First home buyers

We will help more first home buyers get into the market sooner.

New house

Jon and Anne are first home buyers purchasing a new two-bedroom house in the western suburbs of Melbourne for $575,000. They would have paid $14,785 in stamp duty, partly offset by their First Home Owner Grant. Under the Government’s proposal they will pay no stamp duty at all – allowing them to put their savings towards paying off their new home.

Existing house

Rashid and Emma are first home buyers purchasing an existing townhouse in the middle suburbs of Melbourne for $650,000. They would have paid $34,070 in stamp duty, equivalent to more than 5% of their home value. Under the Government’s proposal, their stamp duty will be reduced to $11,357 saving the couple $22,700.

Regional Victoria

Brad and Ying are looking at buying a new home in Ballarat as their first home purchase. The home is worth $400,000. Previously the couple would have paid $8,185 in stamp duty. However, under the new arrangements, they will no longer pay stamp duty at all.

Additionally, as a result of the doubling of the First Home Owner Grant they will receive $20,000 to help pay off their home.

Share equity

Jack works in a bank earning $65,000 a year. He has been saving to buy his first home, but has been unable to scrape enough money together for a deposit.

Jack applies to HomesVic and, with its assistance, he is able to buy a property valued at $460,000.

For Jack to avoid paying Lenders Mortgage Insurance on this property, he would need to save a deposit of $92,000. Instead, HomesVic takes a 25% equity stake of $115,000, with Jack paying a 5% deposit of $23,000 – a quarter of what he would otherwise have needed to save.

It means Jack only needs to take out a loan of $322,000 on the property, making his repayments around $1,900 a month – significantly lower than they would have been.