First Home Buyer: Guide for Victoria

Buying your first home in Victoria remains a key pathway to property ownership, with strong first home buyer participation supported by government grants, stamp duty concessions and affordable housing opportunities. According to McGrath Research First Home Buyer Report, first home buyers continue to account for a significant share of owner-occupier lending despite ongoing affordability pressures.

Over the past decade, the share of owner-occupier loans taken out by first home buyers in Victoria increased from 26% to 39%, highlighting the growing role this buyer segment plays in the state's property market. Loan commitments to first home buyers reached 39,638 in the year to Q1 2026, the highest total recorded across Australia's east coast and 3% higher than a year earlier.

Entry-Level Property Prices Continue to Rise

Demand for affordable housing, combined with population growth, constrained supply and improved affordability relative to higher-priced market segments, has supported price growth in Victoria's entry-level property market.

Key movements in the lowest quartile of the market during the year to Q1 2026 included:

• Regional Victoria house prices increased 7% to an average of $532,200.
• Regional Victoria apartment prices rose 5% to $405,600.
• Melbourne house prices increased 5% to $710,100.
• Melbourne apartment prices grew 3% to $480,000.

Recent tax changes may help reduce investor activity over time, potentially easing competition for entry-level properties and creating more opportunities for first home buyers.

Government Incentives Available to Victoria First Home Buyers

Victoria offers a range of state and federal support measures designed to lower upfront costs and improve access to home ownership.

First Home Owner Grant (FHOG): Eligible buyers purchasing a new home valued up to $750,000 may receive a $10,000 First Home Owner Grant.

First Home Buyer Stamp Duty Concession: Eligible first home buyers can access significant stamp duty savings, including:

• No stamp duty on established homes valued up to $600,000.
• Reduced stamp duty on established homes valued between $600,001 and $750,000.
• No stamp duty on new homes valued up to $600,000.
• Reduced stamp duty on new homes valued between $600,001 and $750,000.
• Stamp duty exemptions and concessions may also apply to eligible vacant land purchases.

First Home Guarantee (FHG): The First Home Guarantee allows eligible buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI), helping reduce the savings required to enter the market.

Help to Buy: The federal Help to Buy shared equity scheme allows eligible buyers to purchase with as little as a 2% deposit while sharing a portion of the property's equity with the Australian Government.

First Home Super Saver Scheme (FHSSS): The First Home Super Saver Scheme enables eligible buyers to make voluntary superannuation contributions and withdraw those funds to help build a home deposit.

Key Takeaway for First Home Buyers

Victoria continues to offer a range of pathways into home ownership through grants, stamp duty concessions and low-deposit purchasing schemes. While affordability remains a challenge in some markets, government support can significantly reduce upfront expenses and help eligible buyers enter the property market sooner.

Before purchasing, first home buyers should budget for additional expenses such as legal fees, inspections, loan establishment charges and moving costs. Seeking professional advice and confirming eligibility for available grants and concessions can help buyers make more informed purchasing decisions.

Read the full report for detailed market insights, eligibility requirements, government incentives and practical pathways to home ownership in Victoria.

Learn more: McGrath Research | First Home Buyer Report | VIC