What do I get as a Victorian first home buyer?

First home buyer incentives change and also vary from state to state. Please contact us for updated information as part of your research and purchasing preparation.

Log on to http://www.firsthome.gov.au to ascertain your eligibility. Read on for accurate information for your entitlements as a Victorian first home buyer.

To be eligible for the Victorian ‘first home owner grant’ (FHOG):

  • Eligibility is determined at the date of settlement or completion of construction.
  • All applicants and their spouse/partner(s) must be considered when answering eligibility questions.

Eligibility checklist for a first home buyer

If you answer YES to ALL of the below questions, you will most likely be entitled to receive the FHOG:

  1. Is this the first time each applicant and/or their spouse/partner will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory of Australia?
  2. Is each applicant and their spouse/partner a person who has never owned a residential property, either jointly, separately or with some other person before 1 July 2000 in any State or Territory of Australia? NOTE: Applicants are not eligible for a grant if they or their spouse/partner have held a relevant interest in residential property prior to 1 July 2000, even if they have never occupied the property.
  3. Is each applicant and their spouse/partner a person who has never occupied a residential property for a continuous period of at least six months in which they acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia?
  4. Is each applicant a natural person (e.g. not a company or trust) and at least 18 years of age?
  5. Is at least one applicant a permanent resident or Australian Citizen?
  6. Will at least one applicant be occupying the home as their principle place of residence for a continuous period of at least 12 months commencing within 12 months of completion of the eligible transaction?
  7. Has each applicant on or after 1 July 2013:
  • Entered into a contract for the purchase of a home in Victoria OR
  • Entered into a contract to have a home built in Victoria

The glossary of terms mentioned above are at the bottom of this FAQ.

Constructing new homes – $10,000 – $20,000

In Victoria, if you enter into a contract to build a new home, or buy a home that has never been lived in before under $750,000, you will be entitled to the $10,000 FHOG. The grant rises to $20,000 for new homes in regional Victoria.

Eligibility requirements

  • Use the property as your principle place of residence within 12 months of becoming entitled to possession of the property (which usually occurs at settlement or completion of the build), and
  • Reside in the property for a continuous period of at least 12 months

$0 stamp duty or reduced stamp duty for Victorian properties under $750,000

If you sign a contract of sale in Victoria to buy/build a new property for < $600,000 then you will pay $0 in stamp duty. Otherwise, If you sign a contract in Victoria to buy/build a new property between $600,001 to $750,000 then stamp duty is significantly reduced and increases on a sliding scale.

Visit our stamp duty calculator to calculate your expected stamp duty cost.

First home buyers options for entering the property market

  1. Get enough gifted funds from your parents to bring the loan amount down to your maximum borrowing capacity or to the lender’s maximum ‘loan to value ratio’.
  2. Buy with a friend (some lenders offer the ‘property share’ option)
  3. Utilise a guarantor for security support to avoid lenders mortgage insurance.
  4. Husband/wife or defacto to become a co borrower to maximise borrowing capacity.
  5. Apply for a personal loan for the deposit required to get into the property market.

The “First Home Loan Deposit Scheme”


  1. Singles < $125k taxable income & couples < $200k taxable income
  2. Have to be a single or a couple (Married or defacto, maximum of two borrowers)
  3. To be a first home buyer (never owned owner occupied or investment property before nor have vacant land awaiting construction)
  4. To be an Australian citizen (not for permanent residents nor NZ citizens)
  5. To move in as an owner occupier within 6 months and remain as an owner occupier
  6. Can be established or a new build but to be under the price cap (<$600,000 in Melbourne & < $375,000 for regional areas)
  7. Loans to be owner occupied P&I basis only (can be ‘interest only during the construction period though)
  8. Minimum deposit required is ‘5% + costs’
  9. Contract of sale must be dated after 1/1/2020 unless signed for a ‘House & Land’ package or an ‘Off-the-plan’ purchase

