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If you have been house hunting between Saturday sport and a Brunswick brunch, you already know the Melbourne market asks a lot of you. Auctions are loud, price guides are coy, and every second person at the open seems to be a cash buyer from somewhere sunnier. The good news, though, is that Victoria and the Commonwealth still put real money and real savings on the table for first timers. The trick is knowing which support belongs to you, which ones you can stack, and how to line up the timing.
Below is a practical, Melbourne focused guide to the main schemes, accurate as at 13 October 2025. I have included the latest thresholds and policy updates, plus local examples so you can see how the pieces fit.
Victorian First Home Buyer Schemes: Quick Overview
Land Transfer Duty Relief (Stamp Duty Exemption)
Victoria offers no stamp duty up to $600,000, and a sliding concession from $600,001 to $750,000, for eligible first home buyers purchasing a principal place of residence. This applies to new or established homes, and even vacant land if you will build your first home on it. You must be an Australian citizen or permanent resident, at least 18, and you need to live in the property for 12 continuous months within 12 months of settlement. Defence Force members have a residency carve out.
First Home Owner Grant (FHOG) Victoria
If you buy or build a new home valued up to $750,000, the Victorian FHOG pays $10,000. Established homes are not eligible.
Temporary Off the Plan Duty Concession
On top of regular concessions, the State has a temporary off the plan stamp duty concession for apartments, townhouses and similar. It was extended and now runs to 20 October 2026. For eligible contracts, duty is calculated on the land and partially completed construction at contract date, which can cut tens of thousands from the bill.
Victorian Homebuyer Fund Status
The shared equity Homebuyer Fund is closed to new participants. Existing participants continue under their agreements.
That is the Victorian layer. Now add the Commonwealth support that most Melbourne buyers actually secure through their lender.
Commonwealth First Home Buyer Schemes for Melbourne
Home Guarantee Scheme (HGS): Buy With 5% Deposit, No LMI
From 1 October 2025, the HGS has been expanded in three important ways:
Unlimited places: no quota, so you are not racing the clock.
No income caps: higher earners can use it.
Higher property price caps, including $950,000 for Melbourne and Geelong (regional centre). In the rest of Victoria, the cap is $650,000. You still apply through a participating lender, and you must live in the property.
The HGS also simplifies joint applications. It explicitly allows partners, friends, siblings and other family members to buy together under the guarantees.
Can You Stack HGS With Victorian Grants?
A common question is whether you can combine the HGS with state support. Yes: Housing Australia confirms you can use the HGS with other programmes like the FHOG and stamp duty concessions, subject to each programme's own rules.
Why Melbourne buyers care: avoiding Lenders Mortgage Insurance with just a five per cent deposit can mean a five figure saving and, just as importantly, it can bring your purchase forward by many months.
First Home Super Saver Scheme (FHSS)
The FHSS lets you save up to $15,000 per year and $50,000 in total of voluntary super contributions, then withdraw those savings (plus a deemed earnings amount) to use toward your first home deposit. Couples, friends or siblings can each withdraw their own FHSS savings for the same purchase.
Many buyers use the FHSS alongside the HGS and Victorian concessions, because they address different parts of the deposit challenge: FHSS helps you save more efficiently; HGS helps you borrow with a smaller deposit and no LMI; Victorian concessions reduce up front tax.
Help to Buy: Federal Shared Equity Scheme
The Commonwealth's Help to Buy programme has been legislated at the federal level and is being readied for rollout, with Victoria passing enabling legislation. The State Revenue Office has flagged that Victorians will soon be able to access it. Under the legislation, the Commonwealth contributes an equity stake to reduce your mortgage and deposit burden. Keep an eye on the operational start and lender panels as the scheme is implemented.
Stacking First Home Buyer Grants and Concessions
Can You Stack These Supports?
Short answer, often yes.
HGS + FHOG + Victorian duty exemption/concession: common for buyers of a new townhouse or apartment under the relevant price caps. Housing Australia expressly allows stacking with state grants and concessions.
HGS + FHSS: also common. Save inside super, then use HGS to avoid LMI with a smaller on hand deposit. The FHSS settings set the $15,000 per year and $50,000 total that you can withdraw.
Off the plan duty concession + first home buyer duty concession: possible where you meet the principal residence and value thresholds. The temporary concession to 20 October 2026 can further reduce your dutiable value.
Just remember that FHOG only applies to new homes, and first home duty relief has its own value thresholds and residency rules. If you are buying with a partner who is not a citizen or permanent resident, foreign purchaser additional duty can apply to their share.
Melbourne First Home Buyer Examples: Real Scenarios
Example A: Established Unit in Coburg, $635,000
You miss out on FHOG, because it is not new. You are still in play for stamp duty relief on a sliding scale between $600,001 and $750,000, because Coburg will be your principal home. If you use the HGS, you could purchase with a five per cent deposit and no LMI, subject to lender approval.
Example B: New Townhouse in Sunshine, $730,000
Here you may combine FHOG ($10,000) with the first home duty concession and the HGS (Melbourne cap $950,000), provided you plan to live there and meet each scheme's criteria. If it is an off the plan contract, the temporary concession to 20 October 2026 could reduce the dutiable value further.
Example C: Off the Plan Apartment in Southbank, $680,000
Duty may be reduced because the dutiable value is calculated on the land and partly completed construction at contract date. If it is your first home and you move in, first home duty relief also plugs in, plus the HGS if needed. Timing matters here; your conveyancer should line up the concessions in the paperwork so you do not leave money on the table.
