Victorian First Home Buyer Grants and Incentives

If you're planning to build your first home, understanding the government grants and schemes you may qualify for could save you thousands of dollars. 

A Guide To Building Your First Home

If you're planning to build your first home, understanding the government grants and schemes you may qualify for could save you thousands of dollars.

From the Victorian First Home Owner Grant to Australian Government initiatives that can help reduce your deposit or lower the amount you need to borrow, there are several ways to make building your first home more affordable than you might think.

If you're building with Burbank, our team can help explain the grants and schemes that may apply to your circumstances and, together with our finance partner Livi Lending, help you explore your finance options.
 

Who is considered a First Home Buyer?

While each grant and scheme has its own eligibility requirements, generally a first home buyer is someone who hasn't previously owned and lived in a residential property in Australia.

Some schemes also consider your spouse or partner's property history, along with whether you've previously received first home buyer assistance. Because the eligibility requirements vary, it's worth understanding which grants and schemes may apply to your circumstances. Some buyers may even qualify for more than one type of assistance.
 

First Home Owner Grant

The Victorian Government's First Home Owner Grant (FHOG) provides a one-off $10,000 payment to eligible first home buyers building a new home valued at up to $750,000. The grant is designed to help reduce the upfront cost of building your first home and, unlike a loan, it doesn't need to be repaid.

To qualify, you generally need to be an Australian citizen or permanent resident, at least 18 years old, building your first home and intending to live in it as your principal place of residence for at least 12 continuous months, beginning within 12 months of construction being completed.


 

5% Deposit Scheme

Saving a 20% deposit can take years, but the Australian Government 5% Deposit Scheme helps eligible first home buyers build a new home with as little as a 5% deposit.

Rather than waiting until you've saved a 20% deposit, the Australian Government guarantees part of your home loan. This allows participating lenders to offer eligible buyers a home loan without the added cost of Lenders Mortgage Insurance (LMI), potentially saving thousands of dollars.

The scheme is available to Australian citizens and permanent residents who are at least 18 years old and are building a home to live in, rather than an investment property. There are no income limits, but the total value of the home you're building must be no more than $950,000 in Melbourne and Geelong, or $650,000 elsewhere in Victoria.

The scheme can be used whether you're building through a house and land package or buying vacant land and signing a building contract with your chosen builder.
 

Help to Buy Scheme

If saving a deposit is one of the biggest barriers to building your first home, the Australian Government Help to Buy Scheme could be another option.

Designed to help eligible buyers with low to moderate incomes, the scheme reduces both the deposit you need and the amount you borrow. Eligible buyers may only need a 2% deposit, while the Australian Government contributes up to 40% of the cost of a new home in exchange for an equity share. This reduces the amount you need to borrow and can lower your mortgage repayments.

To qualify, you generally need to be an Australian citizen, at least 18 years old, earn no more than $103,000 a year as an individual or $165,000 as a couple or single parent, and build a home within the Victorian property price cap of $950,000 in Melbourne and Geelong, or $650,000 elsewhere in the state. The scheme is also limited to 10,000 places nationally each financial year.

Because the Australian Government contributes towards the cost of your home, it owns a share of the property, which you can buy back over time or repay when you sell.

Save on Stamp Duty

If you're buying vacant land to build your first home, you may also be eligible for a stamp duty exemption or concession.

In Victoria, eligible first home buyers pay no stamp duty on vacant land valued up to $600,000, while a reduced amount applies to land valued between $600,001 and $750,000. Because stamp duty is based on the value of the land, not the cost of building your home, it can significantly reduce your upfront costs before construction even begins.
 

Combining Grants and Schemes

Some buyers may even qualify for more than one type of assistance, combining the Victorian First Home Owner Grant and stamp duty concessions with an Australian Government scheme, such as the 5% Deposit Scheme or Help to Buy.

Understanding how these grants and schemes work together could help reduce your upfront costs and make building your first home more affordable. Burbank and our finance partner Livi Lending can help explain which options may be available based on your circumstances.
 

Ready to build your first home?

Building your first home may be more achievable than you think. With a range of Victorian and Australian Government grants and schemes available, understanding what support you may be eligible for is a great place to start.

At Burbank, we're here to help you navigate the home building journey with confidence. Together with our finance partner Livi Lending, we can help you understand the grants and schemes that may apply to your circumstances and connect you with a lending specialist to explore the finance options available to you.

Discover what's possible. Speak to a New Home Consultant today or explore our website to learn more.