Victoria’s First Home Buyer Revolution: Save $75,000+ with Expanded Benefits


Victoria’s first home buyers are about to experience the most significant opportunity in the state’s property history. The Federal Government’s expanded First Home Guarantee (effective October 1st, 2025) combined with Victoria’s generous and extended state-based concessions creates unprecedented affordability that could save Victorian buyers over $75,000 in upfront costs while opening access to premium Melbourne suburbs previously out of reach.

As Jane Slack-Smith, Director of Investors Choice Mortgages and twice-winner of Australian Mortgage Broker of the Year, explains: “Victoria offers one of Australia’s most stable and predictable first home buyer benefit packages. With extensions to key concessions running until 2026, Victorian buyers can plan their purchase with confidence, knowing exactly what benefits they can access.”

Key Takeaways: Your Victorian Advantage

  • Enhanced Access: Purchase up to $950,000 in Melbourne/Geelong with just 5% deposit, no income restrictions
  • Substantial Savings: Combined federal and state benefits can save $75,000+ in upfront costs
  • Extended Timelines: Key concessions extended until October 2026, providing planning certainty
  • Premium Locations: Access to established Melbourne suburbs like Box Hill, Glen Waverley, and Doncaster
  • New Home Focus: $10,000 grant plus stamp duty savings for new construction purchases
  • Off-the-Plan Benefits: Special concessions for apartment and townhouse purchases until 2026
  • Investment Potential: Melbourne’s consistent growth history supports wealth-building strategy
  • Professional Advantage: Expert guidance essential for maximising Victorian-specific opportunities

The Victorian Advantage: Why Melbourne First Home Buyers Win Big

Melbourne’s Property Market Fundamentals

Victoria, particularly Melbourne, offers unique advantages that make the expanded First Home Guarantee especially powerful. Melbourne has been Australia’s fastest-growing capital city, adding over 100,000 residents annually pre-COVID and returning to strong growth post-pandemic.

The Victorian Government’s massive infrastructure programme, including the Metro Tunnel, North East Link, and Suburban Rail Loop, is creating new growth corridors and enhancing connectivity across Melbourne. These infrastructure investments historically drive property value growth in surrounding suburbs.

Melbourne’s economy spans finance, technology, manufacturing, education, and creative industries, providing employment stability that supports property markets. With world-class universities and hospital precincts, Melbourne attracts domestic and international residents, creating consistent rental demand.

The $950,000 Sweet Spot

The expanded guarantee’s Melbourne/Geelong price cap of $950,000 strategically opens access to established suburbs with proven growth records, including Box Hill (Metro Tunnel connections), Glen Waverley (premium school zones), Doncaster Region (high-growth corridor), Geelong Growth Areas (regional city benefits), and outer Eastern Suburbs (established communities).

Federal Benefits Available to All Victorians

Expanded First Home Guarantee Benefits:

  • Unlimited Places: Every eligible Victorian can access the scheme from October 1st
  • No Income Caps: High-earning Melbourne professionals no longer excluded
  • 5% Deposit Only: Purchase $950,000 property with $47,500 deposit
  • No LMI: Save $15,000-$35,000 in Lenders Mortgage Insurance
  • 95% Lending: Government guarantees 15% of property value

Victorian State Benefits: Generous and Extended

First Home Owner Grant – $10,000:

  • Eligibility: New homes only (never been lived in)
  • Property Value Cap: Up to $750,000
  • Conditions: Must move in within 12 months and live continuously for 12 months

Stamp Duty Concessions – Substantial Savings:

  • Full Exemption: Properties up to $600,000 (saving up to $31,070)
  • Graduated Concessions: Properties $600,001-$750,000 on sliding scale
  • Maximum Savings: Full exemption saves $31,070, partial concessions save $10,000-$25,000

Off-the-Plan Concession – Extended Opportunity:

  • Extended Timeline: Available until October 21, 2026
  • Construction Deduction: 100% deduction of construction costs for apartments, units, and townhouses
  • Strategic Advantage: Reduces dutiable value for stamp duty calculation

Real-World Victorian Scenarios: Maximum Benefit Stacking

Scenario 1: New Home in Growth Corridor – Total Savings $178,070

Property: $720,000 new house and land package in Officer/Pakenham growth corridor

Traditional Approach:

  • 20% deposit: $144,000
  • Stamp duty: $38,070
  • Total upfront: $204,070

Strategic Stacking Approach:

