Purchasing a new home in Victoria can feel overwhelming - especially when navigating the many government schemes designed to help buyers enter the market sooner. To make things easier, we’ve summarised and compared the major grants and assistance programs currently available to Victorian buyers.
Whether you’re saving your first deposit, exploring ways to reduce your loan repayments, or looking to maximise tax advantages, there’s likely a scheme that can support your journey to home ownership.
First Home Owner Grant (FHOG)
Best for: All eligible first-home buyers building or buying a brand new home!
The Victorian First Home Owner Grant offers $10,000 towards the construction or purchase of a new home valued up to $750,000 (excluding land).
Key benefits
- Boosts your deposit instantly
- Applies specifically to brand new homes (the home must not have been previously lived in or rented)
- Can be combined with the 5% Deposit Scheme or First Home Super Saver Scheme
Considerations
- Strict eligibility criteria apply
- Property price cap excludes some higher-value build
5% Deposit Scheme (formerly First Home Guarantee)
Best for: Buyers with a good income but minimal deposit savings, who want full ownership.
Eligible buyers can purchase with a 5% deposit, while the Federal Government guarantees up to 15%, helping avoid Lenders Mortgage Insurance (LMI).
Key benefits
- Only 5% deposit required
- No LMI
- You retain 100% ownership
- Not just for first home buyers - you can qualify if you have not owned a home, unit, or land in Australia in the past 10 years.
- Available across major lenders
Considerations
- Higher LVR (loan-to-value ratio) means higher monthly repayments
- Property price caps apply and vary by location
Help to Buy
Best for: Buyers struggling to build a large enough deposit, who would also benefit from lower ongoing repayments.
The Federal Government may contribute up to 40% for new homes in exchange for an equity stake, reducing both deposit size and loan repayments for the buyer.
Key benefits
- Very small deposit needed (as low as 2%)
- Reduced loan amount may mean lower repayments
- No LMI
- Government equity is interest‑free
Considerations
- Government owns a share of your home
- You must buy back that share over time or when selling
- Income caps and property caps apply
- Limited spots available each year
First Home Super Saver Scheme (FHSSS)
Best for: Buyers saving over a 2–5 year horizon.
This scheme, administered by the Australian Tax Office, allows voluntary super contributions (up to $15,000 per year) to be withdrawn later (up to $50,000 total), and put toward your deposit - benefiting from concessional tax treatment in the meantime.
Key benefits
- Significant tax advantages can help your savings grow faster
- A practical long‑term deposit‑building strategy
- Can be used alongside other schemes
- You retain full ownership of your home
Considerations
- Does not reduce house prices or repayments
- Funds are locked in super until released
- Withdrawals are taxed (at concessional rates)
- Subject to annual and lifetime contribution caps
- Fluctuations in the superannuation market
At a glance: scheme comparison
Scheme/grant | Deposit needed | Ownership | Best advantage | Main drawback |
Victorian First Home Owner Grant (FHOG) | Varies | Full | $10,000 boost for new builds Can be used with 5% Deposit Scheme or FHSSS | Property value cap |
5% Deposit Scheme | 5% | Full | No LMI and a lower deposit Can be used with FHOG | Higher loan repayments |
Help to Buy | As low as 2% | Shared | Lower repayments Smallest deposit | Government equity stake |
First Home Super Saver Scheme (FHSSS) | Varies | Full | Tax benefits Can be used with other schemes | Money locked in super |
First home buyer duty discounts
Through this Victorian Government initiative, many first home buyers can save a significant amount on their land transfer duty (commonly known as stamp duty), when they purchase a new or established home, or vacant land to build on.
Discounts are offered as either an exemption or concession, and are based on the dutiable value of the property you purchase. The savings can be in the tens of thousands of dollars!
- Up to $600,000, you pay no duty
- From $600,001 to $750,000, you pay a reduced amount of duty
Which scheme is right for you?
Every buyer’s financial situation and timeframe is different. Some buyers benefit most from the low deposit of Help to Buy, while others prioritise full ownership via the 5% Deposit Scheme. Future‑focused savers may prefer the tax advantages of the FHSSS, while the FHOG offers a welcome boost for those building a new home.
If you’re not sure which of these are best for your individual circumstances, our finance partners at Mortgage Domayne can help guide you through the options and connect you with partners who specialise in financing new homes. They’ve already created this handy summary of the main grants and schemes in Victoria.
Their team can help you:
- Assess which grants and schemes you are eligible for
- Complete a finance health check to evaluate your borrowing capacity
- Understand how a construction loan differs to a regular home loan
- Compare the best lending products tied to government schemes
- Get pre‑approval and ensure settlement runs smoothly
- Structure your loan to reduce repayment time and total interest
Government grants and schemes can open the door to home ownership when it might otherwise feel beyond reach. Chat to one of our expert new home consultants at a Henley display centre near you, or get started with a free finance health check from Mortgage Domayne today.
