First Home Buyer Loans Melbourne & Geelong
Buying your first home in 2026 means more government support than at any point in Australian history — three active federal schemes, a $10,000 Victorian grant, and stamp duty exemptions that could collectively save you $50,000 or more before you even start comparing lenders. The challenge is not finding help. It is knowing which combination of schemes you genuinely qualify for, which lender suits your specific situation, and how to move quickly enough when the right property appears.
At Integrated Finance Group, first home buyers are one of our core specialisations. Brian and Frank have guided hundreds of first-time buyers — from the initial “can we even afford this?” conversation through to settlement day. We compare 30+ lenders, manage every step of the application, and are paid by the lender you choose — so our service costs you nothing.
Every first home buyer scheme active in 2026
The federal government significantly expanded first home buyer support from late 2025. Below is every scheme currently active, what it offers, and a direct link to the official government source for eligibility and price cap details.
Australian Government 5% Deposit Scheme
Buy with a 5% deposit (or just 2% for eligible single parents and legal guardians) with no Lenders Mortgage Insurance. From 1 October 2025 the scheme was renamed and expanded — income caps were removed entirely and waitlists eliminated. The Government guarantees the gap between your deposit and 20%, replacing LMI at no cost to you. Property price caps by suburb still apply.
Official eligibility & property price caps ↗Australian Government Help to Buy Scheme
Opened December 2025. The Government contributes up to 30% of the purchase price for an existing home, or up to 40% for a new build — dramatically cutting your loan size and deposit requirement. Minimum 2% deposit required. Income caps: $100,000 individual; $160,000 joint applicants or single parents. 10,000 places per year. You own 100% of the property; the Government’s equity stake is repaid when you sell or buy them out.
Official eligibility & how to apply ↗First Home Super Saver Scheme (FHSS)
Save your deposit inside superannuation at the concessional tax rate of 15% — far lower than your marginal income tax rate. Contribute up to $15,000 per financial year and release a total of up to $50,000 (plus associated earnings) to use as a deposit. Can be used alongside the 5% Deposit Scheme or Help to Buy. Administered by the ATO.
Official FHSS information ↗First Home Owner Grant (Victoria)
A $10,000 cash grant from the Victorian Government for eligible first home buyers purchasing or building a new home — including off-the-plan and substantially renovated dwellings. Not available for established homes. Property price caps and residency requirements apply. Applied at settlement through your lender. Managed by the State Revenue Office.
SRO Victoria — FHOG eligibility ↗First Home Buyer Stamp Duty Exemption
Victorian first home buyers are fully exempt from stamp duty on properties up to $600,000. A partial concession applies on purchases between $600,001 and $750,000. On a $590,000 purchase this saving alone is worth approximately $31,000. Applies to both new and established homes purchased as your principal place of residence.
SRO Victoria — duty exemption details ↗ⓘ Stacking schemes: how combinations work
Many first home buyers qualify for multiple benefits simultaneously. A new home under $600,000 could unlock: $10,000 FHOG + full stamp duty exemption + 5% Deposit Scheme (no LMI). The FHSS can run alongside either federal scheme. The Help to Buy Scheme cannot be combined with other government guarantees or state shared equity schemes, but can sit alongside stamp duty concessions and the FHSS. We map your full entitlement at your first consultation at no charge.
2026 scheme comparison: which one suits your situation?
| Scheme | Min Deposit | Income Cap? | New Builds Only? | LMI Saved? | Official Source |
|---|---|---|---|---|---|
| 5% Deposit Scheme | 5% (2% single parents) | ✓ None since Oct 2025 | ✗ New & established | ✓ Yes | firsthomebuyers.gov.au ↗ |
| Help to Buy | 2% | ✗ $100k/$160k | ✗ New & established | ✓ Yes (smaller loan) | firsthomebuyers.gov.au ↗ |
| FHSS | n/a (savings vehicle) | ✓ None | ✗ New & established | ✗ Boosts deposit | firsthomebuyers.gov.au ↗ |
| Victorian FHOG | n/a (cash grant) | ✓ None | ✓ New builds only | ✗ Reduces cost | sro.vic.gov.au ↗ |
| Vic Stamp Duty Exemption | n/a (tax saving) | ✓ None | ✗ New & established | ✗ Reduces upfront cost | sro.vic.gov.au ↗ |
Scheme terms correct as of June 2026. Eligibility rules, property price caps, and income thresholds can change — always verify at the official government links above. We cross-check current availability at every consultation.
