Lesson 1 of 3
The four schemes explained
What each one gives you, in plain English, with the catch stated up front.
9 minute read
There are four things a Victorian first home buyer might be entitled to. They stack in some combinations and conflict in others, and the eligibility rules don't line up with each other — which is why so many people give up trying to work it out.
1. The First Home Owner Grant
A cash grant, paid at settlement. The catch is that it's for brand new homes only — a house-and-land build, a newly constructed home nobody has lived in, or in some cases an off-the-plan apartment. If you're buying an established home, this one isn't available to you no matter your income. There's no income test, but there is a property value cap.
2. Stamp duty exemption and concession
Not a grant — a tax you don't have to pay. Victorian first home buyers pay no stamp duty under a threshold, and a sliding reduced amount in a band above it. This is often worth more than the grant, applies to established homes as well as new ones, and requires nothing more than being a first home buyer who'll live in the property.
3. The First Home Guarantee
The government guarantees the gap between your 5% deposit and the 20% a lender would otherwise want, so you avoid mortgage insurance. No income cap and unlimited places from 2026. There's a property price cap, and you apply through a participating lender rather than to the government.
4. Help to Buy
Shared equity. The government contributes a share of the purchase price — a larger share for new homes than existing ones — and owns that share until you buy them out or sell. You need a very small deposit and borrow much less, so your repayments drop substantially. The catch is real: you don't own the whole home, and when it appreciates, so does the government's share.
Grant & scheme checker calculatorAnswer six questions and see which of the four are yours.Can you use more than one?
Often, yes. The stamp duty concession and the First Home Guarantee combine happily. The grant can sit alongside both if you're buying new. Help to Buy is the one that changes the picture most, because it reduces the price you're financing and can therefore change your stamp duty position too.
The short version
- The grant is for new homes only; the stamp duty concession isn't.
- The stamp duty saving is often larger than the grant.
- The First Home Guarantee removes mortgage insurance at a 5% deposit.
- Help to Buy means the government owns part of your home.
Quick check
You're buying an established home in Melbourne. Which scheme is definitely NOT available?
Your next step
Run the eligibility checker with your real numbers, then read the conditions on each scheme you qualify for.