So, you’ve decided it’s time to swap renting for owning, and the idea of having your name on the title deed is both thrilling and terrifying. Sound familiar?
Buying your first home is more than just daydreaming about a backyard BBQ in Melbourne. It involves managing government assistance, deposits, loan approvals, and confusing mortgage terms. This is when things become complicated unless you have the proper advice.
Luckily, assistance is available for first-time homebuyers in Melbourne, including low-deposit loan programs, stamp duty exemptions, and cash awards. It also becomes much simpler when you work with knowledgeable home loan brokers in Melbourne.
In this guide, we’ll break down all the major benefits and schemes you can tap into as a first-time buyer. Let’s take it one wise step at a time and make the path to homeownership easier.
Schemes That Benefit First Home Buyers in Melbourne
1. First Home Owner Grant (FHOG)
When it comes to building or buying a new home, the FHOG is your best friend.
If the property is new and worth up to $750,000, qualifying first-time homebuyers in Victoria can get a $10,000 incentive.
Who is eligible?
- You have to be an Australian citizen/permanent resident
- Neither you nor your spouse must have previously owned a home
- The house needs to be brand-new and has never been lived in
This grant helps reduce your overall loan and can be used towards your deposit or upfront costs.
2. First Home Guarantee (Previously First Home Loan Deposit Program/Scheme)
It is challenging to save a 20% down payment, particularly in the real estate market in Melbourne. That’s where the First Home Guarantee comes in.
This government program allows qualified first-time home buyers to buy a house with as low as a 5% down payment and avoid paying Lenders Mortgage Insurance (LMI).
Key Benefits:
- Only a 5% deposit required
- No LMI (which can save you thousands)
- Available for new and existing houses
Who is eligible?
- Individual income under $125,000 or $200,000 for couples
- Must live on the property
- Must not have had a residence during the previous ten years.
Stamp Duty Exemptions and Concessions
Your purchase may increase by tens of thousands due to stamp duty. Fortunately, eligible first-time homebuyers in Victoria are entitled to incentives.
- No stamp duty for houses under $600,000
- Discounted stamp duty for homes up to $750,000
4. Other Government Support for First Home Buyers
Help to Buy (Shared Equity Scheme)
This program lowers your loan amount and repayments by allowing the government to contribute up to 40% of the home price for new homes and 30% for existing homes.
This will give low- to middle-income individuals even more options and is anticipated to launch in Victoria soon.
Choose Home Loan Brokers in Melbourne
If navigating banks, loan types, and government grants feels overwhelming, you’re not alone. This is where a local home loan broker in Melbourne becomes invaluable.
What a broker does:
- Compares loans from 30+ lenders
- Helps you apply for FHOG, First Home Guarantee, etc.
- Gets you the best deal—often better than what your bank offers
- Saves you time, money, and stress
The best part? Most mortgage brokers don’t charge you a fee. The lender pays them after settlement, so they aim to help you find the most suitable loan.Working with the best mortgage broker in Melbourne, like LTE Loans, makes you feel confident knowing someone is in your corner and advocating for your financial future.
Summary of Benefits
Benefit | What You Get |
FHOG | $10,000 for a new home in Victoria |
First Home Guarantee | Buy with 5% deposit & no LMI |
Stamp Duty Concession | Full or partial exemption |
Help to Buy | Up to 40% shared equity contribution |
Brokers’ Help | Access to best rates, lender options, and expert advice |
Ready to Buy Your First Home?
If you’re a First Home Buyer in Melbourne, don’t let complexity stop you. Partnering with LTE Loans to unlock benefits, reduce stress, and secure the best deal possible.
Our expert brokers specialize in helping first-home buyers secure the right home loan, apply for available grants, and move into their dream homes, without the hassle.
We simplify the paperwork, give an explanation for everything, and stand by you at every step.
With the right access to lenders, we’ll discover a solution that suits your budget and goals.
Frequently Asked Questions:
1. Can I benefit from both FHOG and the First Home Guarantee?
Yes, you can combine both. The FHOG grants you, while the Guarantee helps with a low deposit and removes LMI.
2. How much cost deposit do I require as a first home buyer?
A deposit of just 5% is needed for the First Home Guarantee, which is significantly less than the usual 20%.
3. Do I have to pay a fee to work with the best mortgage broker in Melbourne?
Usually no. The lender pays most brokers, so their service is free for you.
