Your deposit is only part of the cash you need. Here are the costs Victorian first home buyers should plan for, and the concessions that can reduce them.
Stamp duty (land transfer duty)
Stamp duty is usually the largest upfront cost after the deposit. Victoria offers first home buyers a full exemption below a set property value and a concession on a sliding scale above it, up to an upper limit. The thresholds and eligibility rules change from time to time, so always check the current settings with theState Revenue Office Victoria.
First home owner grant
Victoria’s First Home Owner Grant generally applies to new homes, including house-and-land packages and off-the-plan purchases, under a value cap. Established homes usually don’t qualify. Again, the SRO sets the current amount and conditions.
Low-deposit options and LMI
With less than a 20% deposit, most lenders charge lenders mortgage insurance (LMI), which can be a significant cost. Government-backed schemes, run nationally through Housing Australia, can let eligible buyers purchase with a smaller deposit without paying LMI. Places, price caps and eligibility rules apply. Some professions can also access LMI waivers with certain lenders.
The federal Help to Buy shared equity scheme goes further for eligible buyers: the government contributes part of the purchase price in exchange for a share of the property, so you need a smaller deposit and a smaller loan. Income and price caps apply.
Government schemes open, close and change. Victoria’s own Homebuyer Fund, for example, has closed to new applicants. We check which schemes are open and which you qualify for when we assess your purchase.
The smaller costs that add up
- Conveyancing or legal fees for the contract and settlement
- Building and pest inspections before you commit
- Land titles registration fees for the transfer and mortgage
- Lender fees, such as application or valuation fees
- Adjustments for council rates, water and owners corporation fees
- Insurance, with building cover usually required from settlement
How we help
We build all of this into one budget before you start bidding, check which concessions and schemes you may qualify for, and arrange pre-approval so you know your limit.