A payment of up to $10,000 is available for eligible first home owners in metropolitan Victoria. Meanwhile, first home buyers building new homes in regional Victoria may be eligible for a FHOG of $20,000.
First home buyers in Victoria can tap into plenty of financial support to get into the market sooner:
It all adds up to give first home buyers in Victoria more opportunities to buy a place of their own. Keep on reading below for more information and the various financial support available in Victoria.
Under the terms of the new Pilot Shared Equity Scheme, eligible first home buyers will only need to have a 5% deposit in order to buy a home. The Victorian State Government takes a proportional interest of up to 25% in the property.
First home buyers will then be able to take out a loan that is worth 70% of the value of the home (thanks to their 5% deposit and the Government’s 25% stake in the property).
Once the first home buyer sells the property, they will just have to repay the Government’s proportional interest.
To be eligible for the Government support, singles must be earning an annual income of $75,000 or less and couples must have a combined household income of $95,000 or less.
For contracts entered into between 1 July 2017 and 30 June 2020, the Victorian Government will provide a $20,000 grant to first home buyers purchasing or building new properties in regional Victoria up to the value of $750,000.
If you are a first home buyer purchasing an off the plan property, you may be entitled to a concession.
Under the terms of the concession, first home buyers will pay duty on the value of the property and construction at the time of the contract date. Generally speaking, when a contract is entered into for an off the plan property purchase, construction won't have started or hasn't yet been completed. As such, first home buyers won’t have to pay as much in duty.
Unfortunately, only first home buyers who occupy the property as their principal place of residence will be eligible for the concession.
On 1 July, 2017, the Victorian Government announced it would abolish stamp duty for first home buyers purchasing properties worth $600,000 or less.
In addition, those purchasing a property worth between $600,000 and $750,000 will receive some form of stamp duty concession.