First-Time Buyer Programs & Grants: Complete 2026 Guide

The Short Answer

In 2026, Victorian first-home buyers have three distinct "financial levers" to pull. 1. The $10,000 Cash Grant (only for new builds under $750k). 2. Stamp Duty Exemptions (pay $0 tax on any home under $600k). 3. The Federal First Home Guarantee, which now allows you to buy a home up to $950,000 in Melbourne with just a 5% deposit. The secret to success in 2026 is knowing which of these levers you can "stack" together.

The Federal "First Home Guarantee" (The 5% Deposit)

• The Benefit: You only need a 5% deposit, and the Federal Government guarantees the rest. This saves you paying Lenders Mortgage Insurance (LMI), which typically costs $20,000–$35,000.
• The 2026 Update: The price cap for Melbourne and Geelong has been raised to $950,000.
• Who is this for? Buyers targeting established family homes in "middle-ring" suburbs like Ringwood, Moorabbin, or Croydon.
• Example: You find a home for $900,000. Instead of needing a $180,000 (20%) deposit, you can enter the market with just $45,000 (plus transaction costs).

The Victorian First Home Owner Grant (FHOG)

• The Benefit: A $10,000 tax-free cash payment.
• The Catch: It is strictly for New Homes only (brand new, never lived in).
• The Price Cap: The property value must be $750,000 or less.
• Who is this for? Buyers looking at House & Land packages in Pakenham, Clyde North, or Officer.
• Warning: If your build contract + land value tips over to $751,000, you lose the entire $10,000. Be careful with "upgrades" at the builders' gallery!

Stamp Duty (Land Transfer Duty) Exemptions

• The Benefit: The Victorian State Revenue Office waives the purchase tax.
• Tier 1 (Full Exemption): Buy a home for $600,000 or less, pay $0 stamp duty. (Savings: ~$31,070).
• Tier 2 (The Concession): Buy a home between $600,001 and $750,000, and pay a reduced rate on a sliding scale.
• Who is this for? Apartment buyers in St Kilda or South Yarra.
• Strategy: A $590,000 apartment effectively costs you $590,000. A $610,000 apartment costs you $610,000 + approx $4,000 duty. The jump is small, but staying under $600k is the "gold standard" for value.

The "Stacking" Strategy: How to Combine Them

Can you use all three? Yes, but it is difficult because of the different price caps. Here are the two most common "stacks" we see at Fornieri & Azar:

Stack A: The "Maximum Government Help" (Outer East)

• Target: Brand new House & Land in Officer.
• Price: $700,000.
• The Stack:

1. Grant: You get +$10,000 cash.
2. Duty: You get a massive discount (pay approx. $10k duty instead of $37k).
3. Deposit: You use the 5% Federal Guarantee.

• Result: You buy a $700k asset with very little upfront cash.

Stack B: The "Capital Growth" Play (Inner East)

• Target: Established 2-bedroom Unit in Malvern East.
• Price: $850,000.
• The Stack:

1. Grant: $0 (It’s not a new home).
2. Duty: Full price (Price is over $750k).
3. Deposit: You CAN use the 5% Federal Guarantee (because it’s under the $950k cap).

• Result: You get no "free money," but you secure a high-growth asset with a small deposit.

2026 Eligibility Checklist

Before applying, ensure you meet the "Clean Slate" rules:

[ ] Citizenship: You must be an Australian Citizen or Permanent Resident.x`

[ ] Prior Ownership: You must not have owned a residential property in Australia before.

[ ] Occupancy: You must move in within 12 months and live there for 12 continuous months. (No buying it and renting it out immediately on Airbnb).

Director's Tip: "Don't let the 'tail wag the dog.' Never buy a poor-quality asset in a bad location just to get a $10,000 grant. Over 10 years, a high-quality property in Forest Hill without a grant will likely outperform a cheap estate build by $100,000+." — Luke Fornieri

FAQ: Common Questions

Q: Does the $10,000 grant apply to renovated homes? Only if the home has been "substantially renovated" to the point where it is effectively a new build and has never been lived in since the renovation. This is rare.

Q: Can I use the grant as part of my deposit? Yes, most lenders allow the $10,000 FHOG to be counted towards your funds to complete, but you usually need your own 5% "genuine savings" first.

Q: I’m buying with my partner, and he owned a home 10 years ago. Are we eligible? Unfortunately, no. In Victoria, if either partner has owned property previously, you are both ineligible for the FHOG and Stamp Duty exemptions.