The dream of owning a home is a cornerstone of the Australian dream, especially for first home buyers in Victoria. Recent changes announced in the 2024/2025 Victorian state budget have significant implications for aspiring homeowners.
The First Homeowner Grant (FHOG)
The FHOG offers $10,000 to eligible first home buyers who buy or build a new home valued up to $750,000. The home must not have been previously sold or occupied. However, the FHOG will end after the 2024/2025 fiscal year due to the introduction of the federal Help to Buy scheme. The Victorian government has allocated an additional $700 million for its final year.
The Help to Buy Scheme
The Help to Buy scheme provides shared equity home loans to eligible buyers with a deposit as low as 2%. The government acts as an equity partner, funding and owning 30–40% of the property. No lender's mortgage insurance is payable on the loan, and you will not need to pay any rent on the government's share. This means lower initial costs and easier access to homeownership for many buyers.
The Victorian Homebuyer Fund
Started in 2021, the Victorian Homebuyer Fund allows the government to contribute up to 25% of the purchase price in exchange for a share in the property. You only need a 5% deposit (3.5% for Aboriginal and Torres Strait Islander participants). The scheme covers properties priced up to $950,000 in Melbourne and Geelong or $600,000 in regional Victoria.
Stamp Duty Exemptions and Concessions
- No duty for homes up to $600,000; reduced duty for homes $600,001 to $750,000
- Off-the-Plan Concessions for reduced duty on off-the-plan purchases
- Pensioner Concessions reducing duty for homes up to $750,000
- Principal Place of Residence Concessions for homes up to $550,000