Victoria offers some of the most generous first home buyer incentives in Australia, but navigating the different grants, exemptions, and concessions can be confusing. Many first home buyers don’t realise they can combine multiple benefits (the FHOG, stamp duty exemptions, and federal government schemes) to potentially save over $40,000 on their first property purchase. At Mortgage & Finance Advisory, we help first home buyers across Geelong, the Surf Coast, Melbourne, and regional Victoria understand exactly what they’re eligible for and structure their purchase to maximise every available benefit.
This guide covers the complete picture of Victorian first home buyer incentives for 2026: the FHOG, stamp duty exemptions and concessions, the First Home Guarantee scheme, and how to combine these benefits for maximum savings.
The FHOG is a state government grant of $10,000 available to eligible first home buyers who purchase or build a new residential property in Victoria. The key word here is “new”. The grant is not available for established (existing) homes. This is a deliberate government policy to encourage new housing construction.
A new home for FHOG purposes includes a newly constructed home that hasn’t been previously occupied, a home purchased off the plan (apartment or townhouse), a house and land package where you contract to build a new home on vacant land, and an owner-builder project where you build your own home. A home is considered “new” if it hasn’t been previously sold as a place of residence and hasn’t been lived in. A display home that’s been used as a display for less than 5 years may also qualify.
The total value of the property (including the land) must not exceed $750,000 to qualify for the FHOG. For house and land packages, the combined value of the land and the completed building must be under $750,000. There’s no minimum value threshold.
To receive the FHOG in Victoria, you must meet all of the following criteria: you must be a natural person (not a company or trust), be aged 18 years or over, be an Australian citizen or permanent resident (at least one applicant), have never previously owned residential property in Australia (this includes investment properties, even if you never lived in them), and you must move into the property within 12 months of settlement or completion and live there for a continuous period of at least 12 months.
Separate from the FHOG, Victoria offers stamp duty relief specifically for first home buyers. Unlike the FHOG, these exemptions apply to both new and established homes, making them relevant to a much wider group of buyers.
First home buyers purchasing a property valued at $600,000 or less pay zero stamp duty. On a $600,000 property, the standard stamp duty would be $31,070, so this exemption represents a significant saving. This applies to both new and established homes, provided you meet the first home buyer eligibility criteria.
For properties valued between $600,001 and $750,000, a sliding scale concession reduces the duty payable. The closer the property value is to $600,000, the larger the concession. At $750,000, the concession reduces to zero and you pay full stamp duty.
| Scenario | FHOG | Stamp Duty Saving | Total Benefit |
|---|---|---|---|
| New home at $500,000 | $10,000 | $21,970 (full exemption) | $31,970 |
| New home at $600,000 | $10,000 | $31,070 (full exemption) | $41,070 |
| New home at $700,000 | $10,000 | ~$12,000 (partial concession) | ~$22,000 |
| Established home at $550,000 | $0 (not eligible) | $25,070 (full exemption) | $25,070 |
A couple in Geelong purchased a $580,000 off-the-plan townhouse. As first home buyers purchasing a new property under $600,000, they received the $10,000 FHOG plus a full stamp duty exemption worth $28,770. They also qualified for the First Home Guarantee scheme, allowing them to purchase with just 5% deposit ($29,000) without paying LMI. Combined benefits totalled $38,770 plus LMI savings of approximately $14,000, over $52,000 in total savings. We helped them navigate all three programs simultaneously and timed the applications to ensure everything settled smoothly.
The Australian Government’s First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance. The government guarantees the gap between your deposit and 20%, meaning you save potentially $15,000 to $30,000 in LMI costs. Income caps and property price caps apply, and places are limited each financial year.
Specifically for buyers purchasing in regional areas (including Geelong, Ballarat, Bendigo, and other regional Victorian centres), this scheme has the same structure as the FHBG but with separate allocated places. If you’re buying in regional Victoria, this may be easier to access than the main FHBG scheme due to separate allocations.
