First Home Owner Grant Victoria 2026: Complete Eligibility, Application and Savings Guide
If you are buying your first home in Victoria in 2026, the combination of government grants and concessions you can stack is meaningful — $10,000 in the First Home Owner Grant, plus up to $40,000+ in stamp duty exemption, plus the ability to buy with only a 5% deposit without paying Lender's Mortgage Insurance. Together these are worth more than most first home buyers realise, and the rules around them are stricter than the headlines suggest. This guide walks through what you actually qualify for, how to apply, and the common reasons applications get rejected.
As a Lyndhurst-based mortgage broker, our team at Dahiya Finance has helped hundreds of Victorian first home buyers stack these benefits since 2020. The information below reflects what we actually see in 2026 client purchases — not generic advice copied from a government website.
The $10,000 First Home Owner Grant: How It Works in 2026
The Victorian First Home Owner Grant (FHOG) is a $10,000 payment from the State Revenue Office to eligible first home buyers who purchase or build a brand new home valued at $750,000 or less. The key word is new. Established homes — even if it is your first time buying — do not qualify.
What counts as a new home in 2026?
A property that has never been previously sold or occupied as a home
A home built by the owner (owner-builder)
A house and land package where construction has not started
A substantially renovated home that meets the SRO definition (rare — most don't qualify)
An off-the-plan apartment purchased prior to occupation
Eligibility checklist
You must be at least 18 years old
You must be an Australian citizen or permanent resident (or applying jointly with someone who is)
You must not have previously owned residential property in Australia
You must live in the home as your principal place of residence for at least 12 continuous months, commencing within 12 months of settlement
The property value must not exceed $750,000
The property must be a new home as defined above
How and when to apply
Most buyers apply through their conveyancer or solicitor at settlement, who lodges the application with the State Revenue Office on your behalf. The grant is then paid at settlement and used towards the purchase price or deposit. You can also apply directly online via the SRO portal if you prefer to manage it yourself.
Stamp Duty Concessions: The Bigger Savings Most Buyers Miss
For most first home buyers in Melbourne's south-east, the stamp duty exemption is worth significantly more than the FHOG. Under current Victorian rules in 2026:
Property value $600,000 or less: Full stamp duty exemption — you pay $0 in stamp duty. On a $600,000 purchase, this saves you approximately $31,070.
Property value $600,001 to $750,000: Sliding-scale concession — partial savings that reduce as the price climbs. A $700,000 purchase typically attracts around $24,000 in stamp duty, but with the first home buyer concession this drops to about $8,000 — a saving of $16,000+.
Property value above $750,000: No concession. You pay full stamp duty — for a $800,000 purchase that's roughly $43,000.
Unlike the FHOG, the stamp duty concession applies to both new and established homes, which makes it the more valuable benefit for most buyers in suburbs where established homes dominate the market.
Eligibility for stamp duty concessions
You must be at least 18 years old
Australian citizen, permanent resident, or New Zealand citizen with a special category visa
You must not have previously owned residential property in Australia (different from FHOG: this includes investment properties too)
Property value must be $750,000 or less
You must live in the property as your principal place of residence for at least 12 continuous months within 12 months of settlement
Any co-purchaser must also meet first home buyer requirements
The First Home Guarantee: 5% Deposit Without LMI
The federal First Home Guarantee (FHBG, previously called FHLDS) is administered by Housing Australia and allows eligible first home buyers to purchase with just a 5% deposit without paying Lender's Mortgage Insurance (LMI). On a $600,000 purchase, this represents an LMI saving of approximately $20,000 — plus it lets you buy years earlier than waiting to save a 20% deposit.
For 2025-26, there are 35,000 places available across the federal government's home guarantee schemes (FHBG, Regional First Home Buyer Guarantee, and Family Home Guarantee combined). Places run on a financial year basis and typically run out before year-end, so timing matters.
Property price caps for the FHBG in Victoria 2026
Melbourne (capital city statistical area): $800,000
Rest of Victoria (regional): $650,000
Most of our Melbourne south-east suburbs — Cranbourne, Berwick, Pakenham, Officer, Narre Warren, Lyndhurst, Hampton Park — fall within the metro Melbourne $800,000 cap, which makes the scheme realistic for buyers in the Casey and Cardinia growth corridor.
FHBG income caps for 2026
Singles: $125,000 taxable income
Couples: $200,000 combined taxable income
How to access the FHBG
You cannot apply directly to Housing Australia. Applications must go through a participating lender. Around 35 lenders are accredited, including the major banks and many second-tier lenders. As a broker, we know which lenders have remaining 2025-26 places and which have the most buyer-friendly policies on top of the scheme.
How to Stack the Benefits in 2026
Here is how a typical Melbourne south-east first home buyer can stack all three benefits on a $700,000 brand new house and land package in Officer or Clyde North:
FHOG: $10,000 grant from the SRO (because it's a new home under $750k)
Stamp duty concession: Approximately $16,000-$18,000 in savings (using the sliding scale between $600k and $750k)
FHBG no-LMI: Approximately $18,000-$22,000 LMI saving if buying with a 5% deposit
Total potential savings: $44,000-$50,000+. That is genuinely life-changing for a first home buyer in 2026 — but only if you structure the purchase correctly and choose a lender that participates in all the relevant schemes.
