What are first home buyers entitled to in Victoria in 2025?

Buying your first home can feel like stepping into the unknown: a mix of excitement, nerves, and a dash of “what have I got myself into?” I remember pacing around my tiny rental in Collingwood, wondering if I’d ever save enough to break into Melbourne’s property market. But here’s the good news: if you’re a first home buyer in Victoria, there’s a bunch of perks waiting to lighten the load. From grants to tax breaks, these entitlements can shave thousands off your costs and get you into your dream home sooner. Whether you’re eyeing a sleek apartment in South Yarra or a renovation project in Geelong, let’s dive into what’s on offer in 2025.

The First Home Owner Grant: A Cool $10,000 Boost

First off, there’s the First Home Owner Grant, or FHOG for short. It’s a single payment of $10,000 to help you purchase or build a new home. I like to think of it as the government tossing you a lifeline just when you need it most. But, as with anything worthwhile, there are a few catches:

The property has to be new: think freshly built homes or ones that have been heavily renovated.
The total value (land plus house) can’t go over $750,000.
You need to be an Aussie citizen or permanent resident, over 18.
You can’t have owned a home or land in Australia before.
You’ve got to live there as your main residence for at least 12 months, starting within a year of buying.

This is incredibly helpful if you’re considering growing areas like Point Cook or Werribee, where new housing developments are appearing everywhere. A mate of mine used it to build in Pakenham and said it was the difference between scraping by and actually enjoying the process.

Stamp Duty Relief: More Cash to Play With

Then there’s stamp duty, the tax that hits you when you buy a property. Normally, it’s a hefty slug: thousands of dollars gone in a flash. But Victoria offers some excellent support for those buying their first home:

No Stamp Duty: Buy a place worth $600,000 or less, and you pay nothing. Zero. For a $600,000 home, that’s $31,070 back in your pocket, enough for a new couch or a weekend away.
Discounted Rates: If your home’s between $600,001 and $750,000, you get a sliding discount. A $650,000 place, for instance, drops from $34,070 to $11,356 in stamp duty. That’s a win!

This applies to new and existing homes, so you’ve got options. I’ve seen people snap up older gems in Northcote or modern flats in St Kilda with these savings. It’s like finding a hidden discount code right when you’re about to check out: suddenly, everything feels more doable.

Victorian Homebuyer Fund: Your Deposit Shortcut

Saving for a deposit in Melbourne can be brutal. I’ve lost count of how many coffees I skipped trying to stash cash away! That’s where the Victorian Homebuyer Fund comes in clutch. It’s a deal where the government shares equity with you to help you buy. Here’s the gist:

You only need a 5% deposit (or 3.5% if you’re Aboriginal or Torres Strait Islander).
The state covers up to 25% of the price (35% for Indigenous buyers).
Your loan shrinks, and you skip lenders’ mortgage insurance, saving you a bundle.

Imagine a $700,000 pad in Carlton. You put down $35,000 (5%), the government adds $175,000 (25%), and your mortgage is just $490,000. When you sell or refinance later, you settle up their share. For many, though, this scheme provides a significant boost, allowing you to move in years earlier than you might have otherwise.

Who’s Eligible? The Basics

Each perk has its own rulebook, but they overlap on a few key points:

Australian citizen or permanent resident? Check.
Never owned a home or land in Australia (you or your partner)? Check.
Planning to live in the place for at least 12 months? Check.

Some details vary, so dig into the specifics if your situation’s a bit quirky, like buying with a trust. A quick call to the State Revenue Office or a broker can clear things up.

How to Get Started

Claiming these goodies isn’t rocket science. Here’s the rundown:

FHOG: Apply through your lender or the State Revenue Office with ID, residency proof, and your contract.
Stamp Duty Savings: No extra steps: it’s baked into the settlement if you qualify.
Homebuyer Fund: Team up with a participating lender (like Bendigo Bank) and check eligibility online.

Tip: Gather your paperwork early—passport, visa if needed, and sale docs. It’ll save you a headache later.

Quick FAQs for Curious Minds

Got questions? Here’s what I hear most from Melbourne buyers:

Can I use the FHOG on an old house? Nope, new builds or major renos only.
Do stamp duty breaks require me to be buying my first home? Yes, you can’t have owned a home before.
Can I stack all these benefits? If you tick the boxes, absolutely: combine away!
What if my partner’s owned before? Sorry, you’re both out of luck for these perks.

Your Melbourne Home Is Waiting

These entitlements aren’t just numbers: they’re your ticket to owning a slice of Victoria sooner. Whether it’s a quirky terrace in Fitzroy or a spacious spot in Doncaster, they make the impossible feel within reach. I’ve seen friends go from renters to homeowners thanks to these boosts, and it’s pretty inspiring.

If the details are spinning your head, don’t sweat it. The team at Pearson Chambers Conveyancing can guide you through the maze: grants, contracts, the lot. They even offer a free Section 32 review to double check your paperwork. Give them a shout:

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au