First Home Owner Grant VIC: The Ultimate Guide to the $10,000 Grant, Stamp Duty Exemption, and Stacking Schemes
Summary:
- The First Home Owners Grant (FHOG) in Victoria gives $10,000 for new or substantially renovated homes under $750,000
- Stamp duty relief can save Victorian first home buyers tens of thousands of dollars on new and established homes
- First home buyers can stack federal and state deposit schemes with the FHOG and stamp duty concessions to reduce upfront costs
If you're buying your first home in Victoria, you have access to three financial incentives that can save you tens of thousands of dollars. Between the First Home Owner Grant (FHOG), stamp duty relief and federal deposit support schemes, Victorian first home buyers are in a stronger position than ever to enter the property market.
Understanding how these schemes work – and how to stack them for maximum benefit – is essential to making your first home purchase more affordable. Here's everything you need to know about the FHOG Victoria, stamp duty exemptions and the additional support available to eligible buyers.
Part 1: The FHOG Cash Grant (Strictly New Homes)
The First Home Owner Grant in Victoria provides a $10,000 once-off, tax-free cash payment to eligible first home buyers. This money goes directly towards your purchase, typically paid at settlement.
What property is eligible?
The rules are strict and clear: this grant is only available for buying or building a new property.
The property must be valued at $750,000 or less.
New homes include:
- A brand new house or apartment purchased from a builder or developer
- A home you build yourself on land you own
- An off-the-plan purchase
- A substantially renovated home where the renovation costs equal at least 50% of the property's value
Established or existing homes do not qualify for this cash grant, even if they fall within the price cap. If you're buying an established property, you won't receive the $10,000 payment, though you may still be eligible for stamp duty relief.
What are the occupancy requirements?
At least one applicant must occupy the home as their principal place of residence (PPR) for 12 continuous months, and this period must start within 12 months of settlement. This is a strict requirement – if you fail to meet it, you may need to repay the grant.
When do you receive the FHOG payment?
For completed new homes, the grant is typically paid at settlement. For homes you're building or buying off-the-plan, payment can be made at the first progress payment, helping with construction costs.
Part 2: The Biggest Upfront Saving – Stamp Duty Relief (New & Established)
While the $10,000 FHOG often gets the most attention, first home buyer stamp duty exemptions or concessions are where new buyers in Victoria see their largest upfront saving.
This benefit applies to new or established properties, or vacant land intended for building your first home, making it more widely accessible than the cash grant.
Stamp duty is calculated on the dutiable value. This is the price paid for the property or its market value, whichever is greater.
Full stamp duty exemption (properties up to $600,000)
If you purchase a home valued at $600,000 or less, you'll pay $0 in stamp duty.
Let’s say, for instance, you buy a one-bedroom unit in St Kilda, VIC, where the median value is currently $382,000 according to Domain. Typically, you would be required to pay up to $17,990 in stamp duty, depending on whether this was your PPR or not. However, with the stamp duty exemption for first home buyers, this is reduced to $0.
Understanding the local market is just as important as the savings themselves. It is a good idea to read our vibrant guide to living in St Kilda, Melbourne, which covers the cost of living, property types, and the unique lifestyle of the Port Phillip area.
For those looking at the investment potential of these entry-level units, it is a good idea to read our St Kilda property growth forecast article, which explains why units are set to outperform houses in 2026.
Stamp duty concession (properties between $600,001 and $750,000)
For properties valued between $600,001 and $750,000, you'll receive a reduced stamp duty concession. The exact saving depends on the purchase price, but it still represents a significant financial benefit.
Let’s look at buying a home in St Kilda again. A two-bedroom unit would currently cost a median of $620,000. Normally, stamp duty on this home would cost you up to $32,270. But, with the stamp duty concession for first home buyers, this is reduced to just $4,302 – a significant saving of more than $27,000.
Off-the-plan concession for apartments
If you're buying an apartment or unit off-the-plan, you may qualify for an additional concession.
Currently, this concession works by calculating duty only on the value of the land and construction completed up to the date you signed the contract. This effectively reduces the amount of stamp duty you need to pay by deducting construction costs incurred after the contract date, potentially maximising your total savings.
This concession is available to anyone buying an apartment, unit or townhouse off-the-plan, not just first home buyers and owner-occupiers. There are also no thresholds on property value, so the concession is currently available for apartments, units and townhouses of any value.
Part 3: Stacking for Deposit & LMI (Federal & State Schemes)
Beyond the FHOG and stamp duty relief, first home buyers in St Kilda and across Victoria can access federal and state schemes designed to help with deposit requirements and lenders' mortgage insurance (LMI).
