First Home Owner Grant South East Melbourne, The 2026 Guide
If you're buying your first home in South East Melbourne, the $10,000 First Home Owner Grant is one piece of a larger puzzle, and understanding exactly what it covers changes how you plan your deposit. The grant is real money, but it applies to new homes only, it has a price cap, and in a market where every approved suburb's house median sits above $950,000, that cap shapes which properties actually qualify.
The good news is that the unit market here tells a different story. Twenty-two of the twenty-eight suburbs EverLend works across have a unit median under the $950,000 federal scheme cap, and several sit comfortably under $600,000, where transfer duty is waived entirely for first home buyers. For most first-time buyers in this area, the grant is a realistic part of an off-the-plan or new-unit strategy rather than a house purchase.
EverLend helps first home buyers across South East Melbourne work out how the grant, duty concessions and federal deposit schemes fit together, comparing across 60+ lenders. The first home loan structure you choose determines how far that $10,000 actually goes.
Key takeaways
- Victoria's FHOG is $10,000 for new homes under $750,000.
- Every approved suburb's house median exceeds the $950,000 scheme cap.
- The grant pairs naturally with the federal 5% Deposit Scheme for units.
Does the First Home Owner Grant apply to South East Melbourne properties in 2026?
Yes, the Victorian First Home Owner Grant of $10,000 applies to eligible new homes in South East Melbourne, provided the contract price does not exceed $750,000. The grant is paid by the State Revenue Office Victoria and is available for new dwellings only, including newly built houses, townhouses, apartments and units that have never been previously sold or occupied. It does not apply to established homes.
Source: State Revenue Office Victoria.
What does the Victorian First Home Owner Grant actually cover?
The FHOG is a one-off payment of $10,000, made at settlement or when a new build reaches practical completion. It is paid directly toward your purchase rather than as a cash deposit into your account, so it reduces the net amount you need to bring to settlement rather than sitting in your bank account first.
At least one applicant must be an Australian citizen or permanent resident at settlement. At least one applicant must also move into the home as their principal place of residence within twelve months, and live there for a continuous twelve-month period. New Zealand citizens are not eligible on their own since the residency condition changed.
What qualifies as a new home for the FHOG:
- › Brand-new builds: a dwelling built on vacant land that has never been occupied or sold as a residential property.
- › Off-the-plan apartments and units: a new strata-titled dwelling purchased before or during construction, where the contract price is under $750,000.
- › Substantially renovated homes: a home that has been completely rebuilt by the vendor, meeting specific SRO criteria. This is the least common pathway and requires careful assessment.
- › Homes built to replace demolished ones: where the original structure was demolished and replaced with a new dwelling, the replacement qualifies.
"We see first home buyers assume the grant applies to any property they haven't owned before. It doesn't — the 'new home' rule is the one that catches people out most often, especially when they've fallen in love with an established terrace in Windsor or Prahran."
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
What other government schemes can first home buyers use in South East Melbourne?
The FHOG works alongside several federal schemes, and the combination you're eligible for depends on whether the property is new or established, and on the purchase price.
The main pathways for first home buyers here:
- › First Home Guarantee (5% Deposit Scheme): 5% deposit, no LMI, no income test. South East Melbourne cap is $950,000. First home buyers only. Can apply alongside the FHOG on a new build.
- › Family Home Guarantee: single parents, 2% deposit, no LMI. You do not need to be a first home buyer. South East Melbourne cap is $950,000.
- › Help to Buy: federal shared-equity scheme, up to 40% government equity on a new home, up to 30% on an established one. Income caps apply: $103,000 for singles, $165,000 for couples or single parents. South East Melbourne cap is $950,000. Cannot be combined with a state shared-equity scheme.
- › Transfer duty exemption: full duty exemption on properties with a dutiable value of $600,000 or less; a partial concession applies up to $750,000. Covers both new and established homes for first home buyers. Not limited to new builds like the FHOG.
- › First Home Super Saver Scheme: withdraw up to $50,000 of eligible voluntary super contributions (up to $15,000 per year) to put toward a deposit. ATO-administered.
Source: Housing Australia and State Revenue Office Victoria.
How much can first home buyers borrow in South East Melbourne, and where does the grant fit?
CoreLogic data shows that unit medians across South East Melbourne range from $470,000 in Ripponlea to $935,000 in Bentleigh, with suburbs like Cheltenham at $700,000 and Carnegie at $630,000 sitting squarely under the $950,000 federal cap. Those are the suburbs where the grant, the duty concession and the 5% Deposit Scheme can all apply on the same purchase.
On a $700,000 new unit purchase, a 5% deposit is $35,000. The $10,000 FHOG reduces the cash you need to bring to settlement, and the duty exemption (at $700,000, above the $600,000 threshold but inside the $750,000 concession ceiling) reduces your upfront cost further. The combination means a buyer who has saved $35,000 to $45,000 can realistically approach a lender, particularly with a guarantor or via the federal scheme.
Houses are a different story. Every house median in the approved suburb set exceeds $950,000, with the cheapest being Moorabbin at $1,280,000 and Cheltenham at $1,298,750. The FHOG's $750,000 cap excludes every house in the area as purchased stock. A new house-and-land package further from the city is the only house pathway where the grant applies.