  • 5% deposit: $36,000
  • First Home Owner Grant: -$10,000 (if you are eligible)
  • Stamp duty: $0 (new home exemption)
  • LMI: $0
  • Net upfront cost: $26,000
  • Total potential saving: $178,070

Scenario 2: Established Home in Established Suburb – Total Savings $180,570

Property: $850,000 established home in Box Hill/Glen Waverley area

Strategic Stacking Approach:

  • 5% deposit: $42,500
  • Stamp duty concession: $20,000 (partial concession)
  • LMI: $0
  • Net upfront cost: $62,500
  • Total saving: $180,570

Scenario 3: Off-the-Plan Apartment – Total Savings $152,070

Property: $680,000 off-the-plan apartment in inner Melbourne

Strategic Stacking Approach:

  • 5% deposit: $34,000
  • First Home Owner Grant: -$10,000 (if you are eligible)
  • Stamp duty: $15,000 (maximum off-the-plan concession)
  • LMI: $0
  • Net upfront cost: $39,000
  • Total saving: $152,070

Strategic Location Selection: Melbourne’s Growth Corridors

Outer Eastern Suburbs: The Box Hill Advantage

Box Hill and the surrounding areas represent exceptional value with Metro Tunnel connections and established Asian communities. Key suburbs include Box Hill/Box Hill North (Metro connection), Glen Waverley/Mount Waverley (premium school zones), Doncaster/Doncaster East (high-growth area), and Blackburn/Blackburn North (emerging gentrification). Investment fundamentals show historical growth of 7-8% annually, rental yields of 3-4%, infrastructure connectivity, and established demographics.

Northern Growth Corridor: Infrastructure-Led Opportunities

Melbourne’s north offers exceptional growth potential, including Preston/Reservoir (gentrification underway), Bundoora/Mill Park (family-friendly), South Morang/Mernda (growth corridor), and Epping (transport hub). Growth drivers include Metro Tunnel connectivity, hospital and education expansion, population growth along train corridors, and government area improvement initiatives.

Western Growth Corridor: Value and Potential

Melbourne’s west combines affordability with growth potential, including Footscray/Maribyrnong (inner-west gentrification), Sunshine/St Albans (transport hub), Werribee/Hoppers Crossing (growth corridor), and Melton (outer growth area). Benefits include lower entry prices, major transport infrastructure, employment growth, and government investment.

Regional Victoria: Geelong’s Exceptional Opportunity

Geelong offers unique advantages with the same $950,000 price cap, superior value with larger properties, growth potential from Melbourne connectivity, and major infrastructure projects. Strategic suburbs include Geelong West/Newtown, Belmont/Grovedale, Armstrong Creek, and Torquay/Ocean Grove.

Advanced Strategies: Maximising Your Victorian Investment

New Home vs Established: Strategic Decision Making

New Home Strategy includes access to $10,000 grant, potential stamp duty exemptions, depreciation benefits, modern efficiency, and growth corridor locations.

Established Home Strategy provides access to established suburbs with proven growth, immediate amenities, renovation opportunities, character features, and better transport connectivity.

Off-the-Plan Advantages: The 2026 Window

Victoria’s off-the-plan concessions, extended until October 2026, provide reduced stamp duty through construction cost deductions, access to grants for new apartments, potential capital growth during construction, and fixed price protection.

Investment Conversion: From Home to Portfolio Foundation

The Victorian Rental Market

Melbourne’s rental market provides excellent conversion opportunities through ongoing population growth, strong university sector, employment growth across industries, and infrastructure improvements.

Typical Rental Yields by Area:

  • Inner Melbourne: 3-4% yields with strong capital growth
  • Middle Ring: 4-5% yields with moderate capital growth
  • Outer Growth Areas: 5-6% yields with higher growth potential
  • Geelong: 4-5% yields with emerging growth prospects

Tax Optimisation for New Homes

New homes provide superior tax benefits, including building depreciation at 2.5% annually, plant and equipment depreciation, total depreciation often exceeding $10,000 annually, and professional depreciation schedules maximising benefits.

