Eligibility depends on which specific support scheme you apply for, as Victoria offers several options rather than a single grant. The core complications are the strict property price caps, income limits, and occupancy requirements that vary across these programs.
Stamp duty exemptions and concessions
Buyers purchasing a home under $600,000 receive a full stamp duty exemption, saving up to $31,000. Those purchasing between $600,000 and $750,000 are eligible for a sliding concession. This makes detached 3 to 4 bedroom homes in Officer and Pakenham particularly accessible for first home buyers.
Deposit and income support
The First Home Guarantee allows eligible buyers to enter the market with a 5 percent deposit and no LMI. Additionally, the Help to Buy scheme allows the government to co-purchase up to 40 percent of a home for eligible low-to-middle income earners. These schemes reduce the upfront capital required to secure a property in the South East.
Occupancy and property rules
To qualify for stamp duty exemptions, the property must be your first home and cannot be an investment. You are required to move into the property within 12 months of settlement and live there for at least 12 continuous months. Failing to meet these residency requirements can void the exemption.
The honest reality
Two rate rises have tightened what first home buyers can borrow, making the search more restrictive. Furthermore, eligibility criteria, income caps, and property price caps are reviewed regularly, meaning your eligibility can change before you settle.
Questions to consider
- Does your target property in Officer or Pakenham fall under the $600,000 threshold to secure the maximum stamp duty saving?
- How have recent rate rises impacted your actual borrowing capacity compared to your initial budget?
- Have you confirmed your specific income and price cap eligibility with a mortgage broker experienced in Victorian schemes?
Talk to KR Peters for a straight-talking appraisal with no obligation.
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Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.