Owning your first home might seem like an impossible dream with rising property prices and higher interest rates. But there’s good news—state and federal governments now offer more assistance than ever to help you get on the property ladder. By exploring the financial support available, your dream of homeownership might be closer than you thought.

The median house price in Australia is $779,000, with Melbourne’s median at $853,000. With average mortgage interest rates hovering around 7.2%, accessing every dollar of assistance is essential. Here’s a breakdown of the key initiatives available to first home buyers in Victoria:

1. First Home Guarantee (Formerly First Home Loan Deposit Scheme)

• Minimum Deposit: 5%
• Purchase Price Cap:
  • $800,000 in Capital City/Regional Centres
  • $650,000 in the Rest of the State

This program allows eligible first home buyers to secure a loan with as little as a 5% deposit, avoiding the need for costly lender’s mortgage insurance (LMI).

2. First Home Super Saver Scheme

• Contribution Limits: Up to $15,000 per financial year, capped at $50,000 total across all years.

This scheme enables you to save for your first home faster by using your superannuation account to make voluntary salary-sacrificed contributions.

3. First Home Owner Grant

• Grant Amount: $10,000
• Eligibility: Applies to buying or building a new home valued up to $750,000.

This grant is a fantastic way to offset initial costs when purchasing or constructing a new property.

4. Stamp Duty Concessions, Waivers, and Other Initiatives

• First Home Buyer Duty Exemption/Reduction: Full exemption for homes with a dutiable value up to $600,000, and a concession for values between $600,000 and $750,000.
• Off-The-Plan Concession: Receive a duty concession calculated as the contract price minus construction/refurbishment costs incurred after the contract date.
• Principal Place of Residence Duty Concession: For homes with a dutiable value between $130,000 and $550,000.

5. Homebuyer Fund

If you have a 5% deposit, the Victorian Government may contribute up to 25% of the purchase price in exchange for an equivalent share in the property. This initiative helps reduce the amount you need to borrow.

Take the First Step Toward Homeownership

With so many options available, buying your first home doesn’t have to be intimidating. By taking advantage of these grants, schemes, and concessions, you’re well on your way to achieving your homeownership goals.

Ready to take the first step toward owning your dream home? Contact us today for expert advice!