By James Gregors

Buying your first home in Victoria in 2026 comes with more opportunities, and more fine print, than ever before. As time has passed, the government has expanded multiple first home buyer schemes, lenders have tightened and relaxed policies in equal measure. Meanwhile, new incentives like Help to Buy Australia have reshaped what a realistic deposit looks like.  

But while the support is generous, the rules are not always intuitive and there are requirements, eligibility restrictions and conditions that aren’t widely discussed. From stamp duty exemptions to deposit restrictions many buyers aren’t aware of, understanding how these incentives actually work in practice is important.

Presented by The Property Education Company, this guide breaks down the major home buyer incentives available in Victoria, including the First Home Super Saver Scheme, the 5% Deposit Scheme, and Help to Buy Australia. It covers the benefits and drawbacks of each scheme, plus eligibility rules and the all-important stamp duty question.

Please note: None of the info in this guide is personalised advice.

First home buyer grants & schemes:

In short:

• You may qualify for multiple government incentives, but not all schemes work together, and not everyone is eligible, so strategy matters.
• First Home Super Saver Scheme (FHSSS): This strategy is designed to help first home buyers save for their deposit using pre-tax contributions inside super.
• 5% Deposit Scheme: Buy with a 5% deposit and pay no lender’s mortgage insurance (LMI) (for eligible buyers – conditions apply).
• Help to Buy Australia: A shared-equity scheme where the government co-buys up to 40% of your home (for eligible buyers – conditions apply).
• Stamp duty exemptions and concessions apply for Victorian first home buyers under certain price thresholds.

Want to get started, right now? A broker from The Property Education Company can help you understand eligibility, navigate all the options and build the right strategy for your circumstances. Contact us to book your first chat.

Understanding Your 2026 First Home Buyer Options

1. First Home Super Saver Scheme (FHSSS) 

The First Home Super Saver Scheme is a tax-effective way to save for your deposit. It still involves your own money, but it can shorten the savings process somewhat.

How it works

• Potentially faster savings: Reduced tax = more money going toward your deposit.
• Disciplined environment: Money inside super is harder to access on a whim.
• Eligibility: Two buyers can each withdraw up to $50,000.

Challenges of the FHSSS

• Process timing matters: Release applications must be lodged before signing your contract.
• Not instant: Withdrawal processing times can affect settlement dates.
• Contribution limits apply.

This setup may be helpful for first home buyers who are early in their journey and want a boosted, tax-efficient savings strategy.

2. The 5% Deposit Scheme (First Home Guarantee)

Often called the 5% Deposit Scheme, this initiative allows eligible buyers to purchase a home with as little as 5% deposit, without paying Lenders Mortgage Insurance (LMI).

How it works

The government guarantees up to 15% of the loan, so you avoid LMI, potentially saving tens of thousands of dollars.

FHG eligibility basics

• You must be a first home buyer (with some exceptions).
• Price caps apply based on suburb and region (in Melbourne, the cap is $950,000, while in other parts of Victoria it is $650,000).
• The property must be owner-occupied
  

Further conditions may also apply, so contact us for an in-depth explanation of your eligibility.

Note: Only a limited number of lenders participate each year because the paperwork is extensive and requires specific internal processes.

Benefits of this first home buyer scheme:

• Buy sooner: Avoid waiting until you reach a full 20% deposit.
• Save money: Skipping LMI is a major cost-saving.
• Stronger borrowing ability: This scheme works well for buyers with solid incomes but limited savings.

Drawbacks of the FHG

• You must use most of your savings to access this scheme (scroll down to read more on this subject)
• Pricier regional postcodes may face lender restrictions.
• Limited lender availability and strict policy interpretations.
• You have to live in the property; it can’t be an investment until you owe 80% or less on your loan

The First Home Guarantee is suitable for:

Buyers who have enough savings for at least a 5% deposit (or 2% if you are a single parent), want to avoid LMI, and meet income and property price caps.

Want to know if this is an option for you? Call us on 0468 026 200 today.

3. Help to Buy Australia (Shared Equity Scheme)

The Help to Buy Australia program is a shared-equity model where the federal government effectively co-purchases part of your home. Again, conditions and eligibility requirements apply.

How it works

• The government can contribute up to 40% for a new home or up to 30% for an existing home.
• You contribute a much smaller deposit and borrow less.
  
• You do not pay interest on the government’s share.
• When you sell (or choose to buy out the government’s share), the Commonwealth receives the same percentage back.

