By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026
Melbourne first home buyers in 2026 have arguably the strongest combination of grants and accessible pricing in Australia right now. The Victorian First Home Owner Grant of $10,000, the stamp duty exemption on the land component for new builds, the Federal 5% Deposit Scheme with zero LMI, and Help to Buy combine to make a $750,000 brand-new home in Melbourne’s north achievable with around $30,000 cash on hand. Compared to an established home of the same price requiring $109,000+, the gap is $79,000 — and that’s the difference between buying now and waiting another five years.
This guide covers every Victorian first home buyer grant available in 2026, the eligibility rules, and how the stack works on a real Melbourne new build across both corridors Low Deposit Homes operates in — North Melbourne (packages from $750K) and South East Melbourne (packages from $800K).
What Grants Are Available to Victorian First Home Buyers in 2026?
Victorian first home buyers have access to five programs:
- Victorian First Home Owner Grant (FHOG VIC) — $10,000 cash grant for new builds
- Stamp duty exemption on land — First home buyers building new pay zero stamp duty on the land component
- Federal 5% Deposit Scheme — 5% deposit, no LMI, no income caps, no place caps
- Federal Help to Buy — 2% deposit shared equity with government taking up to 40% of new build value
- First Home Super Saver Scheme (FHSSS) — Withdraw up to $50K individual / $100K couple from voluntary super
Note: Victoria does not have a state-level shared equity scheme equivalent to Queensland’s Boost to Buy. Victorian buyers rely on the Federal Help to Buy for that path.
How Much Is the Victorian First Home Owner Grant in 2026?
The Victorian FHOG in 2026 is $10,000 for new builds (off-the-plan or house and land packages) under the State Revenue Office contract price thresholds. The grant is paid into your deposit at settlement.
For the official source, see the State Revenue Office Victoria FHOG page.
The Victorian FHOG is smaller than the Queensland equivalent ($30,000), but Victoria delivers strong value in its growth corridors. North Melbourne FHOG-eligible packages from $750K capture the full grant stack; SE Melbourne packages from $800K capture the 5% Deposit Scheme and stamp duty exemption above the FHOG threshold.
How Does the Victorian Stamp Duty Exemption Work?
Victoria’s first home buyer stamp duty rules are slightly different to Queensland’s. For first home buyers building new:
- Land component: Stamp duty exemption typically applies for first home buyers, saving thousands
- Build component: No stamp duty (you don’t pay stamp duty on the construction contract)
- Established homes: Concessions apply for purchases under certain thresholds, but the savings are smaller than the new build exemption
For full criteria, see the State Revenue Office Victoria stamp duty page.
On a $750,000 new build in Melbourne’s north, the stamp duty saving versus an established home of the same value is approximately $40,000 — money that stays in your deposit pool rather than going to the state government. On an $800,000 SE Melbourne package, the stamp duty saving is approximately $43,000.
What Is the 5% Deposit Scheme and How Does It Work in Victoria?
The Federal 5% Deposit Scheme is the cornerstone of most Low Deposit Homes Victorian deals. It allows eligible first home buyers to purchase with a 5% deposit and zero Lenders Mortgage Insurance.
Victorian property caps:
- Melbourne and Geelong: $950,000
- Other VIC regional: $650,000
No income caps. No place caps. For most Melbourne first home buyers, this is the difference between waiting another decade to save 20% and being in their own home this year.
What About Help to Buy in Victoria?
Help to Buy is the Federal shared equity scheme. The government takes up to 40% ownership of your new build, reducing your effective loan to 58% of the property value. On a $750,000 property:
- Your deposit: 2% = $15,000
- Government share: 40% = $300,000
- Your loan: 58% = $435,000
- Weekly repayments at ~6% over 30 years: ~$650–$700/week
- Stamp duty: $0
- Total cash needed: ~$19,500
Help to Buy eligibility:
- Single buyer income under $100,000, or couple combined income under $160,000 (single parents with a dependent child are treated under the $160K bracket)
- Australian citizenship (not permanent residency)
- Property within Victorian price caps
- You must live in the property
- You cannot rent it out
Help to Buy and the 5% Deposit Scheme cannot be stacked.
How Do the Grants Stack? Two Real Victorian Examples
Example 1: North Melbourne — $750,000 new build (Craigieburn, Mickleham, Donnybrook):
| Item | Amount |
|---|---|
| Property price | $750,000 |
| 5% deposit | $37,500 |
| Stamp duty (land component) | $0 (FHB exemption) |
| LMI | $0 (5% Deposit Scheme) |
| Land transfer + legal + lender fees | ~$3,200 |
| Total funds required | ~$753,000 |
| Funds available: Savings | $30,000 |
| Funds available: FHOG | $10,000 |
| Funds available: Loan @ 95% LVR | $712,500 |
| Net cash on hand needed | ~$30,000 |
| Versus same property as established (no grants) | ~$109,000 |
| Saving | ~$79,000 |
Example 2: South East Melbourne — $800,000 new build (Pakenham, Cranbourne, Officer):
| Item | Amount |
|---|---|
| Property price | $800,000 |
| 5% deposit | $40,000 |
| Stamp duty (land component) | $0 (FHB exemption) |
| LMI | $0 (5% Deposit Scheme) |
| Land transfer + fees | ~$1,200 |
| Net cash on hand needed | ~$42,000 |
| Versus same property as established (no grants) | ~$115,000 |
| Saving | ~$73,000 |
Note: at $800K the contract is typically above the Victorian FHOG threshold, so the $10K grant doesn’t apply. The 5% Deposit Scheme and stamp duty exemption still deliver the bulk of the saving.
