First Home Buyer Victoria: 2026 Guide to Grants and Savings

Buying a home in Victoria can be challenging for first home buyer, especially if you’re buying your first property. For many first home buyers in Victoria, rising property prices, growing deposit requirements, and constantly changing policies can make the process feel overwhelming.

The rules and incentives for first home buyers are not the same across Australia. Victoria has its own grants, stamp duty concessions, and eligibility requirements, which differ significantly from states like New South Wales. Understanding these differences early can make a meaningful impact on your buying journey.

This article is designed to help first home buyers navigate the complexities of purchasing their first home in Victoria. From understanding key considerations before you buy to moving from online inspections to finally settling into your new home, this guide aims to provide clear, practical insights at every stage.

First Home Buyer Victoria: The Definition

For any first home buyer Victoria residents entering the market in 2026, understanding how eligibility is assessed is the first critical step.

In Victoria, a first home buyer is defined as an individual (not a company or trust) aged 18+ who has never owned or co-owned residential property in Australia, nor received a previous First Home Owner Grant (FHOG). Eligible buyers must be Australian citizens or permanent residents and occupy the new or substantially renovated home (valued at $750,000 or less) for at least 12 continuous months.

What Support is Available in 2026?

The Victorian Government offers a range of supports designed to help you open the door to your first property.

1. The $10,000 First Home Owner Grant (FHOG)

The FHOG is a one-off payment of $10,000 for new homes only. This includes:

• Off-the-plan apartments or townhouses.

• House and land packages.

• Newly completed homes sold for the first time.

• The Rule: You must move into the home within 12 months of settlement and stay for a full year.

2. Stamp Duty (Land Transfer Duty) Relief

Many first home buyer Victoria applicants underestimate how state-based concessions can reduce upfront purchase costs. While the cash grant is a great bonus, the savings available through stamp duty relief are often much larger.

• Full Exemption: Pay $0 duty if the property is valued at $600,000 or less.

• Concession: A sliding scale discount applies for properties between $600,001 and $750,000.

• Off-the-Plan Bonus: Extended through October 2026, this allows you to pay duty only on the land component for strata properties, which can save you thousands even if the total price is slightly higher.

3. Federal Schemes (The 2026 Version)

Federal policies shifted significantly in late 2025 to make the market more accessible:

• Home Guarantee Scheme (HGS): Buy with a 5% deposit (or 2% for single parents) without paying Lenders Mortgage Insurance (LMI).

• No Income Caps: As of late last year, high earners are no longer excluded from the 5% scheme.

• Unlimited Places: The annual “cap” on places has been removed—if you qualify, you’re in.

• Help to Buy: With the Victorian Homebuyer Fund now closed, this federal shared equity scheme is the main alternative for those with very small deposits.

How Much Deposit Do You Really Need?

In 2026, there is no “one-size-fits-all” answer, but there are two primary pathways:

• The Traditional Path (20% Deposit): On a $700,000 home, this is $140,000. You’ll generally secure lower interest rates and avoid LMI entirely.

• The Low-Deposit Path (2%–5% Deposit): Using government guarantees, that same $700,000 home might only require a $35,000 deposit. This helps you escape the “rental trap” sooner, though your monthly repayments will be higher.

Pro Tip: Lenders scrutinise your “financial fitness.” They look at your income stability, HECS debt, and even “Buy Now, Pay Later” habits. Aim for three months of clean, consistent spending before applying.

Common Mistakes to Avoid in Victoria

1. Focusing Only on Grants: Don’t rely so heavily on grants that you have zero “buffer” left for moving costs or urgent repairs.

2. The $750,000 “Cliff”: If you bid $751,000 at an auction, you lose the entire stamp duty concession. That extra $1,000 bid could cost you an additional $25,000+ in tax.

3. The Auction “Ego”: Victorian auctions are unconditional. There is no cooling-off period. Never bid without a “Human-Assessed” pre-approval in your hand.

What Should You Do Next?

For every first home buyer Victoria planning a purchase in 2026, preparation and early planning can significantly improve outcomes. The jump from researching to buying is a series of logical steps:

1. Audit Your Position: Know your “financial fingerprint.” Are you using a 2% scheme or a 20% deposit?

2. Finance First: Get a pre-approval from a broker who understands Victorian-specific nuances like Section 32 Vendor Statements.

3. Build Your Team: Identify a conveyancer, a building inspector, and a broker before you start hitting the Saturday inspections.

Feel free to contact us to book a consultation and discuss your first home buyer options in Victoria.