Common Reasons First Home Buyer Applications Get Rejected
1. Co-buyer doesn't qualify
If you buy with a partner, parent, or sibling who has previously owned property, neither of you gets the FHOG or the stamp duty concession. Solutions exist (one buyer purchasing alone, or via a guarantor structure) but they need careful planning before contract.
2. Buying with the intention to rent it out first
You must live in the home as your principal place of residence for at least 12 months continuously, starting within 12 months of settlement. We've seen FHOG clawback action years after settlement when the SRO audits and discovers the buyer never moved in.
3. Property value just over $750,000
There's no concession at $750,001. Many buyers in 2026 are stretching budgets and end up purchasing just over the threshold without realising they've forfeited tens of thousands in concession.
4. Renovated home incorrectly claimed as new
The SRO's definition of substantial renovation is narrow. Most renovated homes do not qualify, even if marketed as such by the agent.
5. Choosing a lender that doesn't participate in FHBG
Of the 35 lenders accredited to the FHBG, not all hold remaining 2025-26 places at any given time. Going direct to a single bank without checking can mean you miss the scheme entirely.
Suburb-Specific Considerations for First Home Buyers
In Melbourne's south-east growth corridor — where most of our first home buyer clients purchase — the strategies vary by suburb:
First home buyers in Cranbourne: Established homes commonly fall under the $600k stamp duty exemption threshold. New estates in Cranbourne West and Cranbourne East offer house-and-land packages that qualify for FHOG.
First home buyers in Officer: Heavy new-build supply means the FHOG is almost universally available. Most packages fall just under $700k — perfect FHBG candidate territory.
First home buyers in Clyde North: One of the highest-volume FHOG zones in Victoria. Multiple estate developers active, lender appetite is strong, and FHBG places are typically still available.
First home buyers in Pakenham: Mix of new and established stock. Stamp duty concession applies broadly, and most new builds qualify for FHOG.
First home buyers in Berwick: Established-heavy market with higher median values. Most properties exceed the $750k FHOG cap, so the focus is on stamp duty concession and FHBG eligibility.
First home buyers in Lyndhurst: Mix of established and new builds. Our office is here — we know every active estate and which lenders fund them most efficiently.
When to Start the Process
The biggest mistake first home buyers make is starting the finance conversation after they've put an offer down. By then it's too late to optimise the strategy. The right sequence is:
3-6 months before purchase: Talk to a broker. Get clear on your borrowing capacity, deposit requirements, and which schemes you qualify for.
Before searching: Get pre-approval so you can move fast when the right property appears and so vendors take your offer seriously.
Before signing the contract: Have your broker check the property meets all relevant scheme requirements — especially the FHOG new-home definition and FHBG price caps.
At contract: Notify your conveyancer of all schemes you're using so they coordinate the FHOG and stamp duty paperwork.
Frequently Asked Questions
Can I get the FHOG if my partner has previously owned property?
No. Both purchasers must be first home buyers. If your partner has previously owned residential property (even decades ago, even briefly), you both forfeit the grant. The same applies to the stamp duty concession.
Does the FHOG count as part of my deposit?
Yes — most lenders accept the FHOG as part of your deposit, though some require additional genuine savings on top. We know which lenders accept FHOG as 100% of the deposit and which want to see additional savings.
Can I buy a unit or apartment and still qualify?
Yes for the stamp duty concession (any property type, as long as it's residential and your home). For the FHOG, the unit must be brand new — typically off-the-plan apartments qualify, while established units do not.
What happens if I move out within 12 months?
The SRO can claw back the FHOG and stamp duty concession. There are limited exceptions for life events (illness, death of co-buyer, defence force posting) but you must notify the SRO promptly.
How long does FHOG payment take?
Through your conveyancer at settlement, the grant typically pays to your settlement account directly — same day. If applying separately after settlement, allow 4-6 weeks.
What if my income is just over the FHBG cap?
Strict caps: $125k single or $200k couple. No grace. However, you can still use FHOG and stamp duty concession even if you're over the FHBG income cap — you'd just need to either save more deposit or pay LMI.
Talk to a Local First Home Buyer Specialist
At Dahiya Finance we have specialised in first home buyer applications across Melbourne's south-east since 2020. We hold 5-star Google reviews, are MFAA members, AFCA registered, and operate under Australian Credit Licence #388570 (Credit Representative #550577).
Our service for first home buyers is free — the lender pays us a commission once your loan settles, you pay nothing for our advice or application work. We compare 40+ lenders to find the right combination of rate, scheme participation, and lender policy fit for your specific situation.
To book a free, no-obligation 20-minute consultation, call us on 0404 129 000 (mobile), (03) 9005 4079 (Melbourne office) or (02) 7238 0946 (Sydney office). You can also book online.