Every first home buyer in Victoria eventually runs into the same wall of unfamiliar terms: stamp duty, LMI, government guarantees, dutiable value, first-home buyer grants. None of it is complicated once it’s explained properly — but getting it wrong, or missing an entitlement you were eligible for, can cost you thousands of dollars.
This guide walks through exactly what a first home buyer in Victoria needs to know in 2026, from stamp duty savings through to the total cash you’ll actually need on settlement day.
First-Home Buyer Stamp Duty in Victoria
A first home buyer in Victoria may qualify for significant land transfer duty — commonly called stamp duty — savings. For an eligible first-home buyer purchasing a Victorian home with a dutiable value:
- Up to $600,000: no land transfer duty is payable.
- $600,001 to $750,000: a reduced amount of duty applies, tapering as the value increases.
- Above $750,000: this particular first-home buyer duty exemption or concession does not apply.
These benefits can apply to eligible purchases of established homes, new homes and vacant land intended for construction of your first home. For the full, current eligibility rules, see the State Revenue Office’s first home buyer duty exemption or concession page.
What About House-and-Land Purchases?
For eligible vacant-land purchases, the dutiable value for this concession is based on the land itself and does not include the value of a separate building contract. This can make a real difference if you’re building rather than buying established — in some cases it brings a property that looks like it’s above the cap back under it. Individual circumstances matter, so confirm your entitlement with your conveyancer and the State Revenue Office before signing anything.
Victoria’s $10,000 First Home Owner Grant
A first home buyer in Victoria may also receive a $10,000 First Home Owner Grant when buying or building a qualifying new home. The property must generally:
- Be located in Victoria
- Be new (not previously lived in or sold as a residence)
- Meet the eligibility requirements
- Have a value of $750,000 or less
The grant does not apply to an ordinary established home — it’s specifically designed to support new housing supply.
Can First-Home Buyers Purchase With a 5% Deposit?
Eligible buyers potentially can. Under the Australian Government 5% Deposit Scheme, eligible first-home buyers can purchase with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI):
- No income caps
- No waiting list
- Unlimited places
- No LMI for eligible participants
Applicants must still satisfy eligibility requirements and the participating lender’s lending and credit criteria. Full details are available on the official Australian Government First Home Buyers website. For a worked example of what a 5% deposit actually looks like in dollar terms, see our companion guide on how much deposit you need to buy a house in Victoria.
What Is the Property Price Cap in Victoria?
| Location | Current Scheme Cap |
|---|---|
| Melbourne and Geelong | $950,000 |
| Other Victorian areas | $650,000 |
The exact cap depends on location, so confirm the relevant suburb or postcode using the Australian Government’s postcode tool and with your participating lender before you start house-hunting.
Your Deposit Isn’t Your Only Cost
Depending on the purchase, a first home buyer in Victoria may also need money for:
- Conveyancing or legal fees
- Building and pest inspections
- Loan-related expenses
- Settlement adjustments
- Insurance
- Moving expenses
- Repairs and furnishings
Try not to structure your purchase so tightly that you have no financial buffer left after settlement. If you’re weighing up suburbs, our guide to buying property in Melbourne’s north covers what to check beyond the purchase price, and our 2026 market update looks at current conditions across Melbourne more broadly.
Final Thoughts
Buying your first home may be more achievable than you initially think, particularly if you qualify for Victorian concessions or Australian Government assistance. However, eligibility is different for every buyer, and the rules around stamp duty, grants and deposit schemes can change. Arrange your finances first, understand the total costs and obtain appropriate financial and legal advice before signing a contract.
Looking for your first home? Speak with Vision & Co Real Estate about properties currently available and recent sales in the area.
General information only. Information is current as at 20 August 2026. Government schemes, thresholds and eligibility requirements can change. Buyers should obtain independent financial, legal and taxation advice.
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