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Though it can be discouraging to be a first home buyer in today’s market due to high property prices, you may be happy to know that there are a range of grants available to first home buyers to make the process a little bit easier.
In Victoria, there are three main assistance schemes in place to help bring you closer to your first home sooner than you may think. These include:
On this page, we will break down each of these grants and incentives, helping you better understand your financing options as a first home buyer in Victoria.
To qualify for the $10,000 first home owners grant in Victoria, you must:
Though there are further eligibility criteria, most first home buyers should be reassured by the ease of access to the FHOG.
Eligible first home buyers must ensure their intended property meets a few rules outlined by the Victorian State Revenue Office. These regulations generally refer to the property value and residential intentions of the buyer, including:
Moreover, there are also restrictions to ensure that the grant is being awarded solely for the purposes of supporting a residential property purchase. To be eligible for the first home owner grant in Victoria, you must ensure that you and your partner have not:
It's important to note that these eligibility restrictions apply to you and your spouse even if you are not applying for the FHOG together.
The application process is quite consistent throughout most states in Australia. In Victoria, the application process involves either applying directly to state authorities or through an approved agent, usually in the form of financial institutions or lenders.
Applying through an intermediary such as a lender is usually the most streamlined and convenient approach for most prospective homeowners.
When applying through this method, they’ll take care of the documentation and lodge the application form on your behalf. You will only need to provide minimal documentation and sign off on them.
If you opt for the direct route and choose to apply to the state revenue office yourself, you will need to compile the necessary supporting documentation.
Supporting documents that you will need for the application form include:
The online application process can be found on the Victorian SRO website. Just keep in mind that the application has to be lodged within 12 months of settlement or construction completion.
Like the first home owner grant, any Victorian residents purchasing their first home (subject to property value) can claim stamp duty concession. To qualify for stamp duty savings you must:
Unlike the FHOG, first home buyers can claim tax exemptions or reductions on stamp duty when purchasing both new or established property.
However, the dutiable value must be between $600,000 and $750,000. Although this may seem limiting, it can be especially beneficial when buying off the plan or building on vacant land, since minor adjustments can help adjust the value of the property.
The eligibility criteria for stamp duty concession is relatively straightforward and almost identical to the first home owners grant:
You can apply for a stamp duty refund for up to 5 years after it was paid, but the exemption amount will depend on when the property was purchased.
If your contract was signed prior to 1 July 2017, you will only be able to claim 50% of the stamp duty as a tax-deductible expense. Whereas, if your contract is dated after 1 July 2017, you will be able to claim a full stamp duty exemption.
Usually the application is taken care of by a conveyancer or solicitor during the conveyancing process. However, there is also an online application form available if you want to apply for a backdated purchase.
You will need to complete a digital duties form online and provide the necessary supporting documentation requested in the form.
If you need assistance calculating the land transfer duty payable on a property, be sure to use our stamp duty calculator to find out how much you could save.
If you're intending on dipping your toes into the property market for the first time, but you don't qualify for the aforementioned grants, don't fret. You may still be eligible for schemes made available to all first home buyers across Australia.
A national-level scheme that aims to aid the first home buying process by allowing you to save within your super fund. This scheme allows you to make voluntary concessional contributions to your super fund of up to $15,000 per year and $30,000 in total. From 1 July 2022 this amount will increase to $50,000. Eligibility criteria and further details can be found on the ATO website.
This is another federal government initiative (limited to 10,000 places) that allows first home buyers to put down their deposit earlier and with less paid upfront. Much like the FHLDS, the New Home Guarantee Scheme will guarantee a portion of your home loan, allowing first-home owners to put down as little as 5% without incurring LMI (lender's mortgage insurance).
Though the two are similar, the key difference is that the NHG can apply to those looking to build a new home and the FHLDS can apply to those purchasing an established or existing home. The purchase of a new home will be eligible for both schemes. Participating lenders for the NHG can also be found on the NHFIC website.
The Family Home Guarantee scheme aims to assist single parents with at least one dependent child with purchasing a family home, regardless of whether they are first home buyers or not. Again, this scheme aims to mitigate the need for LMI and will allow single parents to purchase a home with as little as a 2% deposit. 10,000 Family Home Guarantees will be made available between 1 July 2021 to 30 June 2025. Eligibility criteria have been broken down and listed on this fact sheet made available by the NHFIC.
For more information on government grants, check out our complete breakdown of all the eligibility requirements and details regarding Federal first home buyer incentives.
If you're not from Victoria and are curious about what first home buyer grants and incentives your State has to offer, you can check out our other state-specific guides below:
The Help to Buy scheme proposed by the Labor Government during their recent election campaign aims to cut the cost of homeownership by up to 40%.
Eligible home buyers will only need a deposit of 2% and the government may contribute a maximum of 40% of the price of a new home and up to 30% for the purchase of an established or existing home.
Home owners will be able to avoid paying the LMI premium and can opt to buy out the government's stake in the property (minimum of 5% at a time) at any time in the future when they are financially capable to do so.
This scheme will be made available to 10,000 individuals every financial year and anyone can apply for the scheme so long as their income does not exceed $90,000 per annum or $120,000 combined per annum for couples. The only other restriction is a specified price cap varying across different areas and states. Currently, the proposed property price cap for the capital city and regional Victoria is $850,000 and $550,000 for the rest of the state.
Joust is an online home loan marketplace that directly connects you to the most competitive rates on offer from the most reputable lenders and brokers in the industry. Through our streamlined process, we help you uncover the most suitable home loan products and lowest rates based on your individual profile and preferences.
Joust aims to provide first home buyers and existing home owners with the most competitive home loan rate through Australia’s only live home loan auction. In just 5 simple steps, you can put together your own profile and watch as lenders joust to compete for your home loan, providing you with rates that can't be found anywhere else.
So whilst you're taking advantage of the First Home Owner Grant and other incentives on offer, be sure to take advantage of personalised home loans that can potentially help you save thousands.
Although 20% is typically the industry benchmark for deposit requirements, there are various schemes available. For example, the New Home Guarantee and the Family Home Guarantee can help you secure your first home by putting down as little as 2% without paying Lenders Mortgage Insurance.
As long as you meet the eligibility requirements listed above, first home owners who purchase their property after 1 July 2017 can claim stamp duty exemption. If the property was purchased prior to that date, first-time buyers can still claim 50% of the stamp duty.
Though different grants and incentives will have slightly varied criteria, the majority take the following into account: You must be over 18 years of age and an Australian citizen or permanent resident. Both you and your spouse must not have owned or co-owned a property within Australia. In addition, the purchase of the property must not be on behalf of a company or trust and you must occupy the property for at least 12 months as your main place of residence.
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