What incentives are available for “first home buyers”

What incentives are available for Vic First Home Buyers?

For many young Australians, home ownership can feel more like a distant dream than something within reach. Rising living costs, strong property price growth and slow wage increases have put real pressure on those hoping to buy their first home.

With property prices soaring across the nation, there’s no doubt affordability is a key factor hindering entry into the market. But if you are an aspiring first-home buyer, it’s important to remember that with the right strategy and guidance, home ownership can be achievable.

Here are some of the ways you might be able to get into your own home sooner.

Help to Buy

Help to Buy is a new shared equity scheme designed to make home ownership more accessible. The Federal Government can contribute up to 30% (for existing homes) or 40% (for newly built homes) to your mortgage. With this scheme, you only need at lease a 2% deposit. It is available for those who do not currently own land/property.

Applications opened last week on 5 December 2025, with 10,000 spots available each year for the next 4 years. There are income limits of up to $100,000 for individual applicants or $160,000 for single parents and joint applicants. Currently only two Banks are participating in this scheme.

5% Deposit Scheme

The 5% Deposit Scheme is open to all first-home buyers and allows you to purchase your first home with at least a 5% deposit, without having to pay Lenders’ Mortgage Insurance (LMI).

There are property price caps, but there are no limits on income and there are now unlimited scheme places. The 5% Deposit Scheme (formerly known as the Home Guarantee Scheme) has already helped over 248,000 Australians get a leg up on the property ladder since 2020.

Currently in Victoria under “The General Stream” it applies to property prices < $950,000 in metro Melbourne or < $650,000 in regional Victoria. You have to move in within 6 months of settlement. Australian citizens and permanent residents are eligible. It can be previous home owners or land owners who haven’t owned in previous ten years.

Under “The Single Parent Stream” it will allow you to purchase your first home with at least a 2% deposit. It is for eligible single parents (i.e. not married, non-spousal and not defacto) with at least one kid.

First Home Owners Grant

This is a one off grant of $20,000 for first home buyers wanting to construct a new home in regional Victoria or $10,000 wanting to construct a new home in metropolitan Melbourne. In both cases it can be an established home but one that has never been lived in before.

Stamp Duty Exemption or discounted stamp duty

The Victorian Government will waive the high stamp duty cost if you purchase a new or established home for < $600,000. Otherwise, the stamp duty will be concessionally discounted if the property price ranges from $600,001 to $750,000. Go to our ‘stamp duty calculator’ here to accurately work out the exact stamp duty amount for first home buyers and non-first home buyers.

First Home Super Saver Scheme

This scheme allows you to save a deposit for your first home using your super.

You make extra voluntary contributions to your super fund, so that you can grow your saving faster. The benefit is you can make the most of lower tax rates.

When you’re ready to purchase, you can apply to withdraw your savings plus associated earnings and use them towards your first home deposit.

Support from family

There are a few different ways your parents or a loved one may be able to help you enter the property market.

Your parents might provide a cash gift towards your deposit (lenders will likely require a statutory declaration), or loan you the money under your own agreement.

They could also act as a guarantor. This is where they use their equity as security for your loan, reducing or eliminating the need for a deposit and helping you to avoid the high cost of lenders mortgage insurance (LMI).

Another option is to unlock their equity by refinancing their mortgage, then gifting or lending you the money. There’s also the option of joint ownership, meaning you purchase the property together.

It’s important to assess the risks involved with each scenario and seek professional advice, and to make sure everything is in writing to avoid any misunderstandings.

Ready to get started?

Buying your first home can feel overwhelming, but you do not have to navigate it alone. If you would like to understand your borrowing options and start building a plan with confidence, we are here to help.

Get in touch and let’s chat through your finance questions so you feel supported and ready to take your next step toward home ownership.