First Home Guarantee (federal scheme)
Previously known as the First Home Guarantee, the Federal Government’s 5% Deposit Scheme allows eligible first home buyers to purchase a home with as little as 5% deposit while avoiding LMI.
Normally, if you are buying with less than a 20% deposit, your lender would require you to pay LMI – an upfront cost, often thousands of dollars, that protects the lender in case you default on mortgage repayments.
By using a government guarantee, you can avoid this cost.
Under the 5% Despoti Scheme, the government provides a guarantee to a participating lender so they can lend you up to 95% or 98% of the home's value.
From October 2025, this scheme has been expanded to include all eligible first home buyers (no caps on the number of places available each year), buyers of all incomes and higher property price thresholds. In Melbourne, the 5% Deposit Scheme is available for homes valued up to $950,000. In the rest of Victoria, the threshold is $650,000.
And there’s even better news: the 5% Deposit Scheme can be stacked (used simultaneously) with both the FHOG and stamp duty relief. This means you could potentially:
- Buy a new home under $750,000
- Put down just 5% as a deposit
- Receive the $10,000 FHOG
- Pay no stamp duty (if under $600,000) or reduced stamp duty
- Avoid LMI costs
Victorian Homebuyer Fund (state shared equity scheme)
The Victorian Homebuyer Fund stopped accepting applications in September 2025. As of December 2025, eligible buyers may qualify for the Commonwealth’s Help to Buy scheme.
Help to Buy will assist 10,000 buyers nationally a year. Under the scheme, you will need to save a minimum 2% deposit and obtain a home loan from a participating lender. The government will then contribute up to 30% for an existing home and 40% for a newly built home towards the purchase price.
To be eligible, you must be an Australian citizen, be at least 18 years old, have a minimum annual income at or below $100,000 for individual applicants or $160,000 for single parents and joint applicants. You must occupy the home as your PPR, and you can’t currently own any property in Australia or overseas.
Help to Buy applies to both new and existing homes, as well as vacant land for the construction of a new home. The property price caps for Help to Buy are the same as the 5% Deposit Scheme, so buyers in Melbourne can qualify for homes valued up to $950,000.
Part 4: Key Eligibility Rules
To qualify for the FHOG, stamp duty concessions or 5% Deposit Scheme in Victoria, you must meet specific eligibility criteria. While each scheme has its own unique criteria, there are fundamental rules about prior ownership and residency that apply to all of them.
Prior ownership
This is the most critical rule: you (and your spouse or partner) must be genuine first home buyers. You must not have previously owned residential property in Australia, either jointly or separately, before 1 July 2000. You must not have lived in a residential property in Australia that you or your spouse or partner owned or part-owned on or after 1 July 2000 for a continuous period of at least six months.
Age and residency
All applicants must be natural persons (not a company or trust).
All applicants must be at least 18 years of age at settlement or completion of construction.
At least one applicant must be an Australian citizen or permanent resident at the time of settlement or completion of construction.
Occupancy
At least one applicant must occupy the home as their PPR for at least 12 months, starting within 12 months of settlement or construction finishing.
Conclusion: The Path to Ownership
By combining the $10,000 FHOG, stamp duty exemptions or concessions, and government deposit support schemes, eligible Victorian first home buyers can significantly reduce upfront costs and make home ownership more achievable.
Navigating all the applications and eligibility – especially if you’re trying to stack multiple benefits – can be challenging. Using an experienced mortgage broker like those at Loan Market Razor can help. We can help confirm your eligibility across all schemes, coordinate applications, and guide you through the process of securing a loan suited to your needs from a participating lender.
While many first-time purchasers start with units, those looking for larger homes often look to specific pockets known for their liveability. It is a good idea to read our guide to the best family friendly suburbs Melbourne, which explores the City of Port Phillip and Stonnington to help you find the right neighborhood.
Ready to find out exactly how much you can save? Talk to an expert broker at Loan Market Razor today to confirm your eligibility for all schemes and map out your path to getting a loan.
FAQs
Who is eligible for the FHOG in Victoria?
You must be a first home buyer, not have previously owned property in Australia and the home must be new or substantially renovated and valued at $750,000 or less. At least one applicant must live in the property for 12 continuous months.
Can I use the FHOG with stamp duty relief and deposit schemes?
Yes. Eligible first home buyers can stack the FHOG with stamp duty exemptions or concessions, as well as federal and state deposit support schemes like the 5% Deposit Scheme or Help to Buy.
When do I receive the FHOG payment?
For completed new homes, the grant is usually paid at settlement. For homes under construction or bought off-the-plan, it can be paid at the first progress payment.