How to Stack FHOG, First Home Guarantee, and Off-the-Plan Concession in Victoria

Stacking Victoria's first home buyer schemes is not automatic — some combinations work, some conflict, and the right combination depends entirely on whether you are buying new or established, your household income, the purchase price, and how much deposit you have saved. Here is the definitive breakdown: the $10,000 First Home Owner Grant (FHOG), the federal First Home Guarantee, the off-the-plan stamp duty concession, and the federal Help to Buy shared equity scheme each operate independently, but they overlap and interact in ways that can save — or cost — tens of thousands of dollars.

The Four Schemes at a Glance

Which Combinations Stack

Combination 1: FHOG + First Home Guarantee (most common) This is the most powerful stack for new home buyers. The $10,000 FHOG is a state cash grant. The First Home Guarantee is a federal mortgage guarantee that lets you buy with 5% deposit without paying LMI. These are entirely independent programs from different levels of government — they do not conflict. A buyer purchasing a new house-and-land package at $680,000 in Craigieburn can apply for both simultaneously via their lender (for the Guarantee) and the State Revenue Office (for the FHOG).

Result: $10,000 cash grant + LMI waiver (typical LMI saving at 5% deposit on $680,000 is $13,000–$16,000 depending on lender) = approximately $23,000–$26,000 in combined value, on top of any stamp duty concession in the $600,000–$750,000 range.

Combination 2: Off-the-Plan Stamp Duty Concession + First Home Buyer Stamp Duty Exemption These stack mechanically. The off-the-plan concession reduces the dutiable value by deducting future construction costs. Once dutiable value is determined, the first home buyer exemption (zero duty under $600,000) or concession (tapered duty to $750,000) is applied to that reduced figure. On a $620,000 apartment where $430,000 represents construction costs, dutiable value becomes $190,000. At $190,000, you pay zero duty under the first home buyer exemption — even though the purchase price was above the $600,000 threshold.

This is the most mathematically powerful combination available to Victorian first home buyers buying apartments.

Combination 3: Off-the-Plan Concession + FHOG + First Home Guarantee All three can apply simultaneously to eligible off-the-plan purchases. To trigger all three: the property must be a brand-new apartment or townhouse in a strata subdivision (FHOG and off-the-plan concession requirements), under $750,000 (FHOG cap), and purchased with a 5% deposit via a participating lender (First Home Guarantee requirement). The buyer receives: $10,000 FHOG cash, the LMI waiver, and dramatically reduced stamp duty via the construction cost deduction.

Combination 4: First Home Guarantee + Stamp Duty Exemption Available to both new and established home buyers. The Guarantee eliminates LMI with 5% deposit. The stamp duty exemption applies if the purchase price is under $600,000. These are fully compatible. A buyer purchasing an established home at $590,000 with 5% deposit can access both: no LMI, zero stamp duty.

Which Combinations Conflict or Cannot Be Stacked

Help to Buy + First Home Guarantee: Cannot be combined The federal Help to Buy scheme and the First Home Guarantee are both Housing Australia programs — you access one or the other, not both. Help to Buy requires only 2% deposit and involves the government taking a 30–40% equity share. The First Home Guarantee requires 5% deposit and involves no equity share. You choose based on which reduces your cash requirement and long-term cost more.

FHOG + Established homes: Does not apply The FHOG is strictly for new builds or substantially renovated homes that have never been sold or occupied. Established homes are ineligible regardless of price or buyer circumstances. A buyer targeting an established home in Ballarat at $590,000 accesses the stamp duty exemption and potentially the First Home Guarantee — but not the FHOG.

Help to Buy + income above caps: Does not apply Help to Buy has strict income limits: $100,000 annual taxable income for individuals, $160,000 for couples and single parents. These are assessed on taxable income, not gross income. A household earning above these thresholds cannot access Help to Buy even if the property price is within the cap.

Off-the-Plan Concession + Detached houses: Does not apply The off-the-plan stamp duty concession applies to apartments, units, and townhouses in strata subdivisions with common property. Detached houses and house-and-land packages do not qualify.

The Help to Buy Trade-off: Low Deposit Now vs Equity Loss Later

Help to Buy's 2% deposit requirement sounds attractive against the First Home Guarantee's 5%. The difference on a $700,000 property is $21,000 in upfront cash. But Help to Buy involves the federal government taking up to 30% equity in an existing home or 40% in a new build. When you sell, refinance, or buy out the government's share, you repay the equity proportion — including a share of any capital gain.

