First Home Guarantee (FHG)
Federal scheme allowing eligible first home buyers to buy with just 5% deposit, with no Lender's Mortgage Insurance. Income caps apply ($125k single, $200k couple) and property price caps apply by location.
First home buyer pathways
More government help than most first home buyers realise
Buying your first home in Victoria is genuinely well-supported by both Federal and State Government schemes — but the eligibility criteria are precise, the deadlines move, and the wrong combination of choices can disqualify you from the best concession. Getting it right at the start matters.
At MortgageHQ, the first home buyer conversation always covers all the schemes available to you, the deposit pathway that suits your savings position, which lenders offer the best policy for your specific scheme combination, and how the longer-term plan (upgrade in 5 years? Investment after this?) should shape the structure today.
We also do the hand-holding. First home buyers haven't done this before — we walk through every step in plain English, from deposit and pre-approval through valuation, contract signing, finance condition, settlement and key handover.
Available schemes
Schemes & concessions you may be eligible for
First Home Owner Grant (FHOG)
Victorian Government grant of $10,000 for first home buyers purchasing or building a new home valued up to $750,000. Established (existing) homes are no longer eligible for FHOG in Victoria.
VIC stamp duty exemption (under $600k)
First home buyers purchasing in Victoria for $600,000 or less pay no stamp duty at all. A $597,000 purchase saves roughly $31,000 in stamp duty — significant deposit boost.
VIC stamp duty concession ($600–750k)
Sliding concession reducing stamp duty on first home purchases between $600,001 and $750,000. Above $750,000, full stamp duty applies.
Regional First Home Buyer Guarantee
Federal scheme for first home buyers purchasing in regional Australia — 5% deposit with no LMI. Property price caps higher in some regional locations than metro areas.
Family Home Guarantee
Federal scheme for single parents — 2% deposit with no LMI. Income caps and property price caps apply. Not strictly first-home only.
Deposit pathways
How much deposit do you actually need?
5% deposit (FHG)
If you qualify for First Home Guarantee, just 5% of the purchase price plus stamp duty, conveyancing and moving costs. On a $600k Melbourne property: roughly $30k + costs.
10% deposit (with LMI)
Standard deposit pathway for first home buyers who don't qualify for FHG. LMI premium applies (one-off premium $5–15k depending on loan size and LVR).
20% deposit (no LMI)
The traditional benchmark — no LMI, more lender options, best interest rates. On a $700k property that's $140k deposit plus costs.
Parental guarantee
Parent uses equity in their home to guarantee your loan — letting you buy with 0–5% deposit and no LMI. Parents' guarantee is typically released once the loan reduces below 80% LVR.
Gift deposit
Parents or family gift the deposit. Most lenders require a statutory declaration that funds are a gift (not a loan) and may require funds to be held for 3+ months before settlement.
Genuine savings
Most lenders want to see 5% of the deposit held in your own name for at least 3 months — proving you can save. Gifted or borrowed deposits don't satisfy genuine savings.
Our lender panel
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We compare lenders so you don't have to — major banks, second tiers, non-banks and specialist lenders.
Client stories
Real outcomes for real clients
★★★★★
"The team made what felt like a daunting process completely manageable. We secured a rate the bank wouldn't touch directly and were in our first home eight weeks later."
★★★★★
"After years of being told no by the majors for our self-employed structure, MortgageHQ found a solution. Approval came within a fortnight and on competitive terms."
★★★★★
"We refinanced our commercial property and unlocked equity for a second purchase — they structured the whole deal across two lenders. Saved us hundreds of basis points."
Answers
First home buyers — frequently asked questions
How much deposit do I really need as a first home buyer?
With First Home Guarantee scheme you need just 5% (with no LMI). Without FHG, most lenders want 10% (with LMI) or 20% (no LMI). Parental guarantee structures can get you in with as little as 0–5%. On a $700k property, those deposit amounts are roughly $35k, $70k or $140k.
What's the difference between FHG, FHOG and stamp duty concession?
All three are separate schemes that can be stacked. FHG (Federal) lets you buy with 5% deposit and no LMI. FHOG (Victorian) is a $10,000 grant for new-build first home purchases. The stamp duty exemption (Victorian) waives stamp duty entirely on first home purchases under $600k. Eligibility for each is independent — you can qualify for all three on the same purchase.
Am I still a first home buyer if my partner owned property previously?
Most schemes (FHG, FHOG, VIC stamp duty exemption) require both applicants to be first home buyers. If your partner has previously owned property, eligibility is generally lost for joint applications. Single-applicant applications are possible if you're the only one on the loan and title — but income/serviceability is then assessed on you alone.
Can I use FHG to buy a brand-new house and land package?
Yes — FHG is available for new builds, including house and land packages and off-the-plan apartments, in addition to established homes. Property price caps apply by location ($800k metro Melbourne, $650k regional Victoria as of current scheme rules — caps are subject to scheme review).
How long does the first home buyer process take?
Typical timeline: 1–2 weeks for pre-approval, then property search (highly variable — weeks to months), then 30–60 days from contract signing to settlement. From first conversation to keys in hand: usually 2–6 months depending on how quickly you find the right property.
What costs do I need to budget for beyond the deposit?
Stamp duty (often waived for FHB in VIC under $600k), conveyancing ($1,500–$2,500), building/pest inspection ($600–$1,000), Lenders Mortgage Insurance if applicable ($5–15k), loan establishment fees (often waived), and moving/utility connection costs. We'll model your total upfront cash requirement in the initial consultation.
Can my parents help me buy a first home?
Yes — multiple structures available: parental guarantee (parents' equity used to guarantee your loan, no cash from parents required), gift deposit (parents gift you the deposit), co-borrowing (parents on the loan and title with you), or genuine loan from parents (documented and tracked). Each has different implications. We'll discuss which fits your family's circumstances.
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