With property prices climbing and lending rules tightening, Melbourne’s first-home buyers are looking for every possible advantage in 2025. Thankfully, there’s good news: government incentives like the first home buyers grant and First Home Guarantee are still available — but you need to know how to use them wisely.
This guide explains how to make the most of these schemes, who qualifies, and how first home buyer loans can be structured to maximise your benefits while avoiding costly mistakes.
What Is the First Home Buyers Grant in Victoria?
The First Home Owner Grant (FHOG) is a government incentive designed to help eligible buyers purchase a new home or build one from scratch. In Victoria, the grant is currently:
- $10,000 for new homes valued up to $750,000
- Only available for new builds or substantially renovated properties
- Must be the buyer’s first residential property
To qualify, you must:
- Be at least 18 years old
- Be an Australian citizen or permanent resident
- Not have owned property in Australia before
- Live in the property for at least 12 months after settlement
What’s New in 2025?
Government support for first-home buyers has expanded to include multiple schemes, not just the FHOG. These include:
1. First Home Guarantee
Buy a home with as little as 5% deposit and avoid paying Lenders Mortgage Insurance (LMI). Limited spots available each financial year.
2. Family Home Guarantee
For eligible single parents with dependents, this scheme offers home ownership with as little as 2% deposit.
3. Regional First Home Buyer Guarantee
Targeted at regional buyers, offering the same benefits as the First Home Guarantee with a local focus.
Each scheme has its own conditions — from income thresholds to property price caps — making personalised advice essential.
How First Home Buyer Loans Fit In
While the grant offers a financial boost, the structure of your first home buyer loans can greatly affect your long-term stability.
Key things to look for in a loan:
- Offset accounts to reduce interest
- Redraw facilities for flexibility
- Fixed vs variable options depending on rate outlook
- Lender participation in government schemes
Many lenders offer specific packages for first-time buyers, but not all loans are created equal. A good mortgage broker can help you compare across banks, credit unions, and non-bank lenders.
Top Strategies to Maximise Your Grant
1. Apply Early and Prepare Documentation
Both the grant and the Home Guarantee schemes have cutoffs and limits. Apply as early as possible — especially if you’re buying off the plan or building.
2. Use the Grant as Part of Your Deposit
While not always recommended, many lenders allow the grant funds to count towards your deposit. This can make it easier to qualify if your savings are limited.
3. Pair It with Stamp Duty Concessions
Victorian first-home buyers may also be eligible for:
- Stamp duty exemption for homes under $600,000
- Stamp duty concession for homes between $600,001 and $750,000
Combining the grant with these savings can significantly lower your upfront costs.
4. Consider Dual Applications
Buying with a partner? Only one of you needs to meet the first-home criteria — but both must live in the property for the required period. This can boost your borrowing power and unlock better rates.
5. Avoid Common Mistakes
- Don’t sign a contract before checking eligibility
- Make sure the property qualifies (new builds only for FHOG)
- Don’t rely on verbal confirmation from developers — get written assurance
- Know your deadlines (grant applications often must be submitted before or shortly after settlement)
The Role of a Broker in Maximising Your Outcome
A seasoned broker can help you:
- Determine your full eligibility for the first home buyers grant
- Navigate the complex paperwork and ensure proper timing
- Compare first home buyer loans across lenders
- Maximise grant impact by structuring the loan correctly
Having a mortgage professional in your corner means fewer errors and a better financial position over the life of your loan.
Real Example: How the Numbers Add Up
Let’s say you purchase a new apartment in Melbourne for $650,000:
- FHOG: $10,000
- Stamp Duty Saving: Up to $15,535
- First Home Guarantee: Avoid LMI (~$12,000 value)
Total potential benefit? Over $35,000 in combined grants and savings — a significant reduction in upfront costs.
Final Thoughts
Melbourne’s property market remains competitive, but first-home buyers have more tools than ever in 2025. Grants, guarantees, and well-structured loans can be the key to securing your first home without stretching your finances too far.
Start by understanding what’s available, then build a personalised strategy with the right experts. Whether you’re evaluating eligibility for the first home buyers grant or comparing first home buyer loans, Loanscope can help you navigate it all — confidently and efficiently.
Don’t let opportunity pass you by. Learn your options, act early, and make your 2025 homeownership goal a reality.