For single parents with dependants, the Family Home Guarantee allows purchase with just a 2% deposit without LMI. This is available regardless of whether you’ve previously owned property.
The FHOG application is typically processed through your lender or broker as part of the home loan application. You don’t need to apply to the State Revenue Office separately (though you can). Your broker submits the FHOG application alongside your mortgage application, and the grant is paid at settlement, either directly to you, to your lender to supplement your deposit, or to the vendor as part of the settlement funds.
The required documentation includes proof of identity (passport, driver’s licence, birth certificate), evidence of citizenship or permanent residency, the signed contract of sale or building contract, evidence that the property is new (builder’s declaration, certificate of occupancy), and a statutory declaration confirming you meet all eligibility criteria.
Assuming the FHOG applies to all first home purchases: The most common mistake. The FHOG only applies to new homes in Victoria. If you’re buying an established property, you’ll benefit from the stamp duty exemption but not the $10,000 grant.
Not understanding the residency requirement: You must move into the property within 12 months and live there for at least 12 continuous months. If you rent it out before meeting this requirement, you’ll need to repay the grant. Short absences (holidays, work travel) are generally acceptable, but extended periods living elsewhere are not.
Previous property ownership disqualifying you: If you’ve ever owned residential property anywhere in Australia (even an investment property you never lived in, or a property inherited and subsequently sold), you don’t qualify as a first home buyer for either the FHOG or the stamp duty exemption.
Missing the property value cap: The $750,000 cap for the FHOG includes the total value of land and building. For house and land packages, ensure the combined contract value doesn’t exceed $750,000. The $600,000 threshold for full stamp duty exemption is separate and applies to the purchase price.
Not factoring FHOG into deposit calculations: Some lenders will count the $10,000 FHOG toward your deposit, effectively increasing your borrowing capacity or reducing your LMI. Others won’t. Your broker can identify which lenders accept the FHOG as part of your deposit and factor this into your application strategy.
One of the most powerful strategies for Victorian first home buyers is combining the FHOG with other available government schemes. When stacked together, these benefits can reduce your upfront costs by tens of thousands of dollars.
If you’re purchasing a new home valued under $600,000, you can potentially receive both the $10,000 FHOG and a full stamp duty exemption. On a $550,000 new home, the combined benefit would be approximately $10,000 (FHOG) plus $28,070 (stamp duty savings) for a total benefit of around $38,070. This is a substantial reduction in your upfront costs and can make the difference between being able to buy and continuing to rent.
The federal First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance. Combined with the FHOG, you could potentially buy a $600,000 new home with just $30,000 deposit (5%), receive $10,000 back via the FHOG, pay no stamp duty, and avoid $15,000-$25,000 in LMI. The effective cash requirement drops dramatically, making home ownership achievable for many who thought they were years away from buying.
The FHSS scheme allows you to withdraw voluntary super contributions (up to $50,000) to use toward your first home deposit. Combined with the FHOG, this can significantly boost your purchasing power. For example, if you’ve accumulated $35,000 through the FHSS and receive the $10,000 FHOG, that’s $45,000 toward your purchase before considering your regular savings.
The FHOG application process is simple, but certain mistakes can delay or disqualify your claim. Here’s what to watch out for based on our experience helping hundreds of first home buyers through the process.
Not meeting the residence requirement. You must move into the property within 12 months of settlement (or completion of building) and live there as your principal place of residence for a continuous period of at least 12 months. Renting the property out before completing this 12-month residency period will void your grant eligibility, and you’ll be required to repay it.
Previous property ownership. If you or your partner have previously owned residential property in Australia (including investment properties you never lived in), you’re generally not eligible for the FHOG. This includes properties held in company names or trusts where you had a beneficial interest. The definition is broader than many people expect, so disclose any previous property ownership to your broker upfront.
