First Home Buyer Grants: A Comparison of NSW vs. VIC Schemes and Eligibility 2026

Taking the plunge into property ownership is one of the biggest financial decisions you'll ever make. Fortunately, both the New South Wales (NSW) and Victorian (VIC) state governments offer generous grants and concessions designed to make that initial step less daunting for first-time buyers.

However, the rules, caps, and eligibility criteria vary significantly between states, especially regarding the crucial Stamp Duty exemptions. This comprehensive guide breaks down the core schemes in NSW (focused on Sydney) and VIC (focused on Melbourne) to help you understand what you're entitled to and where you might save the most.

Image Focus: A young couple happily holding the keys to their new house, with a blur of state symbols in the background.

Section 1: Core Eligibility Requirements (Applies to Both States)

Before diving into the state-specific differences, you must meet a set of universal criteria to qualify as a 'First Home Buyer' for most government schemes in Australia:

• Individual Status: You must be an Australian citizen or permanent resident.
• Age: You must be over 18 years old.
• Prior Ownership: Neither you nor your spouse/partner must have previously owned or co-owned residential property in Australia.
• Occupancy: You must intend to live in the home as your principal place of residence (PPR) for a continuous period, usually for at least 6 or 12 months, starting within 12 months of settlement.
• Property Type: The scheme rules differ for new builds vs. established homes, which is a major factor in the state comparison below.

Section 2: NSW First Home Buyer Assistance Scheme (Sydney Focus)

The NSW scheme, run by Revenue NSW, focuses heavily on reducing or eliminating Stamp Duty (officially known as transfer duty).

1. First Home Buyer Grant (FHOG) – Up to \$10,000

• Amount: \$10,000 grant.
• Eligibility: Applies **only** to the purchase of a new home (including off-the-plan) or a newly built home.
• Price Cap: The total value of the property must not exceed **\$600,000**.
• **New Construction/Owner-Builder Cap:** The combined value of the land and the home must not exceed **\$750,000**.

2. Stamp Duty Concessions (Transfer Duty)

This is often the most valuable saving in NSW, as it applies to both new and established homes:

• Full Exemption: Applies to new and existing homes valued up to **\$800,000**.
• Concessional Rate: Applies to new and existing homes valued between **\$800,000 and \$1,000,000**.
• Crucial Difference: Unlike VIC, NSW offers Stamp Duty relief on **established homes** up to \$1,000,000.

NSW Key Takeaway:

The NSW scheme strongly favours established homes, with significant stamp duty savings on properties up to \$1,000,000, covering most homes in Sydney's surrounding suburbs. However, the \$10,000 FHOG is limited to new builds under \$600,000.

For more on how state taxes work, see: Sydney vs. Melbourne: How to Calculate Stamp Duty on an Investment Property.

Section 3: VIC First Home Buyer Schemes (Melbourne Focus)

Victoria's approach offers higher grant money in regional areas but has stricter rules on Stamp Duty exemptions for established properties.

1. First Home Owner Grant (FHOG) – Up to \$20,000

• Regional Amount: \$20,000 grant (for homes built in regional Victoria).
• Metropolitan Amount: \$10,000 grant (for homes built in Melbourne/Metro areas).
• Eligibility: Applies **only** to the purchase of a new home (including off-the-plan, new build, or substantial renovation).
• Price Cap: The total value of the property must not exceed **\$750,000**.

2. Stamp Duty Concessions (Land Transfer Duty)

Victoria’s Stamp Duty rules focus on the price cap but do **not** distinguish between new and established properties, though the highest savings are capped lower than NSW:

• Full Exemption: Applies to new and established homes valued up to **\$600,000**.
• Concessional Rate: Applies to new and established homes valued between **\$600,000 and \$750,000**.
• Crucial Difference: The VIC scheme cuts off concessions at \$750,000, lower than NSW's \$1,000,000 limit.

VIC Key Takeaway:

The VIC scheme offers a higher grant (\$20,000) if you buy or build a new home in regional Victoria. The Stamp Duty relief applies equally to established homes but the cut-off point of \$750,000 is lower than NSW, impacting Melbourne buyers more significantly than regional ones.

Section 4: State-by-State Comparison Table (NSW vs. VIC)

Feature	NSW (New South Wales)	VIC (Victoria)
Maximum FHOG Grant	\$10,000	\$10,000 (Metro) / \$20,000 (Regional)
FHOG Property Cap	\$600,000	\$750,000
Grant Applies To	New Homes Only	New Homes Only
Stamp Duty Exemption Max	\$800,000	\$600,000
Stamp Duty Concession Max	\$1,000,000	\$750,000

Section 5: Beyond Grants – Other Government Schemes

In addition to state grants, first home buyers in both states should be aware of two key Federal schemes designed to help you secure a mortgage with a lower deposit:

The First Home Guarantee (FHBG)

This scheme (formerly the First Home Loan Deposit Scheme) allows eligible first home buyers to purchase a home with a **5% deposit**, without paying Lender’s Mortgage Insurance (LMI). The Federal Government guarantees the remainder of the 20% deposit. This is a crucial saving, as LMI can cost tens of thousands of dollars.

The First Home Super Saver Scheme (FHSSS)

The FHSSS allows you to save for your first home inside your Superannuation fund using concessional contributions, which are taxed at a lower rate (15%) than your marginal tax rate. You can release up to **\$50,000** of voluntary contributions (plus earnings) to put towards your deposit. This is a powerful, yet complex, tax-effective savings tool that every buyer should investigate. (See: Superannuation Contribution Caps Explained: A Simple Guide for the Self-Employed Aussie).

Conclusion: Planning is Key to Maximising Savings

Choosing whether to buy in NSW or VIC involves more than just lifestyle; it involves complex financial trade-offs based on the price of the property you intend to buy. If your target is an established home between \$750,000 and \$1,000,000, NSW offers a superior Stamp Duty advantage.

However, if you are building a new home, especially in a regional area, Victoria's higher \$20,000 grant may be a decisive factor. Before committing to a pre-approval or an area, you should fully understand all state and federal schemes available to you. Consulting a broker or financial planner early in the process is essential to navigate the cap thresholds successfully. (See: Financial Planner: When an Everyday Australian Should Hire One).

Understanding government assistance is only half the battle; managing the resulting debt requires a long-term strategy. (For guidance on debt management, see: Negative Gearing 101: A Simple Guide).

Disclaimer: This information is accurate as of 2026 based on publicly available data, but government schemes are subject to frequent change. Always confirm current eligibility and caps with the relevant state government authority (Revenue NSW or State Revenue Office Victoria) and consult a qualified mortgage broker or conveyancer.