Stamp Duty Concession
Typically, if you buy a property, you’ll pay stamp duty (a tax levied on property purchases and documents). But if you buy a property valued at $600,000 or less in Victoria, you won’t have to pay stamp duty at all — thanks to the current stamp duty concessions available to first homeowners.
First Home Guarantee
The Federal Government guarantees up to 15% of your deposit if you are eligible — meaning you may only have to pay a 5% deposit to purchase your first home. While there are limits depending on the value of your property, this can be an extremely useful incentive for first home buyers and drastically reduce the initial cost of homeownership.
First Home Buyers Super Saver Scheme
This VIC property incentive enables you to save money for your superannuation fund more quickly — with contributions before (concessional) or after (non-concessional) tax. The scheme means you can withdraw up to $15,000 from your super fund in any one year.
The Victorian Homebuyer Fund is a shared equity scheme — in which the state government contributes up to 25% of a property purchase for eligible first home buyers. The fund is applicable if you have a 5% deposit on your new home. It can reduce your overall mortgage and help you avoid paying Lender’s Mortgage Insurance.
These 2023 VIC property incentives are designed to make buying and building property more accessible going forward, not just for those with lots of disposable income.
How to Apply for the First Home Owner Grant
The bank or lender providing your loan will usually lodge your FHOG application for you. However, you’ll have to do your part, too — you’ll need to check and double-check all your finances, documentation, and contracts. Here’s how you can prepare:
- Review your eligibility and ensure you meet the requirements for the grant.
- Prepare documentation proving that your property is new and hasn’t been previously occupied or sold.
- Prepare identification and financial documents to prove your identity, income, and savings (for you as well as anyone else on the application form, such as a partner or spouse).
- Confirm that you have a signed copy of the official contract of sale — or contract to build — for your new property.
- Make plans to live in the new property for 12 months as your Permanent Place of Residence.
Following these steps can help ensure you successfully apply for the First Home Owner Grant.
Maximising First Home Owner Grants in Victoria
Many of the incentives and grants currently available for first homeowners in Victoria are extremely useful — however, they can also often be complex, with rigorous requirements. But with the correct information and professional guidance, the Victorian Government’s incentives can enable you to own your first home and ease your financial burdens.
Remember: applying for the First Home Owner Grant and other VIC first home owner benefits is best accompanied by consulting the help and guidance of a professional mortgage broker who knows the ins and outs of the property market and stays up to date with current grants, incentives, concessions, and trends.
We hope this guide to the Victorian FHOG has helped you along your journey to homeownership. Lendstreet is a team of knowledgeable mortgage brokers in Melbourne and Sydney. We understand how difficult homeownership can be, which is why we use our intricate understanding of the property market in Victoria and Australia to help first homeowners find the best loan terms possible. Whether you’re looking into homeownership grants in NSW or Victoria, we’re here to enable you to make the most informed decisions that will help you on your way to your new home.