Example D: Vacant Land in Clyde North, Then Build
You can claim first home duty relief on vacant land when you intend to build your first home. Residency timing differs slightly: you must move in by the earlier of 12 months from the occupancy certificate or 36 months from settlement. If the completed home is new under $750,000, FHOG may also apply.
First Home Buyer Eligibility Requirements
Common Eligibility Issues That Trip People Up
Citizenship and age: Victoria requires buyers to be natural persons, at least 18, and citizens or permanent residents for first home duty relief. Similar citizenship or permanent resident rules apply in federal programmes.
Live in requirement: for Victorian relief, at least one purchaser must live in the home for 12 continuous months within 12 months of settlement. Defence Force buyers are exempt from the occupancy rule.
New versus established: FHOG is strictly for new homes up to $750,000. Established places can still get duty relief, but not the grant.
Price caps: HGS price caps in Victoria are $950,000 for Melbourne and Geelong, and $650,000 in other areas. Check your lender's postcode tables.
Buying with friends or family: joint applicants under the HGS can be friends, siblings or other family members. Make sure your co ownership agreement covers contributions, repairs and exit plans.
Foreign purchaser additional duty: if one of you is not a citizen or permanent resident, factor in the surcharge on their share.
First Home Buyer Timeline: Step by Step Process
Timing and Order of Operations
In Melbourne, the order in which you line things up matters almost as much as the schemes themselves. A simple sequence that works for many first timers:
Step 1: Budget and Borrowing Window
Talk to a lender or broker about the HGS and your deposit path. If you expect to use FHSS, start voluntary super contributions early because there are annual caps and a $50,000 release limit.
Step 2: Shortlist and Structure
If you are chasing a new build under $750,000, the FHOG can be part of your plan. For off the plan contracts before 20 October 2026, ask your conveyancer and the developer to provide the construction cost breakdown needed for the temporary concession calculations.
Step 3: Pre Approval and the HGS
Participating lenders lodge the HGS application with your loan. Unlimited places from 1 October 2025 reduce the anxiety of "missing the window", but you still need to meet lender credit policies.
Step 4: Contract Review, Then Claims
Before you sign a contract of sale, get a Section 32 vendor statement review and make sure your eligibility evidence is ready for duty relief and, if relevant, FHOG. The State Revenue Office's pages spell out residency timing and documents, which we match in your contract and settlement checklist.
Required Documentation for First Home Buyer Schemes
What Lenders, the SRO and Housing Australia Will Typically Expect
- Proof of citizenship or permanent residency for duty relief, and for federal schemes
- Evidence that you intend to occupy the property as your principal home
- For off the plan concessions, a schedule of construction costs and the vendor's duty forms
- For FHSS, confirmation from the ATO of your release amount and timing. The headline caps are $15,000 per year and $50,000 total
- For the HGS, a participating lender and a property within the Victorian price caps
Melbourne First Home Buyer Tips: Local Insights
Local Tips From Day to Day Melbourne Conveyancing
Think transport first. If a new development sits on a tram corridor or close to a train line, the off the plan concession plus future rental demand (should you ever move and lease it) can support long term value. The State extended the temporary concession to October 2026, which helps current off the plan stock get up.
Auction timing. Duty relief is decided by the contract date, not the day you first inspected. If your budget hovers around $600,000, keep the stamp duty cliff in mind during bidding.
Co buying with friends. The HGS now recognises friends and siblings as joint applicants. Put a co ownership agreement in place before you fall in love with a terrace in Thornbury.
Defence households. If one of you is ADF, the occupancy rule flexibility can be a real stress reliever if postings shuffle your plans.
Homebuyer Fund is shut. Do not plan around it for 2025 purchases; look to HGS and, as it comes online, Help to Buy.
First Home Buyer FAQ: Common Questions Answered
Can I use the FHOG on a renovated terrace in Yarraville?
No. FHOG is for new homes only, including brand new builds and never occupied properties, up to $750,000.
If I buy with my sister under the HGS, does that hurt our duty concession?
No, provided you both meet the Victorian first home buyer rules and intend to live there. Friends and siblings can be joint applicants for the HGS.
What if I am just over the $600,000 mark?
Duty does not jump to full freight straight away. There is a sliding concession between $600,001 and $750,000 for first home buyers. We can model it for your exact price.
Can I mix FHSS savings with the HGS and FHOG?
Yes, they serve different purposes and commonly sit together. FHSS has the $15,000 per year and $50,000 total withdrawal caps.
Is Help to Buy available in Victoria today?
The federal framework is in place and Victoria has passed enabling legislation. The State Revenue Office says Victorians will soon be able to access the scheme, so watch for operational start and lender participation updates.
Your First Home Buyer Action Plan
- Get a borrowing map with a participating HGS lender or broker so you know whether a five per cent deposit and no LMI is on the table at your target price. Use $950,000 as the Melbourne and Geelong HGS cap, $650,000 for other Victorian areas.
- Decide new or established. New often unlocks FHOG; established can still enjoy duty relief.
- If off the plan, confirm your contract date before 20 October 2026 to capture the temporary concession if eligible.
- Start or check FHSS contributions if you want the tax advantages on your deposit savings, and track toward the $50,000 total.
- Get your Section 32 vetted and your duty or grant applications prepped early, so your settlement is smooth.
Expert First Home Buyer Conveyancing in Melbourne
Buying your first home in Melbourne can feel like jogging the Tan, uphill, in a headwind. With the right plan, it becomes a steady walk. If you want a calm, local voice in your corner, Pearson Chambers Conveyancing would love to help.