Are You a First
Home Buyer in Melbourne?

If you are a First-time home buyer in Melbourne and don’t know where to start, then you have landed on the right page. Star Homeloans understand that the process of buying a first home in Melbourne can be challenging for individuals, but with us, it can be seamless and enjoyable. We can help you find out possible ways to save up for a deposit and the right loan and find out the perfect home for you.

Government Grants Available for First Home Buyers to Save Thousands

Did you know that you can save thousands by accessing government grants, exemptions, and incentives if you get the first time home buyers grant in Melbourne? Fortunately, Australians are given several government grants and schemes to minimise costs when they are about to buy a new home. The following are the main government grants that can be accessed by first-home buyers:

Buy Your First Home with Star Homeloans

Buying your first home can be an exciting journey, but it can also be complex and challenging at times. The Star Homeloans team would love to be a part of this journey with you and help you every step of the way. We will guide you through the process of saving an appropriate deposit, explain the first home buyer grant in Melbourne, and other types of government support available. Our team will also assist in matching you with the right home loan and celebrate with you when you sign on that dotted line.

Stamp Duty Exemptions

You are eligible for a stamp duty exemption if you buy a high-value asset, such as a property. If you are a first home buyer and buying a property under the appropriate price cap, then you can access a stamp duty exemption. Each state and territory has its own eligibility requirements. Most states follow the common eligibility criteria:
  1. You must be a permanent resident or an Australian citizen
  2. Your age must be 18 years
  3. You are required to move into the property within 12 months and reserve or live in the property as a principal land of residence for around 6-12 months
  4. Your income must fall under the state-specific threshold
  5. Before you move in, the property cannot be sold, transferred, leased, or given full ownership in any other way.

First Home Owners Grant in Melbourne

The first home owners grant is also called the first home buyers grant in Melbourne, and it was introduced on 1 July 2000. It is a national scheme supported by the territories and states and managed under their own legislation. The conditions to apply for this grant vary across states and territories.

The FHOG’s basic eligibility is the same for all Australians:

  1. You must be a permanent resident or an Australian citizen.
  2. Your age must be 18 years.
  3. You need to shift into the property within 12 months, and you must live there as your principal residence for around 6-12 months continuously.

You need to meet all of the above mentioned eligibility requirements to access the first home owner grant in Melbourne. As it can help you save more on your first home purchase. With this grant, first home buyers can get $10,000 in Victoria and this amount can vary in different states and territories of Australia.

Given below is a list of stamp duty exemptions specific to each state:

StateFirst Home Owners Grant on New Homes onlyStamp Duty RebateFirst Home Loan Deposit SchemeTotal of Grants Available
New South Wales$10,000Established Home: Stamp Duty of $31,000 Waived for property value of $800k
*Duty concession up to $1.0 million purchase.
Vacant Land: Stamp Duty waived for land value of $350k
*Duty concession up to $450k purchase
LMI waived for first home buyersUp to $70,000First Home Buyer Assistance scheme | Revenue NSW
Victoria$10,000Established Home: Stamp Duty of $31,000 Waived for property value of $600k
*Duty concession up to $750k purchase
LMI waived for first home buyersUp to $60,000First home buyer duty exemption, concession or reduction | State Revenue Office (sro.vic.gov.au)
Queensland$15,000*Stamp duty Waiver for properties up to$500k.
Vacant Land:Stamp Duty waived for land value of $250k
*Duty concession up to $399k purchase
LMI waived for first home buyersUp to $40,000Transfer duty concessions and exemptions | Homes and housing | Queensland Government (www.qld.gov.au)
Australian Capital CityNo grant, but concession scheme availableStamp Duty of Waived for property value of $1.0 million
*Duty concession up to $1.455 million purchase.
*Individual or combined should be less than $186,000 Vacant Land: Stamp Duty waived for land value of $423k
*Duty concession up to $500k purchase
LMI waived for first home buyersUp to $50,000Home buyer concession scheme (from 1 July 2019) | ACT Revenue Office - Website
Western Australia$10,000 *Location condition applies*Stamp Duty waived for properties valued up to $430k
*Duty concession up to $530k purchase.
Vacant Land: Stamp Duty waived for land value of $300k.
*Duty concession up to $400k purchase
LMI waived for first home buyersUp to $38,500
South Australia$15,000 *Property value up to $650k*Stamp Duty waived for properties valued up to $650k.
*Duty concession up to $700k purchase.
Vacan Land: Stamp Duty waived for land value of $400k
*Duty concession up to $450k purchase
LMI waived for first home buyersUp to $78,000https://www.revenuesa.sa.gov.au/first-home-owners-grant
Northern Territory$10,000Stamp duty concession for property value up to $525kLMI waived for first home buyersUp to $28,000Get stamp duty exemption on house and land packages | NT.GOV.AU
TasmaniaUp to $30,000Stamp Duty discount of 50% on established homes with a value of $600k or lessLMI waived for first home buyersUp to $59,500First home buyers of established homes duty concession | State Revenue Office Tasmania (sro.tas.gov.au)

Did You Know?

