Defence Force First Home Buyer Victoria

If you're in the ADF and trying to buy your first home in Victoria, you're often juggling a few extra moving parts that other buyers don't have to think about. A posting change that lands out of nowhere. A deployment window right when you're meant to move in. A partner whose name on the contract changes what you're eligible for. And, in Melbourne, the fun of trying to line up finance and contract checks before an auction on a Saturday morning.

The upside is that Defence members can access the usual Victorian first home buyer support, plus Defence housing assistance. There's also a very handy Victorian exemption that recognises the reality of service life, so you're not automatically knocked out just because you can't meet a standard 'move in and live there' rule.

Let's walk through what 'Defence Force first home buyer Victoria' really looks like in practice, and how to keep your grant, your duty savings, and your sanity intact.

Start with the Big Picture: Two Rulebooks, Not One

Most first home buyer conversations focus on the State Revenue Office rules (stamp duty and the First Home Owner Grant). Defence members also need to keep one eye on lender rules and any Commonwealth schemes you're using (like a low deposit guarantee).

That matters because:

Victorian grants and duty concessions have their own residency rules, and Defence members can be exempt in certain cases.
Lenders and Commonwealth schemes can still insist on owner occupation within a set timeframe, even if Victoria doesn't.

So the trick is aligning the whole stack: your contract, your loan, your posting timetable, and the declarations you're making along the way.

What First Home Buyers Can Get in Victoria (The Usual Support)

First Home Buyer Stamp Duty Exemption or Concession

In Victoria, eligible first home buyers pay:

No duty for homes with a dutiable value up to $600,000
A reduced amount of duty for dutiable value from $600,001 to $750,000

This can apply to established homes, new homes, and even vacant land (as long as it's genuinely for building your first home).

The standard rule is that you must live in the property as your principal place of residence for at least 12 months, starting within 12 months of settlement (with extra timing rules for vacant land builds).

The First Home Owner Grant (FHOG) in Victoria

If you're buying or building a new home (never previously sold or lived in), and the dutiable value is up to $750,000, the Victorian FHOG is $10,000.

The usual residency requirement is that at least one applicant must live in the home as their principal place of residence for at least 12 months, starting within 12 months of settlement (or construction completing).

A quick reminder that catches people out: FHOG eligibility looks at applicants and their spouses or partners, even if that spouse or partner isn't going on the application. If your spouse or partner has owned before (or lived in a home they owned for a qualifying period), it can affect eligibility.

The Key Victorian Advantage for Defence Members: A Residency Exemption

Here's where being in the ADF can make a real difference in Victoria.

For both the FHOG and the first home buyer duty concession, current members of the Australian Army, Air Force or Navy can be exempt from the residency requirement if:

You're enrolled to vote in Victorian elections, and
You're either on duty or on leave

This exemption does not apply to reservists or Australian Public Service staff.

What this means in plain terms: if service life genuinely prevents you from meeting the usual 'move in within X months and live there for Y months' rule, Victoria has a pathway that recognises that.

Two practical notes we raise with clients all the time:

The exemption is about residency requirements. It doesn't turn an investment property into an owner occupier purchase by magic. Your intention and declarations still matter.
You still need to meet the other eligibility rules (first home status, value thresholds, and so on).

This is one of those areas where getting your paperwork and timing right can save a lot of back and forth later.

A Melbourne Specific Twist: The Temporary Off the Plan Duty Concession

Melbourne has a steady stream of apartment and townhouse stock sold 'off the plan'. That can suit Defence buyers, especially if you're trying to lock something in now and line it up with a future posting.

Victoria currently has a temporary off the plan duty concession that:

Applies to all buyers (including companies and trusts)
Applies to off the plan purchases of strata apartments and townhouses
Requires the contract to be signed between 21 October 2024 and 20 October 2026
Has no property value cap
Has no requirement to live in the property
Reduces dutiable value by excluding certain construction costs incurred after the contract date

If you're a first home buyer planning to live in the property, you may be looking at a combination of concessions (depending on your exact circumstances). If you're buying something you might not move into straight away because of service commitments, this temporary concession is worth knowing about, because it's not tied to owner occupation.

This is also where contract review matters. Off the plan contracts can have long settlement periods, sunset dates, and clauses that shift risk to the buyer if construction timing changes.

Defence Housing Assistance: The Extra Layer Many Buyers Forget to Line Up

DHOAS (Defence Home Ownership Assistance Scheme)

DHOAS provides a monthly subsidy towards interest on an eligible home loan, for eligible current and former ADF members. For 2025–26, DHOAS lists three subsidy tiers with subsidised loan amounts and maximum monthly subsidy figures (based on an interest rate benchmark that can change).

DHOAS is not a Victorian grant. It's a Defence benefit. But in day to day terms, it can make servicing your loan easier, which may help you borrow within a safer comfort zone, especially when rates and living costs bounce around.

The big 'watch me' with DHOAS is that it comes with its own conditions, including occupancy requirements. If you're posted away and plan to rent your place out, you'll want to check how that interacts with your DHOAS conditions before you commit.

HPAS (Home Purchase Assistance Scheme)

HPAS is a one off payment designed to assist eligible ADF members when purchasing a home. The published payment figure has been $16,949 (and can be pro rated if you own only part of the property).

In practice, buyers often use HPAS to cover the early, annoying costs that arrive before you've even found the right place: building inspections, valuation gaps, lender fees, moving costs, and that first hit of 'buying stuff' once you settle.

HPSEA and Other Posting Related Help

Many ADF members also look at the Home Purchase or Sale Expenses Allowance (HPSEA) and other relocation benefits when a purchase is tied to a posting. These can help with certain transaction costs, but they have strict eligibility rules and evidence requirements.