Why Choose Investors Choice Mortgages

Jane Slack-Smith’s and Broker Partners Victorian Expertise

  • Twice-winner of Australian Mortgage Broker of the Year
  • Over 20 years of Melbourne property cycle experience
  • Deep understanding of Victorian market dynamics and growth patterns
  • Expert knowledge of infrastructure projects affecting property values

The Investors Choice Victorian Advantage

  • Melbourne Market Knowledge: Over 20 years of experience in Melbourne property cycles
  • Lender Relationships: Access to all 33+ participating lenders with Victorian preferences
  • Developer Connections: Relationships with quality developers in growth corridors
  • Investment Focus: Understanding of rental yields and capital growth potential
  • Ongoing Support: Relationship continues beyond settlement for future planning

Our Victorian Client Success Framework

Stage 1: Strategic assessment, including complete financial analysis and goal-setting

Stage 2: Property selection with targeted search in strategic locations

Stage 3: Finance optimisation with lender selection and loan structure optimisation

Stage 4: Wealth-building setup with investment conversion planning

Risk Management: Victorian Market Considerations

Market-Specific Risk Factors

Melbourne’s higher property values mean greater exposure to interest rate changes, off-the-plan purchases carry completion risks, planned infrastructure may face delays, and Melbourne experiences more pronounced cycles. Melbourne has been the ugly duckling of the property markets post Covid. But where there has been a stagnation there is the potential for the market to come back hot with this new first home buyer stimulus. Many investors have left the Victorian market due to increased taxes so there are opportunities to be had.

Professional Risk Mitigation

Comprehensive due diligence processes, ensuring adequate financial buffers, comprehensive insurance coverage, and understanding future sale or rental options from purchase.

Conclusion: Your Victorian Homeownership and Wealth Building Journey

Victoria’s combination of the expanded First Home Guarantee with generous and extended state concessions creates the most comprehensive opportunity in the state’s history. With potential savings exceeding $75,000 and access to suburbs that deliver strong capital growth, Victorian buyers are positioned to achieve homeownership while building substantial wealth.

Jane Slack-Smith and the Investors Choice team have been preparing for this moment, with systems and relationships in place to ensure clients access maximum benefits from day one. Our track record helping Victorians build substantial property portfolios through strategic first purchases speaks for itself.

Download your free First Home Buyer Guide and book your consultation with Jane Slack-Smith’s expert team to learn how to save $75,000+ in Melbourne’s rising suburbs.

Frequently Asked Questions

Can I access both the $10,000 grant and stamp duty concessions simultaneously?

Yes, the First Home Owner Grant and stamp duty concessions are separate benefits that can be combined. Both apply to properties under $600,000, so strategic planning is needed to maximise total benefits.*

What’s the best approach for maximising benefits on a $850,000 established home?

For an $850,000 established home, you’d access the 5% deposit expanded FHG program, save LMI costs ($25,000+), and receive partial stamp duty concessions (approximately $20,000). Total upfront savings would be around $172,500.*

Should I buy new or established to maximise Victorian benefits?

This depends on location priorities and budget. New homes under $750,000 access the $10,000 grant plus potential stamp duty exemptions, but may be in outer areas. Professional analysis of your goals is essential.*

How does the off-the-plan concession work? The off-the-plan concession allows 100% deduction of construction costs when calculating stamp duty, reducing the dutiable value. For a $680,000 apartment with $200,000 construction costs, stamp duty is calculated on $480,000, saving approximately $10,000-15,000.*

What happens if Melbourne property prices rise significantly after I buy with 5% deposit?

Rising property values benefit you through increased equity. If values rise 10% in your first year, an $850,000 property becomes $935,000, giving you $127,500 in equity potentially enough for investment property expansion.

Can I use these benefits in regional Victoria?

Yes, the same benefits apply throughout Victoria, with Geelong included explicitly in the higher $950,000 price cap. Regional areas often provide larger properties and better lifestyle while accessing identical benefits.

How important is professional guidance for maximising Victorian benefits?

Given the complexity of combining benefits, coordinating timing, and selecting optimal properties, professional guidance is highly valuable. The average benefit increase through professional strategies is 15-25% higher, often worth $10,000-30,000.

What’s the timeline for applying after October 1st? Applications begin immediately on October 1st through participating lenders. Settlement timing varies: established homes 30-60 days, new homes 60-90 days, off-the-plan 12-24 months.*

How do I maintain benefits if I need to move early?

Federal guarantees have provisions for genuine hardship. State benefits typically require 12-month residency, with penalties possible for early voluntary moves. Proper initial planning ensures the property meets your needs.

What’s the long-term wealth building potential?

Melbourne’s historical growth rates of 7-8% annually mean an $850,000 property could be worth $1.2M+ within 5 years. Combined with loan reduction and rental income, this creates substantial equity for future investments.

*This information is provided as a general guide only. You should speak with a qualified professional to confirm your eligibility and determine whether any concessions or benefits apply to your specific situation.