Not applying on time. You must apply for the FHOG within 12 months of completing the eligible transaction (settlement for existing new homes, or completion of building for construction). Missing this deadline means missing the grant entirely, with limited avenues for late applications.
Incorrect contract details. Ensure the contract of sale correctly identifies the property as a new home and that all purchaser names match the FHOG application. Discrepancies between the contract and application can cause delays or complications.
Since the FHOG only applies to new homes, many first home buyers choose to build or purchase off-the-plan to access the grant. Here’s what you need to know about each pathway.
Purchasing a house and land package from a developer is one of the simplest ways to access the FHOG. The total value of the package (land plus building) must be $750,000 or less to qualify. Your broker can help structure the finance to cover both the land purchase and construction, often with a single construction loan that draws down in stages as building progresses.
If you’ve purchased a vacant block (or been gifted one), you can build a new home and claim the FHOG provided the total value of land plus building doesn’t exceed $750,000. The grant applies to the building contract value, and you’ll need to be an owner-builder or engage a licensed builder. Construction loans are available to fund the build, with drawdowns at each stage of construction.
Purchasing an apartment off-the-plan from a developer qualifies for the FHOG provided the total purchase price is $750,000 or less and it’s a new dwelling that hasn’t been previously occupied. Off-the-plan purchases can offer the advantage of a longer settlement period (giving you more time to save), stamp duty calculated on the contract price rather than the value at completion, and potential capital growth between contract and settlement.
First home buyers in regional Victoria may have access to additional benefits beyond the standard FHOG. The federal Regional First Home Buyer Guarantee provides similar LMI-free lending benefits specifically for buyers in regional areas. Regional areas often have lower median property prices, making the FHOG and stamp duty concessions relatively more impactful on affordability. Some local councils offer rate concessions or incentives for new home construction in growth areas.
For buyers looking at areas like Geelong, the Surf Coast, Ballarat, Bendigo or other regional centres, the combination of lower entry prices, government incentives and strong lifestyle appeal makes regional Victoria an increasingly attractive option for first home buyers.
Yes, the FHOG applies to owner-builder projects and house-and-land packages where you’re building a new home. For construction, the grant is typically paid at the first progress payment or at the discretion of your lender. The total value of the land plus completed building must be under $750,000.
No, only one FHOG of $10,000 is available per eligible transaction, regardless of how many buyers are on the contract. If you’re buying jointly, you receive one grant between you. Both (or all) buyers must meet the eligibility criteria, though in some cases only one buyer needs to be a first home buyer if the others have a specific exemption.
If your partner (spouse or de facto) has previously owned residential property in Australia, you may not be eligible for the FHOG even if you’ve never owned property yourself. The eligibility criteria consider your partner’s ownership history as well. However, the specific rules vary by circumstance, so discuss your situation with your broker or the SRO.
Yes, off-the-plan purchases can qualify for both the FHOG (because the property is new) and the stamp duty exemption or concession (based on the purchase price). Additionally, off-the-plan purchases in Victoria may benefit from the concession that calculates stamp duty on land value only, providing further savings.
No, the FHOG is not assessable income for tax purposes. It doesn’t need to be declared in your tax return and won’t affect your taxable income or any government benefits calculations.
The State Revenue Office Victoria has an eligibility checker on their website. Alternatively, your broker can assess your eligibility as part of your initial consultation. We check FHOG eligibility, stamp duty exemption eligibility, and federal scheme eligibility simultaneously to ensure you access every benefit you’re entitled to.
We help first home buyers combine the FHOG, stamp duty exemptions, and government guarantee schemes to save as much as possible. Free consultation, no obligation.
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About the Author
Melanie McNaughton is the founder of Mortgage & Finance Advisory, specialising in helping first home buyers across Geelong, the Surf Coast, Melbourne, and regional Victoria navigate grants, exemptions, and loan options. Melanie’s deep knowledge of Victorian first home buyer incentives ensures every eligible client receives the maximum benefit available to them.
