Buying a home in Victoria can be more affordable than it first appears, thanks to several state government incentives, concessions and grants designed to reduce upfront costs, lower barriers to entry, and support first-time and other eligible buyers.
These initiatives can be combined with national schemes, such as low-deposit guarantees, so it’s worth understanding how each works and who qualifies.
There are several concessions and grants available, depending on your situation:
- If you’re a first home buyer
- If you’ve owned property before
Quick Links
- First home buyers
- Buyers who’ve owned before
- Combining multiple schemes for maximum benefit
- Next steps
- FAQs
First home buyers
If this is your first time buying a home, there are grants and concessions available to help reduce your costs.
Victorian First Home Owner Grant (FHOG)
The FHOG is a once-off, $10,000 payment to help eligible first home buyers buy or build a new home in Victoria. The grant is available for any type of home: house, townhouse, unit or apartment. To get this grant, you must live in the home as your primary place of residence.
The grant applies to new homes valued up to $750,000.
Remember, this grant does not apply to existing (previously occupied) homes, investment properties or holiday homes.
First home buyer duty concessions
Land transfer duty (also known as stamp duty) is one of the biggest upfront costs when buying a property. In Victoria, first home buyers can save tens of thousands through specific duty waivers.
If you buy a home with a value:
- Up to $600,000 you pay no duty. If you are purchasing a home and land package, this threshold applies to the land value only.
- $600,001 to $750,000, you pay a reduced amount of duty
These concessions apply to new or established homes, or vacant land where you intend to build your first home.
To qualify, you must:
- Be a natural citizen (not buying in a company or trust)
- Be at least 18 years old
- Live in the home as your primary residence
You can combine a stamp duty concession or exemption with the FHOG, further boosting your savings.
5% Deposit Scheme
The federal government’s 5% Deposit Scheme allows first home buyers to purchase a home with just 5% deposit, without paying lender’s mortgage insurance (LMI).
Under this scheme, the government acts as a guarantor for the remaining 15% of your deposit. As of October 2025:
- There are no limits on the number of places available nationally
- All first home buyers can access the scheme, regardless of income
- Property price caps increased to $950,000 for Melbourne and Geelong, and $650,000 for the rest of Victoria (see table below)
You must live in the property as your primary place of residence. This scheme is not available for investment properties.
The scheme is available for all property types, including new or existing homes, houses, units, townhouses, apartments or if you’re building on vacant land.
Special note: the 5% Deposit Scheme is also available to single parents or legal guardians, even if you have previously owned property. But you must not have any other property interest now. Additionally, you may qualify for the scheme as a single parent or guardian with just 2% deposit.
Help to Buy
Help to Buy is the federal government’s shared equity scheme. It is available for first home buyers or Australians who have previously owned property but currently do not own any property.
Under the scheme, you must have saved a minimum of 2% deposit and obtain a loan from a participating lender. The government will then contribute up to 30% of the purchase price for existing homes or 40% for new homes.
This means you own the home, but share some of the value with the government. Any gains or losses that are made when you sell will be proportionally shared with the government. You may also choose to buy the government’s equity scheme when you can.
To qualify, you must have an annual taxable income at or below $100,000 for individual applicants or $160,000 for single parents and joint applicants.
The property must be at or below the price cap for your location. In Victoria, this is $950,000 for Melbourne and Geelong, and $650,000 for everywhere else.
You must live in the home as your main place of residence. Investment properties do not qualify.
You must be a natural person – a company or trust is not eligible.
You won’t be able to stack the Help to Buy scheme with other federal or state grants or incentives. However, you may still use any stamp duty concessions or exemptions available in Victoria.
There are 10,000 places available each year for this scheme.
Special note: Help to Buy is available for Australians who have previously owned property in Australia or elsewhere but do not currently own any property. There are also special exceptions for single parents who own property jointly with someone else and want to buy the other person’s share or intend to sell their existing ownership.
First Home Super Saver (FHSS) scheme
Another federal scheme, the FHSS is administered by the Australian Taxation Office (ATO) and allows you to save for a deposit using your superannuation fund.
You can make extra contributions to your super fund (on top of your employer’s compulsory contributions) either before tax through salary sacrifice or after tax as personal contributions. You may contribute up to $15,000 per financial year, with a total cap of $50,000 across all years.
Before-tax (concessional) contributions are taxed at just 15%, which is likely lower than your marginal tax rate.
When you’re ready to buy, you can apply to withdraw your contributions plus associated earnings to use toward your first home deposit.
Buyers who’ve owned before
Even if you have previously owned a home anywhere in Australia, there are still several schemes you may qualify for to help you buy property in Victoria.
Temporary off-the-plan stamp duty concession
The Victorian Government offers a generous stamp duty concession for off-the-plan purchases of apartments, units and townhouses. This is currently available until 20 October 2026.
Typically, you pay duty on the dutiable value of your property. This is usually the price you paid for the property, or its market value if that is higher. The concession subtracts construction costs that have been incurred after you sign your contract from the property’s contract price. This will reduce the amount of duty you pay.
This concession is available to all buyers, including investors, companies and trusts. You do not need to live in the property yourself to qualify.
Principal place of residence duty concession
This concession is available to all home buyers (not just first home buyers) who purchase a property to live in as their principal place of residence. It offers stamp duty relief on homes valued up to $550,000.
You must live in the home as your principal place of residence for at least 12 continuous months, starting within 12 months of settlement.
Pensioner and cardholder duty reduction
If you are an eligible Commonwealth concession cardholder, including pensioners, you may be entitled to a once-off exemption or concession on your land transfer duty.
If you buy a home with a value:
- Up to $600,000 you pay no duty.
- $600,001 to $750,000, you pay a reduced amount of duty
The concession applies to existing or new homes. You must use the home as your primary place of residence.
If you are a cardholder or pensioner and this is your first home purchase, you may also qualify for other exemptions or benefits. You can stack these programs and save even more.
Combining multiple schemes for maximum benefit
Many of these incentives can be stacked. First home buyers may save a deposit with the FHSS, receive the $10,000 FHOG, use a stamp duty concession to lower or remove stamp duty altogether and buy with the government’s 5% Deposit Guarantee.
Next steps
Figuring out Victorian housing incentives can be tricky, but understanding these schemes is crucial to making informed decisions and maximising your savings. Whether you’re a first home buyer or looking to upgrade, you may be able to save tens of thousands of dollars.
Mortgage Domayne can help you understand your options, work out what you’re eligible for and guide you through the process. If you’d like to chat about your plans, call us on 1300 366 296 or fill in this enquiry form.
FAQs
Can I get any government help if I’ve owned property before?
Yes. While many grants target first home buyers, non-first buyers may still access things like the off-the-plan stamp duty concession or primary place of residence concessions. Eligibility depends on your circumstances and the type of property you’re buying.
If I sold my previous home, am I considered a first home buyer again?
No. Once you’ve owned residential property in Australia before, you’re generally no longer considered a first home buyer for grant or duty exemption purposes, even if you no longer own it. However, there are some circumstances in which you may be eligible for assistance. Ask a mortgage broker about these options.
Can I combine multiple housing incentives when buying in Victoria?
Yes, some incentives can be used together. For example, an eligible first home buyer might combine a stamp duty concession with a federal low-deposit scheme. However, not all programs can be stacked, and each has its own rules. Checking eligibility early helps avoid missing out.
Can I use Victoria’s housing incentives for an investment property?
Most Victorian and federal incentives are designed for owner-occupiers, not investors. But there are some exceptions, like the temporary off-the-plan duty concession. Ask your mortgage broker about which purchases qualify and under what conditions.
