Updated 24 January 2018
New Pilot Shared Equity Scheme
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.
First Home Owner Grant - Regional Victoria
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.
Off the plan purchases
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.
New stamp duty measures for First Home Buyers in Victoria
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. Use this home loan calculator to find out your stamp duty costs.