First home buyer stamp duty exemption Vic 2017

May 22, 2017
Steven Powell


What’s happening

The Victorian Government announced the abolition of stamp duty for first home buyers who purchase new or established homes from 1 July 2017.

Main features summarised

• Purchases of $600,000 or less are exempt from paying stamp duty.
• Reduced duty will apply for purchases between $600,001 and $750,000.
• You must be eligible for the First Home Owner Grant (FHOG) – see link below.
• The home must be used as your principle place of residence for a continuous period of 12 months starting within 12 months of completing your purchase.
• The exemption does not apply to contracts signed before 1 July 2017.

How much deposit do I need

The deposit that you need to purchase an established home will vary depending on the lender and loan product chosen. The following table is a guide to the minimum deposit required.

Purchase price          Deposit required
$400,000                   $24,500 to $34,500
$500,000                   $30,000 to $42,500
$600,000                   $35,000 to $50,000

Genuine savings

Most lenders require that 5% of the purchase price be ‘genuine savings’. This means the money must have been saved or held for a minimum of 3 months prior to purchase.

More information

For more information the following link is recommended

Posted in: First home buyers

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