The takeaway: Defence benefits can be brilliant, but they rarely 'auto apply'. They need to be planned into your timeline and your paperwork from the start.

Real Life Melbourne Scenarios (And How the Rules Play Out)

Scenario 1: Auction in the Inner North, with a Posting on the Horizon

You're renting in Brunswick, you've done the inspections, and you're eyeing a small townhouse in Coburg that's going to auction in two weeks. Your partner is also ADF. There's a decent chance one of you gets posted interstate within the next year.

What we'd be thinking about before auction day:

Auction contracts are usually unconditional. No finance clause, no building and pest clause, no second chances.
Your first home buyer duty position depends on the dutiable value and eligibility. If you're within the thresholds, the savings can be significant.
If service life is likely to disrupt moving in, the Defence residency exemption may help for state duty and FHOG, but only if you meet the conditions (including being enrolled to vote in Victorian elections, and being current permanent ADF on duty or leave).
Your lender may still expect you to occupy the property. If you're using a low deposit option, your occupancy promise is usually taken very seriously.

The practical move: get the contract and Section 32 checked before you bid, and get a broker or lender confirmation about occupancy expectations so you're not boxed in later.

Scenario 2: Buying an Apartment in the West, Off the Plan

You're looking at an apartment in Footscray sold off the plan. Settlement might be 18 months away. You're hoping to be back in Melbourne by then, but Defence life can change fast.

Key points:

Off the plan contracts can shift timelines. You need to understand your sunset date position and what happens if completion is delayed.
Duty outcomes can be different for off the plan purchases because of how dutiable value is calculated, and Victoria's temporary off the plan concession may apply if your contract date falls in the current window.
If you're relying on FHOG, remember it only applies to new homes and has strict eligibility rules tied to applicants and spouses or partners.

The practical move: treat the contract review as non negotiable, and make sure your finance strategy can cope with valuation changes at settlement time.

Scenario 3: Buying Land on Melbourne's Edge and Building

A lot of Defence families look at land and build packages in areas like Clyde North, Tarneit, or Mickleham because it feels like a clearer path to space and a backyard.

This route has its own traps:

Your timing obligations can be different when you buy vacant land, because your 'move in' date is tied to the occupancy certificate or longer build windows.
Building contracts add another layer of risk: variations, delays, and 'who pays' questions if things change.

The practical move: get advice early, so your grant and duty applications reflect the right dates and the right transaction structure.

The Owner Occupier Question: Don't Let One Declaration Undo Another

Even if Victoria gives you a Defence residency exemption, you still need to be careful with any scheme that expects owner occupation.

For example, Housing Australia's guidance for the Home Guarantee Scheme has stated that home buyers under the scheme are required to move into the property as owner occupier within 6 months of settlement, and to live in the property while the guarantee is active.

So you can end up in a situation like this:

Victoria may not require you to live there (because you qualify for the Defence exemption), but
Your lender or guarantee scheme may require you to live there

That mismatch can create a real headache, especially if you're planning to rent the property out because you've been posted away.

If you're not sure which rulebook will bite you first, we'd rather you find out before you sign.

Common Pitfalls We See with Defence First Home Buyers in Victoria

Buying with a Partner Who Isn't a First Home Buyer

This one is far more common than people expect. You might be a first home buyer, your partner might have owned years ago, and suddenly the first home buyer benefits change or disappear.

Also watch the 'spouse or partner' definition. For FHOG, eligibility checks can extend to a spouse or partner even if they are not applying with you.

Assuming the Defence Exemption Applies to Every Defence Role

In Victoria, the exemption is for current members of the Army, Air Force or Navy who meet the voting enrolment and duty or leave conditions. It does not apply to reservists or APS staff.

Leaving the Contract Review Too Late

Melbourne purchases move quickly. Agents will tell you 'it's a standard contract'. It rarely is.

Even on an ordinary house purchase, the Section 32 can hide:

Easements or restrictions that limit building works
Unapproved structures
Owners corporation issues (for units and apartments)
Special conditions shifting risk to the buyer

At auction, you're locked in the moment the hammer falls. The time to check is before you get swept up in the crowd.

Mixing Up 'New Home' and 'New to You'

FHOG is for a new home that has never been sold or lived in. Many properties that feel 'newish' don't qualify.

Thinking You Can 'Sort It Out Later'

Grant and duty applications rely on what you declare at the time, and there are notification obligations if you don't meet conditions.

The cleanest path is always to match your declarations to your real plan, and document any service based reasons that affect your occupancy.

A Practical Checklist Before You Sign Anything in Victoria

Here's the pre contract routine we'd suggest for most ADF first home buyers:

Confirm your first home status for every relevant person (including a spouse or partner, even if they're not going on the loan or title).
Check the dutiable value against the Victorian thresholds for duty savings, and confirm the property type (established, new, vacant land, apartment, townhouse).
Work out your occupancy plan honestly: when could you move in, for how long, and what happens if you're posted away.
If you're relying on the Defence residency exemption, make sure you meet the conditions (including Victorian electoral enrolment), and keep evidence of duty or leave status.
Line up your Defence benefits early (DHOAS, HPAS, HPSEA), because they can affect lender choice, borrowing power, and timing.
Get the Section 32 and contract reviewed before you sign or bid.

Need a Hand Before You Commit?

Buying your first home while serving can be done, and done well. The difference is usually planning: matching the right concession to the right purchase, and making sure your contract reflects your reality, not a perfect world where postings never change.

If you're looking at a property in Melbourne or regional Victoria and want peace of mind before you sign, contact Pearson Chambers Conveyancing. We'll guide you through the next steps and provide a complimentary Section 32 contract review.

Email: contact@pearsonchambers.com.au