For Help to Buy applicants, the $750K North Melbourne property requires under $20,000 cash on hand at settlement — under $20K to own a brand-new four-bedroom home in a growing Melbourne corridor.
“The story in Melbourne right now is that the maths actually works for first home buyers. The prices in growth corridors are accessible — North Melbourne from $750K, South East from $800K — the grants stack cleanly, and the schemes deliver someone into a brand-new home for a deposit they thought was impossible.” — Chaice Paterson, founder of Low Deposit Homes
What Are the Best Melbourne Corridors for First Home Buyers?
Low Deposit Homes operates across three primary Melbourne corridors:
- North Melbourne (from $750K) — Craigieburn, Mickleham, Donnybrook, Kalkallo. Hume Freeway access, growing employment hubs, strongest value entry point and FHOG-eligible packages widely available.
- South East Melbourne (from $800K) — Pakenham, Cranbourne, Officer, Clyde. Established infrastructure, direct train line, mature family communities.
- West Melbourne (from $700K) — Werribee, Point Cook, Tarneit, Wyndham Vale, Melton. Beach access, diverse community, established schools.
Each corridor has different lifestyle tradeoffs. The right corridor depends on where you work, where your family is, and what kind of community fits.
Common Eligibility Traps in Victoria
The same traps recur across hundreds of discovery calls:
- Misunderstanding the stamp duty exemption. The exemption applies to the land component of a new build. Some buyers assume it applies to all property purchases — it doesn’t. Established homes face full or partial stamp duty depending on price.
- Help to Buy citizenship requirement. Help to Buy requires Australian citizenship, not permanent residency. Many PR holders are eligible for the 5% Deposit Scheme but not Help to Buy.
- Over the price cap. A $1,005,000 contract price disqualifies you from the 5% Deposit Scheme. Victorian packages typically come in well below $1M, but it’s worth verifying.
- Partner with prior ownership. If your partner owned property in the past 10 years, the FHOG and stamp duty exemption don’t apply to a joint purchase. Solo applications sometimes work.
How Do I Get Started?
Low Deposit Homes structures Victorian first home buyer purchases around the 5% Deposit Scheme stacked with the FHOG and stamp duty exemption — typically on $700K–$780K new builds in Melbourne growth corridors. We confirm eligibility, lock in pre-approval, and place you on a fixed-price turnkey package.
Frequently Asked Questions
What’s the difference between North Melbourne and South East Melbourne for first home buyers?
North Melbourne corridors (Craigieburn, Mickleham, Donnybrook) typically start at $750,000 for a 4-bedroom new build — qualifying for both the $10K FHOG and 5% Deposit Scheme. South East Melbourne (Pakenham, Cranbourne, Officer) packages typically start at $800,000 — typically above the FHOG threshold, but still capturing the 5% Deposit Scheme and stamp duty exemption. North Melbourne offers the lower entry; SE Melbourne offers more mature infrastructure. The right corridor depends on where you work and lifestyle preferences.
Can I get the Victorian FHOG on a $800,000 home?
The $10,000 FHOG applies to new builds under the State Revenue Office contract price thresholds. Some packages above $750K may still qualify depending on the specific threshold structure — confirm with your conveyancer and the SRO before signing. For most growth corridor packages in the $700K–$780K range, the FHOG applies cleanly.
Do I pay stamp duty on both the land and the build in Victoria?
No. For first home buyers building new in Victoria, stamp duty applies only to the land component, and the exemption typically eliminates that for eligible buyers. You don’t pay stamp duty on the construction contract. This makes new builds significantly cheaper upfront than established homes for VIC first home buyers.
What’s the Victorian stamp duty threshold for first home buyers?
Victorian stamp duty thresholds change periodically. For full first home buyer concessions, the property typically needs to be under a state-set value (currently around the $750K mark for full concession, with tapered concessions to a higher cap). Confirm current thresholds with the State Revenue Office or your conveyancer at the time of purchase.
Can I use Help to Buy to buy in Melbourne?
Yes. Help to Buy works in Melbourne within the Victorian metro cap of $950,000. For couples with combined household income under $160,000 and Australian citizenship, Help to Buy can reduce weekly mortgage repayments to around $650–$700/week on a $750K North Melbourne new build — competitive with or below local rental costs.
Ready to Find Out What You Qualify For?
Book a free 15-minute consultation with Low Deposit Homes — Book your free call | Call 1800 920 172
We’ve helped 1000+ families stack the grants correctly. Melbourne first home buyers in 2026 have arguably the strongest combination of grants and accessible pricing in Australia right now. The consultation is free.
Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All deposit calculations are indicative and based on general scenarios. Individual circumstances may vary. Government grant eligibility is subject to assessment by the relevant authority. This guide is for informational purposes and does not constitute financial advice.