How much deposit do you actually need?
The minimum deposit depends on which scheme you use and whether a family guarantor is available. Here is a clear breakdown of every scenario:
| Deposit Scenario | How It Works | LMI Payable? | Best Suited To |
|---|---|---|---|
| 2% deposit | Help to Buy (shared equity) or single parents via 5% Deposit Scheme | ✓ No | Income-eligible buyers; single parents |
| 5% deposit | 5% Deposit Scheme — govt guarantees LMI, no income cap | ✓ No | Most first home buyers wanting to enter market sooner |
| 5–19% (no scheme) | Standard loan; LMI applies unless using guarantor | ✗ Yes | Buyers not using a scheme who want broader lender choice |
| 0–5% via guarantor | Parent uses home equity to secure part of your loan | ✓ No | Buyers with supportive family who own property with equity |
| 20%+ deposit | Standard loan, full lender choice, no scheme required | ✓ No | Buyers who have saved strongly or are selling an asset |
⚠ What is LMI and what does it really cost?
Lenders Mortgage Insurance (LMI) protects the lender if you default — not you. It is charged when your deposit is below 20% of the purchase price. Example costs:
- $500,000 purchase / 5% deposit: LMI typically $15,000–$22,000
- $700,000 purchase / 5% deposit: LMI typically $22,000–$32,000
- $900,000 purchase / 10% deposit: LMI typically $18,000–$28,000
LMI can be capitalised into your loan, increasing total interest paid over the life of the loan. The 5% Deposit Scheme eliminates this cost entirely — with no income cap since October 2025.
Family guarantor loans — buying with parental support
If your parents own property with sufficient equity, they may be able to act as guarantor for part of your loan. A family guarantee can allow you to borrow 100% of the purchase price while avoiding LMI entirely — with little or no cash deposit required from you.
How a family guarantee works
- Your parents offer a portion of their home as additional security — typically covering 20–25% of your purchase price
- This removes the LMI requirement and can allow you to buy with minimal cash deposit
- Your parents’ property is at legal risk if you cannot meet repayments — all parties must fully understand this obligation
- The guarantee is typically released once you have built enough equity (LVR at or below 80%), usually within a few years of purchase
- We match you to lenders with the most appropriate guarantee structures for your family situation
👤 Our approach: full transparency before any application
We provide a thorough briefing to both buyer and guarantor before any application is lodged. We model what happens under different scenarios — including payment difficulty — and ensure both parties are making a fully informed decision. A family guarantee done well is one of the most powerful first home buyer strategies available in 2026.
New build vs established home — what it means for your grants
| Factor | New / Off-the-Plan | Established Home |
|---|---|---|
| Victorian FHOG ($10,000) | ✓ Available | ✗ Not available |
| Stamp duty exemption (VIC) | ✓ Yes (up to $600k) | ✓ Yes (up to $600k) |
| 5% Deposit Scheme | ✓ Available | ✓ Available |
| Help to Buy govt contribution | ✓ Up to 40% | ✓ Up to 30% |
| Timeline to move in | 6–18+ months (construction) | Typically 30–90 days |
| Hidden defect risk | Low — builder structural warranty | Higher — inspection essential |
| Depreciation if renting later | High — new fixtures and fittings | Limited depending on age |
The right choice depends on your timeline, suburb, and which grants apply. We model the total cost of both scenarios at your first consultation.
How the first home buyer process works with IFG
Free strategy call (30 minutes)
We discuss your income, deposit, existing debts, and property goals. You leave knowing your approximate borrowing capacity, which schemes you qualify for, and what total purchase costs to budget for. No obligation, no commitment.
Financial fact-find & document collection
We gather payslips, tax returns, bank statements, and ID. We assess your borrowing power across 30+ lenders and identify any serviceability or credit issues before they become problems in an application.
Scheme eligibility mapping
We confirm exactly which federal and Victorian schemes you qualify for, cross-check current property price caps for your target area, and identify the combination that gives you the best financial outcome.
Lender selection & pre-approval
We present the top 2–3 lender options based on rate, features, scheme participation, and valuation reliability in your target suburb. Pre-approval typically takes 5–10 business days and is valid for 90 days.
Property search & offer
You search with confidence knowing your exact limit. When you find the right property, we review the contract price against your pre-approval. For established homes, we strongly recommend a building and pest inspection before exchanging contracts.