First Home Owner Grant Chart

Home Guarantee Scheme

A home guarantee scheme has been introduced to offer financial assistance to Australians that are in need. You could save thousands with no Lenders Mortgage Insurance (LMI). Under the home guarantee scheme, the following schemes are available to Australians:
A couple Smiling after geeting First home Owner grant in Melbourne

First Home Guarantee (FHBG)

For this scheme, singles and couples are eligible who meet income criteria as mentioned by the government. This scheme allows the eligible home buyer to buy a home with a 5% deposit without paying Lenders Mortgage Insurance (LMI). Under the FHBG, 35,000 places are available for eligible first home buyers from 1 July 2022 – 30 June 2023. The reason behind the first home guarantee scheme is to remove the necessity for a significant deposit and help home buyers by simplifying the process of buying their first home.

The following types of residential properties are eligible for this grant:

  1. An existing house, townhouse or apartment
  2. A house and land package
  3. Land and a separate contract to build a home
  4. An off-the-plan apartment or townhouse

The following are some conditions to be eligible for this grant:

  1. You must be an Australian Citizen
  2. An individual or couple (married / de facto)
  3. Earning up to $125,000 for individuals or $200,000 for couples
  4. Melbourne first home buyers scheme helps to those who have not previously owned, or had an interest in, a property in Australia
  5. Intending to be owner-occupiers of the purchased property

Single Parent Grant

The single parent home owner grant is for single parents who are first home buyers in Melbourne, and this scheme helps to reduce the pressure of buying a residential home. Under this scheme, the NHFIC will guarantee a part of your home loan so you can buy the home soon with a 2% deposit without paying Lenders Mortgage Insurance (LMI). Any guarantee of a home loan is for the maximum amount of 18% of the property value (assessed by your lender). This guarantee is not a deposit or cash payment for a home loan. From 1 July 2022 to 30 June 2025, 5,000 places are available each financial year for eligible single parents with dependents. The applicant can be either a First-time home buyer grant Melbourne or previous owners who don’t own a home currently.It includes:

  1. Any Australian freehold property interest.
  2. Any land lease in Australia.
  3. Any Australian corporate title interest in land.

The following conditions need to be met to be eligible for this grant:

  1. You must be an Australian Citizen
  2. Be a single parent with at least one dependent child
  3. A first home buyer or previous owner who does not currently own a home or interest in real property in Australia
  4. Intending to be owner-occupiers of the purchased property

The following are some eligible residential properties:

  1. An existing house, townhouse or apartment
  2. A house and land package
  3. Land and a separate contract to build a home
  4. An off-the-plan apartment or townhouse
Single Parent Smiling after getting First Home Owner Grant in Melbourne
couple signing and verifying the document for First home Owner grant Melbourne

Regional Home Guarantee (RHG)

The regional home guarantee was declared as a part of the Federal Budget 2022-23 to offer assistance for homeowners looking to buy a house in the regional area with a 5% deposit without paying Lenders Mortgage Insurance (LMI). When you are looking to buy a regional property, and then make sure its purchasing price is within the price caps. The best thing about this scheme is that no additional costs are associated with the scheme.The eligibility criteria:
  1. You must be a permanent resident or an Australian citizen.
  2. You must buy a newly constructed home, not an existing one.
  3. You must be a first home buyer or not previously owned a home within the last five years.
A girl discussing about first home owner grant in Melbourne on mobile phone

Are You Ready to Get Started?

Contact Us

You can reach us by giving us a call on 0490 054 115 or you can mail us at info@starhl.com.au.

Get Assistance

One of our sales assessment team members will guide you by providing you with the right information.

Meet a Loan Specialist

Discuss what you need, assess your borrowing capacity, confirm your Grant/scheme eligibilities and choose an appropriate home loan option.

Get Pre-Approval Quickly

Get your home loan pre-approval application done quickly, and you can submit your information through our online form.

Catch an Exciting Offer

Find your Dream Home: As you have received your pre-approval and you can start looking for your dream home.

FAQ

Basically, you’ll receive a $10,000 first home buyers grant in Melbourne if you buy or construct a new property in Victoria or Melbourne.

If you are a first home buyer, you may have access to one of the government schemes. The following schemes are available for first-home buyers:

  • First home guarantee
  • Family home guarantee
  • Regional first home buyer scheme
  • First home super saver scheme
  • First home owner grant

Well, eligibility criteria for different first home buyer schemes may vary from one state to another. For example, eligibility for a first home buyer grant in Melbourne will be different from FHOG in Sydney or other states. The most common conditional requirements are:

  • age must be 18 years
  • a permanent resident of Australia or carry an Australian citizenship

buying a home for the first time.

Usually, a 20% deposit is ideal as you don’t need to pay LMI. Furthermore, some government schemes may need you to have a 5% or 2% deposit, but it depends on different schemes. For details, you can ask Star Homeloans.

If the property value is below $600,000, first-home buyers in Melbourne or Victoria are not required to pay stamp duty. It means it is a saving of up to $31,000. You may still be able to save on stamp duty even if you pay between $600,000 and $750,000 for your first home. 

You need to apply for the FHOG at the same time as applying for a home loan. You can speak to Star Homeloans brokers to help you with the application. 

No. only one person can apply for FHOG. You also need to ensure that your spouse or partner has not received a grant anywhere in Australia previously, as it may be denied.

Still Confused? Ask Us