Established Home in Victoria: Which First-Home Benefits Apply?

Start with property type, not the grant headline

Victoria's $10,000 First Home Owner Grant (FHOG) applies to an eligible new home worth up to $750,000. An established home is not eligible, even if it is your first purchase. For an off-the-plan purchase, check the contract price against the grant threshold rather than assuming a duty deduction also reduces the grant value.

First-home buyer duty relief is a different benefit. Eligible buyers can receive an exemption at dutiable values up to $600,000 and a concession from $600,001 to $750,000. New and established homes can qualify. Dutiable value is generally the higher of the purchase price and market value, so an advertised price alone is not the final test.

Three hypothetical purchases: what changes?

These examples are not suburb medians, real client outcomes or approval estimates. They assume the stated price and dutiable value, and do not calculate every possible duty concession, surcharge or settlement cost.

• Established home at $590,000: no FHOG. If the dutiable value is also $590,000 and all conditions are met, first-home buyer duty exemption may apply. A 5% price deposit is $29,500, before other costs.
• Eligible new home at $700,000: the $10,000 FHOG may apply, and first-home buyer duty concession may apply if the dutiable value is $700,000. A 5% price deposit is $35,000; do not assume the grant is available when the contract deposit is due.
• Established Melbourne home at $800,000: no FHOG and no first-home buyer duty concession at an $800,000 dutiable value. The federal guarantee may still be worth checking against its separate location cap. A 5% price deposit is $40,000; duty and other costs remain additional.

The 5% Deposit Scheme is not another grant

The Australian Government 5% Deposit Scheme, formerly the Home Guarantee Scheme, has no income caps or place limits under the changes that began on 1 October 2025. Eligible first-home buyers can purchase with a minimum 5% deposit without LMI through a participating lender. This does not mean every applicant or property qualifies.

The published Victorian price caps are $950,000 for Melbourne and Geelong, and $650,000 elsewhere. Confirm the address category with the participating lender. Both purchase price and lender-assessed value need to meet the applicable cap. Do not apply the Melbourne cap to every Victorian property, or the scheme's no-income-cap rule to shared-equity programs.

Build the cash budget before signing

Allow for duty where payable, conveyancing, inspections, lender and registration fees, adjustments and an emergency reserve. Ask when a grant would be paid and how the lender will evidence your savings; a potential benefit is not necessarily cash available for an auction deposit.

Previous property ownership, your partner's history, citizenship or residency, and intended occupation can affect eligibility. Have the lender and conveyancer check the relevant rules before entering an unconditional contract. Scheme eligibility and the lender's affordability assessment remain separate.

• Is the dwelling genuinely new for FHOG purposes?
• What is the dutiable value, and which duty relief applies?
• Which guarantee cap applies to this address and valuation?
• What cash must be accessible at exchange and settlement?