First Home Buyers in Victoria: The Complete 2026 Guide

Victoria remains one of Australia's most active property markets for first home buyers, with Melbourne offering a wide range of price points from inner-city apartments to detached houses in outer suburbs. The state government provides grants and duty exemptions that can reduce your upfront costs significantly, and federal schemes layer on top of these to reduce the deposit required.

This guide covers every state and federal support available to first home buyers in Victoria in 2026.

Victoria First Home Owner Grant

The Victorian First Home Owner Grant provides $10,000 to eligible buyers purchasing or building their first new home.

Eligibility Requirements

The grant applies to new homes only, including newly built houses, off-the-plan apartments, house and land packages and substantially renovated homes.

The purchase price or construction cost must not exceed $750,000.

You must be an Australian citizen or permanent resident, 18 years of age or older, and must not have previously owned or co-owned residential property in Australia.

You must occupy the property as your principal place of residence within 12 months of settlement and live there for at least 12 continuous months.

At least one applicant on the application must be a natural person (not a company or trust).

How to Apply

Apply through your lender at the time of settlement. Most approved lenders in Victoria can process the grant application as part of the settlement process.

Stamp Duty Exemptions and Concessions for First Home Buyers

Stamp duty (transfer duty) in Victoria is progressive and can represent a very large upfront cost. The Victorian Government's first home buyer duty exemptions and concessions are among the most significant financial benefits available.

Principal Place of Residence Duty Exemption (Under $600,000)

First home buyers purchasing a property valued at up to $600,000 pay zero stamp duty. This is a complete exemption.

On a $580,000 property, the standard stamp duty would be approximately $30,070. First home buyers in this range pay nothing.

Duty Concession ($600,001 to $750,000)

For properties priced between $600,001 and $750,000, a sliding scale concession applies. The concession reduces progressively, reaching zero at $750,000.

On a $680,000 property, first home buyers pay approximately $10,710 in stamp duty rather than the standard $36,070. The saving is approximately $25,360.

These concessions apply to both new and established homes, making the Victorian scheme more broadly accessible than Queensland's FHOG (which only applies to new builds).

Regional Victoria: Additional Support

Victoria has periodically offered additional grants and incentives for first home buyers purchasing in regional areas, recognising the government's interest in supporting regional communities. Check with the State Revenue Office of Victoria for current regional-specific programs, as these have changed over time.

Federal Schemes Available in Victoria

First Home Guarantee

Eligible Victorian first home buyers can purchase with a five per cent deposit without LMI, backed by the federal government guarantee. Since October 2025, the scheme is uncapped.

For 2026, property price caps under the First Home Guarantee for Melbourne are $800,000. Regional Victoria has a lower cap. Confirm the current cap for your specific location with a participating lender, as these are updated periodically.

Family Home Guarantee

Single parents can purchase with a two per cent deposit without LMI. Federal income and property price cap requirements apply.

Help to Buy

Eligible low-to-moderate income buyers in Victoria can access the shared equity scheme with the government co-owning up to 30 to 40 per cent of the property.

First Home Super Saver Scheme

Victorian buyers can use voluntary superannuation contributions under the FHSS scheme to accumulate up to $50,000 per person toward their deposit in a tax-advantaged environment.

The Victorian Property Market in 2026

Melbourne experienced a more subdued period of price growth in 2024 and 2025 relative to Brisbane and Perth, influenced by higher land taxes for investors, rising holding costs and affordability constraints. Analysts note that Melbourne's relative underperformance compared with other capitals has created a rotation opportunity, with some forecasters expecting Melbourne to be a stronger performer in the back half of 2026.

For first home buyers, Melbourne offers more accessible entry points than Sydney for comparable property types and distances from the CBD. Outer suburbs in Melbourne's west, north and southeast provide entry-level houses in the $550,000 to $700,000 range.

Melbourne apartments, particularly inner-city one and two-bedroom units, offer lower entry prices and remain popular with first home buyers who want proximity to employment and lifestyle amenity.

Key Costs to Budget For

Even with the stamp duty exemption on properties under $600,000, Victorian first home buyers need to budget for conveyancing fees ($1,200 to $2,500), building and pest inspections ($500 to $800), loan application fees (variable) and moving costs.

Use the Stamp Duty Calculator at HomeLoanTools.com.au to calculate your exact duty obligation based on your purchase price and first home buyer status in Victoria, and the Purchasing Power tool to confirm your total available budget.

Cooling-Off Period in Victoria

Private treaty property sales in Victoria come with a three-business-day cooling-off period. During this time, you can withdraw from the contract by giving written notice and forfeiting 0.2 per cent of the purchase price. There is no cooling-off period at auction.