Formal application & approval
Once you have a signed contract of sale, we submit the formal application and manage all lender queries, valuations, and conditions on your behalf. Formal approval typically takes 3–10 business days.
Settlement — you collect the keys
We liaise with your conveyancer and the lender to ensure everything is ready on settlement day. If you qualify for the Victorian FHOG, we ensure it is applied correctly at settlement through your lender.
Full cost of buying your first home — what to budget for
| Cost Item | Typical Range | Notes for First Home Buyers |
|---|---|---|
| Deposit | 2–20% of purchase price | Minimum varies by scheme and lender |
| Stamp duty (VIC) | $0 to ~$31,000 | Full exemption to $600k; partial concession to $750k for eligible FHBs |
| Conveyancing / legal | $800 – $2,500 | Varies by solicitor and transaction complexity |
| Building & pest inspection | $400 – $900 | Strongly recommended for all established homes |
| Lender valuation | $0 – $500 | Many lenders absorb this cost; check product details |
| Loan application / settlement fees | $0 – $1,000 | Many lenders waive for FHBs; varies significantly |
| LMI | $0 – $35,000+ | Eliminated by 5% Deposit Scheme, 20% deposit, or guarantor |
| Home & contents insurance | $1,200 – $3,000 per year | Required by lender from settlement day |
| Moving costs | $500 – $3,000 | Depends on distance, volume, and DIY vs professional removalist |
We prepare a full personalised cost estimate at your first consultation so there are no surprises on settlement day.
First home buying in Melbourne and Geelong — local market context
- Stamp duty $600k threshold: The full exemption covers a solid portion of unit, apartment, and townhouse stock in Melbourne’s inner north, outer suburbs, and greater Geelong — but most houses in Melbourne’s inner ring now sit above $600,000. Suburb strategy is critical.
- 5% Deposit Scheme price caps vary by area: Properties in the Geelong LGA may qualify under different caps to Melbourne metro. Current caps by suburb are listed at firsthomebuyers.gov.au ↗. We check these before every application.
- New apartments in the inner north: Off-the-plan purchases in Brunswick, Coburg, Fawkner, and Carlton North can unlock both the FHOG ($10,000) and the stamp duty exemption — making new builds highly competitive against established stock in the under-$600,000 range.
- Geelong growth corridors: Lara, Highton, Belmont, and Armstrong Creek regularly feature entry-level house and land packages under $600,000 — potentially unlocking the full stamp duty exemption, the FHOG, and the 5% Deposit Scheme simultaneously.
- Melbourne auctions require pre-approval: At Melbourne auctions, bids are unconditional. Bidding without confirmed pre-approval is not just risky — it can be catastrophic. We ensure your pre-approval is current and solid before you attend any auction.
- Lender valuation risk: Some Melbourne suburbs have seen significant price movement. We match you to lenders with strong, consistent valuation track records in your target area, reducing the risk of a short valuation derailing your purchase.
Our team services buyers across Melbourne’s inner north (Coburg, Brunswick, Fawkner, Pascoe Vale, Carlton North), north-west (Essendon, Moonee Ponds, Strathmore, Keilor, Taylors Lakes, Avondale Heights), and the Geelong region (Geelong, Highton, Belmont, Lara, Newtown).
Why use IFG as your first home buyer broker?
Going directly to a bank means you see one lender’s products. A broker compares 30+, manages your paperwork and scheme applications, and advocates for your application when the lender raises questions. For first home buyers new to the process, this guidance and advocacy is particularly valuable. And because we are paid a commission by the lender you select, the service costs you nothing.
First home buyer FAQs
- How much deposit do I need as a first home buyer in Melbourne?
- As little as 2% is possible through the Help to Buy Scheme, or 5% with the 5% Deposit Scheme (no income caps since October 2025). In practice, 10–20% gives you broader lender choice and eliminates LMI. We model every deposit scenario so you can make a fully informed decision.
- Does the 5% Deposit Scheme still have income caps in 2026?
- No. From 1 October 2025 income caps were removed entirely. There are also no waitlists and no LMI payable under the scheme. Property price caps by location still apply — check current caps at firsthomebuyers.gov.au ↗.
- What is the Help to Buy Scheme and how does shared equity work?
