First home buyers
Building your first home? Here's how it works.
Building new is a little different from buying an established home. Here are the steps in order, the government help that may apply, and the costs people often miss. This is general information. A licensed broker and the official websites confirm what you're eligible for.
Eligibility rules, income limits and price caps apply. Figures as at 31 October 2026.
Talk to me about your first homeThe steps, in order
- Know your budgetTalk to a licensed mortgage broker or lender about what you can borrow and which schemes you may qualify for. Many people get pre-approval before paying any deposit.
- Choose the homeSettle a floor plan and inclusions that suit how you live and fit the budget. With Homegroup you can adapt a design or plan one from scratch.
- Find land that fitsPick a lot that suits the home, with the land price kept in view from the start. I can help you compare estates.
- Sign the land contractYou pay a land deposit. Land in a new estate usually settles once it's titled, and any stamp duty on the land is paid at settlement.
- Sign the building contractA separate contract with the builder, with site costs explained line by line before you sign.
- The buildYour construction loan pays the builder in stages. You usually pay interest only on the amount drawn so far. The First Home Owner Grant is usually paid at the first progress payment.
- Handover and moving inA final inspection, then the keys. If you received the grant, you must live in the home for 12 months, starting within 12 months of completion.
Government help that may apply
Several of these can usually be combined. Each has its own rules, and a licensed broker or the scheme provider decides if you qualify.
First Home Owner Grant
$10,000 from the Victorian Government for a new home worth up to $750,000, land and build combined. When you build, it usually reduces what you borrow for the build rather than your upfront deposit.
Stamp duty
Eligible first home buyers pay no stamp duty up to $600,000, with a concession up to $750,000. With separate land and build contracts, duty is normally charged on the land price only.
Help to Buy
The Australian Government can take up to a 40% share of a new home, so your loan is smaller. You need a deposit of at least 2%. Income limits are $103,000 single and $165,000 joint or single parent.
5% Deposit Scheme
The government guarantees part of your loan, so you can buy with a 5% deposit without lenders mortgage insurance. You own all of your home. It's offered through participating lenders.
Price caps for Help to Buy and the 5% Deposit Scheme: $950,000 in Melbourne and regional centres including Geelong, $650,000 in the rest of Victoria (land and build combined). Citizenship, residency and other rules apply.
Costs people often miss
The house and land price isn't the only cost. Plan for these early so the budget holds:
Before and during the build
- Conveyancer or lawyer fees
- Loan fees and the bank's valuation
- Stamp duty on the land, if it's above the exemption
- Insurance and council rates once the land settles
- Rent while you wait, and interest on each stage drawn
After handover
- Landscaping, fencing and a driveway, if not included
- Window furnishings and floor coverings, if not included
- Connecting power, gas and internet
- Moving costs and furniture
Every quote is different, so check what yours includes. How to read a new home quote.
How I can help
I can help you choose the home, find land that fits it, and go through every line of your Homegroup quote. I'm not a mortgage broker, so I'll introduce you to a licensed broker who knows these schemes and construction loans. They confirm what you can borrow and what you're eligible for.
General information only, not financial advice. Rules and figures change, so check the official sources: Help to Buy for building a new home (firsthomebuyers.gov.au) · Help to Buy property price caps · 5% Deposit Scheme property price caps · First Home Owner Grant (State Revenue Office Victoria) · First home buyer duty exemption or concession (SRO) · Housing Australia: Help to Buy from 1 July 2026.