First Home Buyer in Australia: 5 Government Support Programs Many Don't Know About (Victoria 2026)

For many Vietnamese living in Australia, buying their first home often comes with a familiar thought: you need a 20% deposit to qualify for a bank loan.

However, the reality in Australia – especially in Victoria – is that the government has quite a few support programs for first home buyers to help them enter the property market sooner.

If understood and utilised correctly, buyers can significantly reduce their upfront costs, potentially saving tens of thousands of dollars. Below are the important support programs that first home buyers in Australia should know about.

1. First Home Guarantee – Buy a Home With Just 5% Deposit

One of the most popular programs currently is the First Home Guarantee (formerly called the First Home Loan Deposit Scheme).

Typically, if a buyer only has less than 20% deposit, the bank will require them to pay Lenders Mortgage Insurance (LMI) – insurance for the loan that can cost tens of thousands of dollars.

With the First Home Guarantee program:

• Buyers only need a 5% deposit
• No LMI required
• The Australian government guarantees the shortfall compared to the 20% threshold

This helps many first home buyers purchase a home years earlier, instead of waiting to save up a full 20% deposit.

Additionally, there is the Family Home Guarantee for single parents, allowing them to buy a home with as little as 2% deposit.

2. Help to Buy Scheme – Government Co-invests With Buyers

The Help to Buy program is a shared equity scheme where the Australian government co-invests when buyers purchase a home.

Under this mechanism:

• The government can contribute up to 40% of a new home's value
• Or 30% for existing homes

Buyers only need a minimum deposit of 2% and borrow the remainder from the bank.

Benefits of this program include:

• Reduced bank borrowing
• Lower interest costs in the early stages
• Easier market access for buyers

However, this program has annual limits and requires meeting certain income conditions.

3. First Home Owner Grant in Victoria – $10,000 Support

In Victoria, first home buyers can receive the First Home Owner Grant (FHOG) worth $10,000 when purchasing eligible new or newly built homes.

This payment:

• Is direct government support
• Does not need to be repaid
• Can be used to help with upfront costs when buying a home

Key conditions include:

• The buyer must be a first home buyer
• The home must be new or newly built
• Property value must not exceed the specified threshold

4. Stamp Duty Exemption or Reduction for First Home Buyers

One of the largest costs when buying property in Australia is stamp duty (transfer duty).

However, in Victoria, first home buyers may be eligible for:

• Full stamp duty exemption if the property value is under $600,000
• Reduced stamp duty if the property value is between $600,000 and $750,000

This support can help buyers save tens of thousands of dollars, depending on the property value.

This is one of the most important policies that first home buyers should check before deciding to purchase.

5. First Home Super Saver Scheme (FHSSS)

A lesser-known but very useful tool is the First Home Super Saver Scheme.

This program allows buyers to:

• Make voluntary contributions to their superannuation fund
• Then withdraw up to $50,000 to use as a deposit for their first home

The benefit of FHSSS is that contributions to super are often tax-advantaged, helping buyers save more effectively than putting money in a regular savings account.

First Home Buyers in Australia: Barriers Are No Longer as High

Looking at the overall picture, first home buyers in Australia today have quite a few support tools:

• Deposit can be as low as 5%
• No Lenders Mortgage Insurance required
• Can receive the $10,000 First Home Owner Grant
• May be exempt from or receive reduced stamp duty
• Additional savings tool through superannuation

These policies help many first home buyers enter the property market sooner, instead of waiting years to accumulate enough savings.

Advice for First Home Buyers in Melbourne

Although there is much government support available, the most important things when buying your first home are:

• Prepare a suitable financial structure
• Understand the conditions of each program
• Choose the right area and property type suited to your long-term goals

Buying your first home is not just a major financial decision, but also an important step in your long-term wealth-building plan in Australia.