- The Help to Buy Scheme (opened December 2025) allows the Government to contribute up to 30% of an existing home purchase or 40% of a new build. You retain 100% ownership and live in the property, but the Government holds an equity stake proportional to their contribution. You repay their share when you sell, buy them out, or refinance. Minimum 2% deposit; income caps are $100,000 individual or $160,000 joint/single parent. 10,000 annual places available.
- How much is the Victorian First Home Owner Grant?
- The Victorian FHOG is $10,000 for eligible first home buyers purchasing or building a new home (including off-the-plan). It is not available for established dwellings. Property price caps apply — confirm current eligibility at sro.vic.gov.au ↗.
- Do first home buyers pay stamp duty in Victoria?
- Victorian first home buyers are fully exempt from stamp duty on properties up to $600,000 and receive a partial concession on $600,001–$750,000. Standard duty rates apply above $750,000. Confirm current thresholds at sro.vic.gov.au ↗.
- What is LMI and how can I avoid it?
- Lenders Mortgage Insurance protects the lender if you default — not you. It applies when your deposit is below 20% and can add $8,000–$35,000+ to your loan cost. Avoid it by: using the 5% Deposit Scheme (government guarantee replaces LMI), saving a 20% deposit, or using a family guarantor arrangement.
- Can I use a family guarantor to avoid LMI and buy with a smaller deposit?
- Yes. A parent (or eligible family member) can offer equity in their home as additional security for your loan, eliminating LMI and allowing purchase with little or no cash deposit. Real legal obligations apply for the guarantor — we explain all risks in plain English before any application is lodged.
- What is the First Home Super Saver Scheme?
- The FHSS lets you make voluntary contributions to your super fund and withdraw them (plus earnings) to use as a home deposit. Contributions are taxed at the concessional 15% rate rather than your marginal tax rate. Save up to $15,000 per year, release up to $50,000 total. Can be combined with the 5% Deposit Scheme. Details at firsthomebuyers.gov.au ↗.
- Should I buy new or established as a first home buyer?
- The Victorian $10,000 FHOG is only available on new builds. Help to Buy also contributes more for new homes (40% vs 30%). Stamp duty exemptions and the 5% Deposit Scheme apply to both. Established homes are available sooner; new builds unlock more grants. We model the total cost of both scenarios before you commit to a property type.
- Can I qualify for multiple schemes at the same time?
- Often yes. A new home purchase under $600,000 could unlock: Victorian FHOG ($10,000) + full stamp duty exemption + 5% Deposit Scheme (no LMI). The Help to Buy Scheme cannot be combined with other government guarantees or state shared equity schemes, but can be stacked with stamp duty concessions and the FHSS. We map your full entitlement at your first consultation.
- Can I get pre-approval before I start looking?
- Yes, and we strongly recommend it — especially before any Melbourne auction where bids are unconditional and no finance clause is permitted. Pre-approval lasts 90 days and we manage the entire process for you, from document collection to lender submission.
- How long does the first home buyer process take?
- From first consultation to settlement, typically 10–16 weeks including property search time. Pre-approval alone takes 5–10 business days. We provide a realistic, personalised timeline at your first meeting and keep you updated at every stage.
- What costs should I budget for beyond the purchase price?
- Stamp duty (potentially $0 for eligible VIC FHBs), conveyancing ($800–$2,500), building and pest inspection for established homes ($400–$900), loan and settlement fees (varies), home and contents insurance, and moving costs. We prepare a full personalised cost estimate at your first consultation.
- What documents do I need to apply for a first home buyer loan?
- Typically: two forms of ID, two recent payslips, last two years of tax returns or PAYG summaries, three months of bank statements showing genuine savings, details of existing debts, and a signed Home Buyer Declaration for scheme applications. We provide a personalised document checklist as your first step.
- Why use a mortgage broker instead of going directly to a bank?
- A broker compares 30+ lenders simultaneously — not just one bank’s products — to find the loan that genuinely suits your situation. We manage all paperwork, handle scheme applications, liaise with lenders, and coordinate with your conveyancer. We are paid by the lender you choose, so our service costs you nothing. For first home buyers new to the process, this guidance is especially valuable.
📚 Useful reads for first home buyers
Ready to take your first step?
Book a free, no-obligation strategy call with Brian or Frank. We’ll confirm your borrowing capacity, map every scheme you qualify for, and give you a clear picture of what buying your first home looks like in 2026 — no jargon, no pressure.
Or call us directly: Brian 0401 333 636 · Frank 0413 032 898