How to Take Advantage of First Home Buyer Grants in Australia

Australia has one of the most generous sets of first home buyer support programs in the world — but they're spread across federal and state governments, have different eligibility rules, and change periodically. Many first home buyers either miss schemes they qualify for, or fail to stack multiple grants and concessions because nobody has explained that they can. This guide gives you a clear picture of what's available in Victoria and how to make the most of it.

The Australian Grants Landscape: Federal and State

First home buyer support operates on two levels. The federal government runs income-tested schemes that reduce your deposit requirement or allow you to save for a deposit through super. The Victorian state government runs the First Home Owner Grant (FHOG), stamp duty concessions, and the Victoria Homebuyer Fund. These programs can often be used simultaneously — meaning a single purchase can attract multiple benefits at once.

First Home Owner Grant (FHOG) — Victoria

The FHOG is a $10,000 cash grant paid by the Victorian state government to eligible first home buyers who purchase or build a new home. It applies only to new dwellings — either a newly constructed home, a home purchased off-the-plan (including house and land packages), or a home you contract to build yourself. It does not apply to established (second-hand) properties.

To qualify, you must:

• Be an Australian citizen or permanent resident aged 18 or over
• Be purchasing or building your first home in Australia — you must never have previously owned residential property anywhere in Australia
• Intend to move into the property as your principal place of residence within 12 months of settlement or construction completion
• Live in the property for a continuous period of at least 12 months
• Purchase a new home with a total value (including land) of $750,000 or less

If you are purchasing with a partner, both of you must meet the eligibility criteria — if one person has previously owned a home, neither of you can access the FHOG.

The FHOG is typically applied at settlement — your solicitor or conveyancer lodges the application on your behalf, and the $10,000 is credited toward settlement costs or purchase price.

First Home Guarantee — Federal

The First Home Guarantee (administered by Housing Australia) allows eligible buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government acts as guarantor for the difference between your deposit and the 20% threshold, covering the lender's risk.

Key eligibility criteria:

• Australian citizen or permanent resident
• Income cap: $125,000 per year for single applicants, $200,000 combined for couples
• Must be a first home buyer (never owned property in Australia)
• Must intend to owner-occupy (investment purchases are excluded)
• Property price caps apply by location — in Melbourne, the cap is currently $800,000
• Places are allocated annually — spots can run out, so timing matters

This scheme is processed through participating lenders. Not every bank participates, and not every participating lender's product will suit your situation. Your broker navigates this for you and submits to the right lender in a single application.

Family Home Guarantee — Federal

The Family Home Guarantee is available to eligible single parents with at least one dependent child. It operates similarly to the First Home Guarantee but requires only a 2% deposit, with the government guaranteeing up to 18% of the purchase price. Unlike other schemes, it is available to both first home buyers and previous homeowners who do not currently own property. The same property price caps and annual place limits apply.

Victoria Homebuyer Fund — Shared Equity

The Victoria Homebuyer Fund is a shared equity scheme administered by the state government. Under this program, the government contributes up to 25% of the purchase price (or up to 35% for eligible Aboriginal and Torres Strait Islander buyers) in exchange for a proportional equity stake in your property. This reduces your required deposit and your loan size — meaning lower repayments and no LMI.

As your equity position improves over time, you buy out the government's share gradually. The scheme is income-tested and has property value limits. It is a good option for buyers who have a steady income and good serviceability but struggle to accumulate a large enough deposit in the current market.

Stamp Duty Concessions in Victoria

Victoria's stamp duty concessions for first home buyers represent one of the largest single savings available. The concessions currently work as follows:

• Properties up to $600,000: complete exemption — zero stamp duty payable
• Properties $600,001 to $750,000: a partial concession that reduces on a sliding scale as the price approaches $750,000
• Properties above $750,000: full standard stamp duty applies (no first home buyer concession)

On a $580,000 purchase, a first home buyer pays $0 in stamp duty. A non-first-home-buyer on the same property would pay approximately $28,000–$31,000. This concession applies to both new and established properties, unlike the FHOG which is new homes only.

First Home Super Saver Scheme (FHSS)

The FHSS is a federal scheme that allows you to make voluntary concessional (before-tax) contributions to your superannuation and later withdraw those amounts — plus earnings — to use as a home deposit. Contributions are taxed at 15% inside super rather than at your marginal rate (which may be 34.5% or higher), creating a meaningful tax advantage over two to three years of saving.

You can withdraw up to $15,000 per financial year and a maximum of $50,000 in total (across all years). The scheme requires careful administration — you must apply to the ATO for a release, and the property must be purchased within 12 months of withdrawal. A financial adviser or accountant should be involved if you plan to use this scheme.

Can You Stack Multiple Grants and Schemes?

Yes — in many cases, multiple schemes can be used simultaneously, which is where the real leverage lies for first home buyers. For example, a couple purchasing a new $600,000 home in Melbourne could potentially access:

• $10,000 FHOG (new home, under $750k)
• $0 stamp duty (under $600k threshold)
• First Home Guarantee (5% deposit, no LMI — saving roughly $18,000–$25,000)
• FHSS savings used as part of their 5% deposit

The eligibility requirements differ across schemes, so not every buyer will qualify for every grant — but understanding the full landscape means you never leave available assistance on the table.

How a Broker Helps You Navigate Eligibility

The complexity of these schemes — with their differing eligibility rules, annual place limits, participating lenders, and property price caps — is exactly where a mortgage broker adds significant value. Your broker will:

• Assess your eligibility across all relevant federal and state schemes
• Identify which participating lenders suit your situation under the federal guarantees
• Coordinate the FHOG application process alongside your loan settlement
• Ensure you don't accidentally disqualify yourself by purchasing through the wrong structure or missing a condition
• Advise on whether the Victoria Homebuyer Fund or a guarantor loan is a better fit for your specific circumstances

Getting this right matters — applying through the wrong lender, missing the income cap by a small amount, or failing to satisfy an occupancy condition can result in grants being clawed back or schemes being unavailable when you need them most. Our team at FinancingAU works through this analysis with every first home buyer client as a standard part of the process, at no charge to you.