First Home Buyers in Victoria 2025: Grants, Duty Relief & the New 5% Deposit Pathway Explained

Buying your first home is one of life’s biggest milestones — but it can also feel overwhelming. Between deposit hurdles, changing government policies, and all the paperwork, it’s easy to miss opportunities that could save you thousands.

The good news? Both the Australian Government and the Victorian State Government have introduced or expanded several initiatives to help first home buyers enter the market sooner. And with the right mortgage broker by your side, you can make sense of it all and find a deal that truly fits your situation.

first home buyer

National Support: The New Federal 5% Deposit Scheme (Updated 2025)

The Australian Government’s Home Guarantee Scheme has undergone major updates — making it easier than ever for first home buyers to get into the market.

Here’s what’s new from 1 October 2025:

✅ Income caps removed: The previous limits ($125,000 for singles / $200,000 for couples) are gone — meaning more Australians can qualify.
✅ Unlimited places: There are no longer annual quotas. Anyone who meets the criteria can apply.
✅ Higher property price caps: Thresholds have increased across most regions, with the Victorian metro cap now up to $950,000.
✅ Just 5% deposit required: The government guarantees up to 15% of the loan, helping buyers avoid costly Lenders’ Mortgage Insurance (LMI).

What it means:
You can now buy a home with a smaller deposit, skip LMI, and access a broader range of lenders. While this opens doors for many, it’s still important to ensure the loan remains affordable — your broker can model repayments and help you plan for future rate changes.

Victorian Support: First Home Buyer Incentives & Duty Relief

For those buying in Victoria, the State Revenue Office (SRO) offers several programs that can make your first purchase more affordable.

  1. First Home Owner Grant (FHOG)

The FHOG is a one-off payment designed to help first home buyers build or purchase a new home.

  • Applies to homes valued up to $750,000
  • Must be your principal place of residence for at least 12 continuous months
  • You must not have previously owned property in Australia
  • Applications are typically lodged by your lender or conveyancer

Visit sro.vic.gov.au/first-home-owner-grant for full eligibility details.

  1. First Home Buyer Duty Exemption or Concession

Eligible first home buyers may receive a stamp duty exemption or concession, saving thousands at settlement.

  • Applies to both new and established homes
  • Available for properties up to certain dutiable value thresholds
  • You must live in the property as your principal place of residence

Your solicitor or conveyancer will usually claim this on your behalf when the transfer is assessed by the SRO.

Learn more at sro.vic.gov.au/land-transfer-duty/first-home-buyer-duty-exemption-or-concession.

Combining the Federal & State Benefits

When used together, these schemes can dramatically reduce upfront costs and make home ownership achievable sooner.

A typical First Home Buyer Package might look like this:

  1. 5% Deposit + Government Guarantee
    • Enter the market sooner without paying Lenders’ Mortgage Insurance
    • Expanded property price caps mean more choice across Melbourne and regional areas
  2. First Home Owner Grant (FHOG)
    • If buying or building a new property under $750,000, you could receive the one-off grant
  3. Stamp Duty Exemption or Concession
    • Depending on the purchase price, you may pay reduced or no stamp duty at all

Together, these incentives can make a difference of tens of thousands of dollars when purchasing your first home.

Why Use a Mortgage Broker?

With dozens of grants, concessions, and lenders’ policies to navigate, having an experienced mortgage broker in your corner can save you time, money, and stress.

Here’s why:

✅ Access to more lenders and products: Brokers work with multiple banks and lenders, ensuring you get real choice — not just one bank’s limited offering.
✅ Expert knowledge of grants & eligibility: A good broker knows exactly which government supports you qualify for and helps you package them correctly.
✅ Time and stress savings: Brokers manage the paperwork, negotiate with lenders, and guide you from pre-approval to settlement.
✅ Tailored advice: Your broker helps you avoid over-borrowing and ensures your home loan fits your budget and lifestyle.
✅ Ongoing support: Long after settlement, your broker can help you review your rate and ensure your loan remains competitive.

Put simply, using a mortgage broker is the smart way to go — especially for first home buyers navigating the system for the first time.

Quick Checklist for First Home Buyers

Before you start house-hunting, make sure you:

  1. Confirm your eligibility for both federal and state incentives
  2. Work out your budget and how much deposit you need
  3. Get pre-approval from your broker so you can make confident offers
  4. Check property price caps and suburb eligibility
  5. Understand the ongoing costs — not just the purchase price
  6. Lean on your broker for guidance every step of the way

Final Thoughts

Buying your first home doesn’t have to be overwhelming. With the expanded 5% deposit scheme, the Victorian First Home Owner Grant, and stamp duty exemptions or concessions, there’s never been a better time to take that first step toward home ownership.

The key is getting expert advice early — before you start making offers or signing contracts. A mortgage broker can help you understand your borrowing capacity, unlock the right combination of benefits, and secure a loan that truly works for you.

Ready to explore your options?

If you’re thinking about buying your first home in Brunswick, Carlton or surrounding suburbs, get in touch today for a friendly chat about your goals and eligibility.

Ashley Blyth
Principal Mortgage Broker | PPM Finance
📍 Sydney Road, Brunswick VIC
📞 0422 337 328 | ✉️ ashley@ppmfinance.com.au
🌐 ppmfinance.com.au

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