Eligibility basics

• Income caps apply, you must have an annual taxable income at or below $100,000 for individual applicants or $160,000 for single parents and joint applicants
• You must be an Australian citizen.
• Property value caps apply per region.
  
• You need a minimum deposit (often around 2%).
• The home must be owner-occupied.

Benefits of the Help to Buy Scheme

• Significantly reduced mortgage repayments.
  
• Much lower deposit required, helping buyers enter the market sooner.
• The Government’s share reduces your loan size and total interest.
• Stamp duty concessions still apply if you’re a first home buyer
• Buy a newly built or existing home

Drawbacks

• You give up part of your equity, meaning your capital growth is shared.
  
• There are limited slots and strong demand.
• You must meet property and income caps, which may restrict the location you buy in.

Suitable for:

Buyers struggling with deposit size or borrowing capacity who are comfortable sharing equity in exchange for lower repayments. Contact The Property Education Company to explore this option.

Do First Home Buyers pay stamp duty in Victoria?

Stamp duty is a government tax you pay on certain legal or financial transactions. In property terms, it’s the one-off tax charged when you buy a home or land, calculated on the purchase price (or market value) and paid to your state/territory revenue office.

Stamp duty exemptions apply to first home buyers who are purchasing a residential property valued up to $600,000.

The discounted duty applies to homes valued between $600,001 and $750,000, tapering as the price increases.

These concessions apply whether you buy established or new property, and whether you access schemes like FHSSS or the 5% Deposit Scheme.

Read more:  First home buyer guide: How to be purchase ready

What if I already have a large deposit to buy my first home?

This is a major point of confusion, and we often have to explain things to first home buyers.

Under the 5% Deposit Scheme and many participating lenders’ policies, you cannot simply hold back the majority of your savings while using the scheme purely to avoid LMI.

Lenders typically require you to use the majority of your available savings toward the purchase, and retain only a small buffer (often around $10,000) post-settlement.

This means that if you have $100,000 saved, you can’t decide to only put in $35,000 and keep $65,000 aside. Lenders expect you to use most of that $100,000 to reduce your borrowing.

The rationale is simple:

If you have the cash, the government should not be subsidising your risk with an LMI waiver.

This rule surprises many first home buyers. If you do have a large deposit for a residential property, we can chat about your options to move forward. Using it will reduce the overall cost of your loan because you will pay less interest over time. As a first-time buyer, you’ll also still have the advantage of a stamp duty exemption.

First Home Buyer Grant Frequently Asked Questions (FAQs)

Can I use more than one first home buyer incentive?

Sometimes, yes, but not all schemes can be stacked together. For example, you should be able to use FHSSS with the 5% Deposit Scheme, but Help to Buy often cannot be combined with other major incentives.

Is the First Home Owner Grant still available in Victoria?

Yes, but only for newly built homes that meet price and construction criteria. This grant is a $10,000 grant for eligible Australian first home buyers to purchase or build a new home. Key requirements include buying a property valued at up to $750,000 and that the home has not been previously lived in or sold as a residence.

Do I need genuine savings to buy my first home if I am using a government scheme?

If you are borrowing above 80% outside Australia’s first home buyer schemes, lenders may require evidence of three months’ genuine savings. Under the scheme, gift funds may be acceptable, depending on the lender.

Buying your first home: You don’t need to handle this alone

The first step to buy a house or apartment is understanding what’s possible.

The rest, from unlocking grants and structuring your deposit to choosing the right lender and avoiding costly missteps, is where expert guidance matters.

A broker from The Property Education Company will help you:

• Understand which home buyer incentives apply to your situation
• Coordinate grant applications and apply for the relevant schemes
  
• Strategise your deposit and borrowing power
• Select a lender and loan option that are matched to your long-term goals
• Avoid common first-home pitfalls that can delay or derail your purchase

Buying your first home is a big moment. We’ll help you complete the process with confidence. Reach out to The Property Education Company today.

About the author:

As an MFAA-certified finance broker, James Gregors has been helping people just like you to build their property portfolio for many years. He is especially dedicated to helping first time buyers experience the excitement of buying their first home.

James loves learning about property opportunities then sharing what he has learnt with his clients. He has a natural flair for figures, which makes him a whiz at working out the most advantageous borrowing opportunities.

Disclaimer: This advice is general in nature. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Licensing Statement: Credit Representative 365124) is authorised under Australian Credit Licence 389328.