On a $700,000 property that grows to $950,000 over 10 years (a $250,000 gain), a 30% government equity stake means repaying $210,000 + the government's original $210,000 contribution = $420,000. Compare this to the First Home Guarantee path: you owned 100% of the $250,000 gain, paid LMI upfront (approximately $13,000), and your total equity growth is unreduced.

This is not an argument against Help to Buy — for buyers who genuinely cannot save a 5% deposit, the 2% path is the only entry. But it illustrates why the stacking decision requires financial modelling, not just eligibility checking. The Victoria First Home Buyer Guide includes worked examples at $580,000, $680,000, and $620,000 off-the-plan that show total cash-to-close and 10-year equity outcomes for the main combinations.

The Victorian Homebuyer Fund Has Closed

Important for buyers who researched Victorian schemes in 2024 or early 2025: the Victorian Homebuyer Fund (VHF), which offered state government shared equity of up to 25% of the purchase price, permanently closed to new applicants in September 2025. It has been superseded by the federal Help to Buy scheme, which commenced on 5 December 2025. Any advice referencing the VHF as an available option is out of date.

Who This Is For

• Victorian first home buyers with a budget of $500,000–$950,000 who want to understand exactly which schemes apply before their mortgage broker processes the applications
• Buyers comparing new house-and-land packages (FHOG eligible) versus established homes (stamp duty exemption, no FHOG) and need the financial math side by side
• Anyone considering Help to Buy who wants to understand the equity-sharing mechanics before committing
• First home buyers with limited savings (5% deposit or less) deciding between the First Home Guarantee and Help to Buy

Who This Is NOT For

• Buyers who have already chosen their property type and scheme and just need their lender to process the applications — your conveyancer and mortgage broker handle the mechanics once the decision is made
• Property investors — all these schemes are principal place of residence requirements only
• Buyers purchasing above $950,000 in metropolitan Melbourne — no government schemes (FHOG, Guarantee, Help to Buy) apply above this cap for metro properties

Frequently Asked Questions

Can I use the FHOG and the First Home Guarantee at the same time?

Yes. The FHOG is a state grant administered by the State Revenue Office. The First Home Guarantee is a federal mortgage guarantee administered by Housing Australia through participating lenders. They operate independently. A buyer purchasing a new home under $750,000 with a 5% deposit from a participating lender can access both simultaneously, receiving the $10,000 cash grant and the LMI waiver.

Does using Help to Buy affect my stamp duty calculation in Victoria?

Stamp duty in Victoria is calculated on the full dutiable value of the property — not on your equity share. Even if the government contributes 30% under Help to Buy, you pay duty on the full purchase price. On a $700,000 property, the first home buyer concession applies (approximately $24,713 duty). The Help to Buy contribution reduces your upfront cash needs but does not affect the duty calculation.

Can I use the off-the-plan stamp duty concession with Help to Buy?

The off-the-plan concession reduces the dutiable value of the property. Help to Buy can be applied to off-the-plan purchases if the property meets the income caps and price caps. However, Help to Buy and the First Home Guarantee cannot be combined — so you would need to choose between Help to Buy's 2% deposit path or the Guarantee's 5% deposit path with the LMI waiver. The guide includes worked examples that compare both options for off-the-plan purchases.

How do I apply for the FHOG in Victoria?

The FHOG is processed by your lending institution (for financed purchases) or directly through the State Revenue Office (for cash purchases or owner-builder situations). Your lender submits the application on your behalf at settlement. The $10,000 is typically paid at settlement or during construction. You must meet residency requirements: at least one applicant must occupy the property as their principal place of residence for a continuous period of at least 12 months, beginning within 12 months of settlement or construction completion.

My income is $105,000. Can I still access any Victoria first home buyer schemes?

Yes. You can access the First Home Guarantee (no income cap since October 2025), the $10,000 FHOG for new builds, the first home buyer stamp duty exemption, and the off-the-plan stamp duty concession. You cannot access Help to Buy (income cap is $100,000 individual). The First Home Guarantee + FHOG combination on a new build under $750,000 is likely your strongest stack.

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