other government assistance, it can be the difference between living in your own place or renting forever.

First Home Buyer Grant Eligibility

For starters, the property you purchase must be valued below $750,000. That usually means a city apartment or a house a bit out of town or in a regional location.

So if you’re looking for a 6 bedroom joint with a tennis court in South Yarra, you’re out of luck! But many new properties, including inner-urban apartments and mid-suburban homes, are priced to encourage new buyers.

Here are some of the things to look for to qualify for a First Homebuyer Grant:

• A new house, townhouse, apartment or unit
• New properties being sold off the plan
• Properties undergoing major renovations, including demolition.

To secure a first homebuyer loan you need to tick these boxes:

• At least 18 years old
• Australian citizen or permanent resident
• Never owned a property or received a grant previously
• Moving in within a year and staying for at least a year after that
• Not an investor or part of a trust of company.

Sound like you? Contact us for more information about how we can help you apply for the grant and find a home loan that suits you.

Victoria Homebuyer Fund

Victorians might also be able to take advantage of the Victoria Homebuyer Fund (VHF). This is a “shared equity” scheme, meaning the government can contribute an amount towards a home purchase, and then co-own the property with the recipient.

By the Numbers

A potential buyer needs at least 5% of the purchase price. The more, the better. The Victorian Government then provides eligible participants with a contribution of up to 25% of the purchase price. The rest is covered by a home loan in the usual way. Over time, the purchaser pays back the government and their home-loan lender, eventually taking full ownership of the property.

Stamp Duty Exemptions

Victorian first homebuyers who purchase a property for less than $600,000 may qualify for an exemption from stamp duty. This could save you up to $30,000 of up-front costs on a purchase. Lower stamp duty rates then apply for properties valued from $600,000 up to $750,000.

Federal Government Assistance

First Home Guarantee Scheme

The national government also runs the First Home Guarantee Scheme. For those who qualify, Housing Australia guarantees up to 15% of the value of a first home, meaning you’d avoid Lenders Mortgage Insurance, which is a potential saving on many thousands of dollars.

Read our recent article that provides more detail on first homebuyer grants from the federal government, which reflect those in place from August 2024. In this article our team unpacks which schemes are available, how they work and how you can qualify for these. If you need help understanding these further, meet our team of brokers for advice and support!

Family Home Guarantee

This is another scheme aimed at single parents or guardians. Those who qualify can access a government guarantee of up to 18% on a purchase, meaning you can potentially get into a home of your own with a deposit as low as 2%.

Get Expert Advice

At Mortgage Broker Melbourne, we help our clients wade through the details of various schemes to help you purchase a first property for the lowest cost in the fastest amount of time.

Some buyers may even be eligible for several grants at once. We’ll then work with you to find the best home loan to suit your individual needs.

Our service is 100% free for you, although if you do get a loan, your new lender will probably charge their usual loan establishment and account fees. Get into your own home faster and easier with help from our home loan experts.

Contact Mortgage Broker Melbourne today.