VIC first home buyers
VIC First Home Owner Grant
The First Home Owner Grant in Victoria is a one-off payment of $10,000 from the state government to eligible first home buyers who buy or build a new home, never an established one, valued within the scheme's cap.
This page sets out who qualifies, which properties are covered, how the grant interacts with duty relief, and what all of it means specifically for buyers looking around Lysterfield, with every figure linked to the State Revenue Office.
What It Is Worth Right Now
The payment is a flat $10,000, one per eligible transaction, and it applies at the same amount whether the home sits in metropolitan Melbourne or out past the Dividing Lines. Many buyers still arrive believing there is a bigger regional grant on offer, because for years there was, and that belief changes where people search. It should not. The separate regional scheme is closed and applies to no current contracts, so the honest position is one figure, one state, no geographic bonus. What varies by location is not the grant but whether you can find eligible new stock under the value cap, and that is the question the rest of this page works through.
Who Qualifies
Eligibility is assessed on the applicants, their history and the transaction itself, and the SRO's eligibility page lists the full conditions. The main ones:
Natural persons only
Age and residency
No prior ownership
No prior grant
New home condition
Occupancy undertaking
Application window
Which Properties It Covers
The eligible property types are narrower than many buyers expect, so the table below sets what qualifies against what does not:
| Property | Grant eligible? | Notes |
|---|---|---|
| New house, townhouse, apartment or unit never sold or occupied | Yes | Must not have been leased or used for short-term stays |
| Substantially renovated home | Yes | Renovation must be the whole building, not a partial one |
| Home built to replace a demolished one | Yes | The replacement dwelling must be new |
| Off-the-plan purchase | Yes | Cap tested on the contract price |
| Established home | No | No grant at any price point |
Every eligible type must fall under the $750,000 value cap, with the off-the-plan exception noted above.
Why The Rule Bites Here
This is the section that matters locally, because the grant's new-home rule collides with what this suburb actually is. Lysterfield is not a suburb of new stock. It is a suburb of established houses on large blocks, which produces a very specific gap between where the grant pays and where buyers actually want to live.
The Stock Is Not Eligible
Around 99.8 per cent of dwellings here are separate houses and only 0.3 per cent are flats or apartments, which means the established homes that dominate the suburb attract no grant at any price. Buyers who want a Lysterfield address are largely buying outside the scheme.
New Supply Is Thin
Dwelling approvals here have run at 93 over the past five years across roughly 2,058 total dwellings, and the suburb sits in the 23rd state percentile for building activity. Eligible new stock exists, but it is a trickle rather than a pipeline, so competition for it is concentrated.
The Value Cap Squeezes
The median household here carries a mortgage repayment of about $2,200 a month and earns a median weekly income of $2,754, at the 98th state income percentile. That is a suburb where well-priced new townhouses under the cap get absorbed quickly, and anything substantial pushes past $750,000.
What It Means For Your Search
In practice, grant-eligible buyers face a choice: chase the occasional new dwelling in the foothills, or look at neighbouring corridors where new builds cluster, or accept an established home and rely on the duty relief instead. Each path changes your finance strategy, so decide before you sign a contract.
How It Stacks With Duty Relief
The grant and the first home buyer duty exemption are separate schemes, run by the same office but with their own thresholds, and the interaction is where the real value sits. The key points:
Full duty exemption to $600,000
Concession band to $750,000
Duty relief covers established homes
One use only
How it works
How To Apply And When Money Arrives
Lodgement is straightforward in mechanics, but the timing rules around occupancy and deadlines are where applications are lost. The SRO's overview covers the process end to end.
- 1
Through Your Lender
Most applicants lodge through an approved agent, which in practice is your lender, at the same time as your home loan application, so the grant is claimed inside the finance process rather than after it.
- 2
Directly With The SRO
If your lender is not an approved agent or the transaction falls outside their process, you lodge directly with the State Revenue Office using the forms published on their site, with evidence of eligibility attached.
- 3
The Payment Itself
The SRO does not publish fixed payment dates, so plan your cash flow without assuming a settlement-day payment. The grant is paid once the eligible transaction completes, whether that is a purchase settling or a build finishing.
- 4
The Deadline
You have 12 months from settlement or completion of the build to lodge, and missed deadlines are not recoverable, so diarise it at settlement rather than trusting memory a year later.
Worth knowing early
What Gets An Application Knocked Back
The SRO's knock-back list is consistent year after year, and nearly every rejection traces to an assumption made before the contract was signed. Watch for:
- Buying established The most common failure. An established home never qualifies for the grant, regardless of price, condition or how first it is for you.
- A leased "new" home A dwelling that looks brand new but has been tenanted or listed on short-stay platforms before your purchase fails the never-occupied test.
- Over the cap A contract price above $750,000 ends the application, and off-the-plan buyers should test the contract price, not the projected finished value.
- Occupancy shortfalls Moving in late, or leaving before 12 continuous months are up, can cost you the grant you already received.
- History issues A partner's prior ownership or earlier grant disqualifies the application, even where your own history is clean.
- Wrong structure Applying through a company or trust fails outright, so confirm the purchase structure before signing.
- Missed deadline Applications lodged after the 12-month window are refused.
Where we work
Areas We Service
From Lysterfield we work with first home buyers across the surrounding foothills and outer east, including Upper Ferntree Gully, Upwey, Belgrave South, Narre Warren East, Narre Warren North and Lysterfield South, and each of those suburb pages carries its own local lending detail.
Questions answered
Frequently Asked Questions
How much is the VIC First Home Owner Grant worth?
The grant is a one-off payment of $10,000. One amount applies statewide, because the separate regional grant scheme is closed and does not apply to current contracts.
Can I get the grant on an established home?
No. The grant covers new homes never sold or occupied, substantially renovated homes and off-the-plan purchases. An established home attracts no grant at any price.
What is the property price cap for the grant?
The property must be valued at up to $750,000. For off-the-plan purchases, the cap applies to the contract price rather than the finished value.
Do I have to live in the property to keep the grant?
Yes. At least one applicant must move in as their principal place of residence within 12 months of settlement or completion, and stay for 12 continuous months.
Is the grant different from stamp duty relief?
Yes, they are separate schemes with separate thresholds. The duty exemption applies to homes up to $600,000, with a concession band up to $750,000, and covers established homes too.
How long does the grant take to arrive?
The SRO does not publish fixed payment dates. Payment is made once the eligible transaction completes, and you must apply within 12 months of settlement or completion.
Mortgage broker for Lysterfield and the suburbs around it
Get In Touch
If you are weighing the grant against an established purchase, or you want the duty arithmetic worked for a specific property, talk to Your Mortgage Broker Lysterfield about your first home finance. Call (03) 9122 8521 for a conversation with Your Mortgage Broker Lysterfield, who works under a licensed brokerage, with all fees are disclosed in writing before anything is signed.