Whether you're buying in Cheltenham- Moorabbin or Carnegie across South East Melbourne, how a lender reads your deposit sources and schemes together changes your borrowing number significantly.
Source: CoreLogic (via YIP, June 2026).
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When does the First Home Owner Grant not make sense as a strategy?
The FHOG is worth taking if you qualify, but building a buying strategy around it often narrows your options more than the $10,000 justifies. If you're committed to buying in an established suburb like Elwood or South Yarra, or set on a house anywhere in the area, the grant simply isn't in play. Chasing a qualifying new apartment in a suburb that doesn't suit your life, or stretching to an off-the-plan development with a longer settlement timeline, costs more than $10,000 in rent, risk and inconvenience.
The off-the-plan risk is the specific one to weigh carefully. If the market softens between contract and completion, the lender's valuation at completion may come in below the contract price, and the buyer covers the shortfall in cash. On a project with an eighteen-month build timeline, the $10,000 grant may not offset a valuation gap if the market moves. The transfer duty concession and the federal scheme are available on established stock too, and for many buyers those are the more reliable levers.
How do mortgage brokers help first home buyers navigate grants in South East Melbourne?
The lender choice decides more than the rate here. Three policy differences move the outcome for first home buyers using schemes and grants, and they're not visible on a comparison site.
- › How FHOG timing interacts with loan approval: some lenders treat the $10,000 as part of your genuine savings; others require it to be held separately and confirmed before settlement. Getting this wrong delays approval.
- › Which lenders participate in the 5% Deposit Scheme: not every lender on the market is an approved scheme provider, and panel access determines which combination of rate and scheme is actually available to you.
- › Off-the-plan assessment policies: lenders differ significantly in how they handle pre-approval, valuation and formal approval on off-the-plan contracts with long settlement timelines. A lender whose policy suits a twelve-month build is not the same as one whose policy suits a standard purchase.
Comparing across the panel finds the combination that fits your purchase type, your deposit makeup and your timeline — not just the lowest advertised rate.
"Where a buyer has the $10,000 grant, the duty concession and the 5% scheme all potentially in play on the same purchase, I'd want to confirm the lender's treatment of the grant proceeds before submitting anything — because that one policy difference can hold up settlement by weeks if it's not addressed upfront."
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
What approval challenges do first home buyers face when claiming the FHOG?
Where buyers lose ground:
- › The $750,000 cap and the $950,000 scheme cap don't align: a new unit priced between $750,001 and $950,000 qualifies for the 5% Deposit Scheme but not the FHOG. Buyers often conflate the two caps and assume the grant applies to everything the scheme covers.
- › Genuine savings requirements: lenders assessing a 5% deposit application under the federal scheme want to see that the deposit was accumulated, not gifted in a lump sum. The FHOG itself doesn't count as genuine savings in most lender policies.
- › Residency obligation not understood at application: buyers who buy and then rent the property out immediately breach the FHOG's twelve-month principal-place-of-residence condition. The SRO can and does recover the grant in these cases.
- › Off-the-plan valuation shortfall: if the bank's completion valuation comes in below the contract price, the buyer funds the gap in cash. This risk is higher on long-build projects and is not offset by the grant.
Frequently Asked Questions
Does the Victorian FHOG apply to established homes in South East Melbourne?
No. The Victorian FHOG is for new homes only and does not apply to established properties. First home buyers purchasing an established home can still access the transfer duty exemption and the 5% Deposit Scheme, but not the $10,000 grant.
Can first home buyers in South East Melbourne combine the FHOG with the 5% Deposit Scheme?
Yes, on a qualifying new build or off-the-plan purchase. The property must be under both caps: $750,000 for the FHOG and $950,000 for the federal scheme. In South East Melbourne, that means a new unit or townhouse, not a house.
Is the Victorian Homebuyer Fund still available for first home buyers?
No. The Victorian Homebuyer Fund is closed to new participants. The only shared-equity pathway currently open to South East Melbourne buyers is the federal Help to Buy scheme, subject to income and price caps.
Does transfer duty apply if a first home buyer purchases a unit under $600,000 in South East Melbourne?
No duty applies at all for eligible first home buyers purchasing a property with a dutiable value of $600,000 or less in Victoria. Several suburbs here have unit medians in that range, including St Kilda, Prahran and Oakleigh.
Should first home buyers in South East Melbourne use a mortgage broker or go direct to a lender?
A mortgage broker, every time. Not every lender participates in the federal schemes, and lenders differ on how they treat the FHOG proceeds at settlement. A broker who works with scheme-approved lenders across the panel finds the right combination, not just the right rate.
Your Next Steps
For first home buyers in South East Melbourne, the FHOG is a genuine $10,000 contribution, but its $750,000 new-home cap means it works as part of a carefully matched strategy, not as a standalone windfall. The suburbs where units sit under that cap, the federal schemes that can stack alongside it, and the lender policies that determine how it's treated at settlement all need to line up before the grant actually moves the dial.
Ready to find out which lenders will work best for your first home purchase? Contact the EverLend team or call 03 7036 3356. We'll canvas our 60+ lender panel and find the most suitable options for your circumstances.
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External Resources
EverLend · South East Melbourne · Ever Lend Pty Ltd (ACN 625 080 515), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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