Available Lenders on our panel

  • Auswide Bank, Bankfirst, Beyond Bank, Commonwealth Bank, National Australia Bank

Key Stages

  1. Once a FHLDS place has been reserved by your chosen lender, a conditional approval must be granted within 14 calendar days
  2. Once conditional approval is received, you have 90 calendar days to return with your contract of sale
  3. Brokers then have 30 days to submit customer documents and receive confirmation of a FORMAL APPROVAL from your chosen lender
  4. You then have 100 calendar days to settle and drawdown your home loan
  5. You must move into your home within 6 months or begin construction within 26 weeks and to be completed within 24 months.

Your lender will require:

  1. Certified Australian birth certificate or current Australian passport or Australian citizenship certificate
  2. Medicare card (must have 10 digits & position number must be 1 digit) – crucial to reserve a position for this FHLDS.
  3. Previous year’s Tax ‘Notice of Assessment’ (Client has to lodge previous year’s tax return otherwise not eligible for the FHLDS)
  4. Completed “First home buyer declaration” (a lender form), from each borrower
  5. Completed “Eligibility questionnaire”
  6. Other lender forms

Other important facts:

  • You can refinance to another participating lender provided you do not increase the loan amount or the term or switch to an ‘Interest Only repayment’ facility, or change loan purpose to investment purposes
  • The guarantee stays in place until:
  • the loan is refinanced to a non-participating lender
  • you sell your home
  • move out
  • or until your loan balance reduces to below 80% lvr
  • Customers can purchase existing properties, H&L Packages, ‘land & separate contract to build a home’ (excludes land only, owner builder contracts)


If the cos is for a… Then…
H&L Package Where both contracts are with the same vendor/builder (or with 2 members of a corporate group), the contract of sale can be dated before 1/1/2020.

Ø  To be eligible for the Scheme the building contract must have been entered into prior to the funding of the land loan.

Ø  If your customer has purchased land and entered into a building contract separately or for H&L packages where the vendor/builder are a different person, the cos must be dated on or after 1/1/2020.

Off-the-plan Purchase To be eligible for the Scheme the building contract must have been entered into prior to the funding of the land loan.

Glossary of terms

Applicant: The person applying for a grant who, on completion of the purchase of a home or construction of a new home, will own or hold a relevant interest in the land on which the home is built.

Completion of the eligible transaction: When the applicant is entitled to possession of the property under the contract, or the building is ready for occupation as a place of residence and the applicant is registered on the Certificate of Title.

Consideration: Purchase price or cost of construction of the home.

Eligible transaction: Contract for the purchase of a new home, contract to build a home or construct a home as an owner builder on or after 1 July 2013.

New home: A home that has not previously been lived in or sold as a place of residence including house and land packages and off the plan.

Relevant interest: A person with a relevant interest may be described as someone who will have a legal entitlement to occupy the home being bought or constructed. usually this will be the person registered as proprietor on the title. This commonly is an estate in fee simple. Each person acquiring a relevant interest must be an applicant on the application form.

Spouse/partner: A person is a spouse of another if they are legally married to each other. A person is a partner of another if they are in a domestic relationship regardless of gender.

About the author

Matt Carra

Matt Carra

Matt Carra is the Owner of Blue Key Finance, a Finance Broker since 2004, an SMSF Lending Specialist, a Property Investment Educator, and a Mentor to new Finance Brokers entering the finance industry. Matt is passionate about providing valuable guidance and honest advice, educating Australians on how to buy their first homes and invest successfully while protecting them with knowledge. Matt has strong long-term relationships with his panel of lenders and extensive knowledge on their credit policies, and utilises that skillset to give you peace of mind by recommending you to the right lender the first time, to negotiate a better deal, and to fight for your cause – that’s Matt’s commitment to you. Contact Matt today to start the conversation on 0425 726 538 or email matt.carra@bluekeyfinance.com.au