What is the Stamp Duty Concession for First-Home Buyers in Victoria and How Does a Broker Factor It In?

By Lowest Interest Rates Australia

Introduction

When I started looking to buy my first home in Victoria, I remember hearing people talk about “stamp duty” like it was some mysterious tax monster that lurks at settlement, waiting to pounce on your savings. And honestly, it kind of is — if you’re not prepared for it! But then I learned about the Stamp Duty concession for first-home buyers, and suddenly that monster didn’t seem quite so scary anymore.

Understanding how stamp duty works (and how to reduce or even eliminate it) can make a huge difference to your first-home budget. And when you work with a mortgage broker, they’ll factor this concession into your borrowing power and home loan strategy, helping you avoid costly surprises.

In this article, I’ll break down exactly what stamp duty is, how the Victorian concession works for first-home buyers, who qualifies, and how a broker helps make sure you get every dollar of benefit you’re entitled to. By the end, you’ll have a clear idea of how to use this concession to your advantage — and how a great broker (like those at Lowest Interest Rates) can help you make the most of it.

Table of Contents

1. What Is Stamp Duty in Victoria?
2. How the Stamp Duty Concession Works for First-Home Buyers
3. Who Is Eligible for the First-Home Buyer Stamp Duty Concession?
4. Full vs Partial Exemption — How Much Can You Save?
5. Example: How Much a First-Home Buyer Can Save in Melbourne
6. How a Mortgage Broker Factors Stamp Duty into Your Home Loan
7. Other First-Home Buyer Benefits in Victoria
8. How to Calculate Your Stamp Duty in Victoria
9. Common Mistakes First-Home Buyers Make with Stamp Duty
10. Final Thoughts — Get Help from Lowest Interest Rates

What Is Stamp Duty in Victoria?

Stamp duty (also called land transfer duty) is a state tax you pay when buying property in Victoria. It’s calculated based on the property’s value — and yes, it can add up quickly.

For example, if you buy a $700,000 home in Melbourne, your stamp duty could easily exceed $35,000 if you’re not eligible for concessions. That’s a big chunk of change, especially for first-home buyers who’ve already spent years saving for a deposit.

That’s why Victoria’s Stamp Duty concession for first-home buyers is such a lifesaver. It helps make buying your first home far more affordable, and it can directly affect how much you need to borrow — something your broker will calculate carefully when structuring your loan.

How the Stamp Duty Concession Works for First-Home Buyers

In Victoria, the first-home buyer stamp duty concession (or exemption) applies to eligible buyers purchasing a property valued under specific price thresholds.

Here’s how it works:

• No stamp duty (full exemption) — If the property is valued up to $600,000, you don’t pay any stamp duty.
• Discounted stamp duty (partial concession) — If the property is valued between $600,001 and $750,000, you receive a sliding discount on the amount of stamp duty payable.

Once the property value exceeds $750,000, the concession no longer applies, and you’ll need to pay full stamp duty.

This applies whether you’re buying an established home or building a new one — as long as it’s your first property and you meet the eligibility rules.

Who Is Eligible for the First-Home Buyer Stamp Duty Concession?

Not everyone automatically qualifies. To be eligible for the Victorian first-home buyer concession, you must meet the following requirements:

• You’re buying your first home in Australia.
• You’re an Australian citizen or permanent resident.
• You intend to live in the property as your principal place of residence for at least 12 months, within 12 months of settlement.
• The property’s dutiable value (usually the purchase price) is under $750,000.
• None of the buyers have previously owned a home or investment property in Australia.

Your mortgage broker will ask these questions during your first consultation to confirm your eligibility and make sure your loan calculations are based on the correct duty amount — so you don’t get caught off guard later.

Full vs Partial Exemption — How Much Can You Save?

Let’s break this down into numbers.

If you buy a property for:

• $550,000 → You pay $0 in stamp duty (full exemption).
• $650,000 → You get a partial concession. Stamp duty might drop from $34,000 to about $11,000.
• $725,000 → You get a smaller concession — maybe a few thousand dollars off the full duty.

This means a first-home buyer could save up to $30,000 or more through this program. That’s money you could use toward your deposit, furnishings, or even renovations once you move in.

Example: How Much a First-Home Buyer Can Save in Melbourne

Let’s meet Olivia, a first-home buyer purchasing an apartment in Brunswick for $620,000. Normally, her stamp duty would be around $32,000.

But since she qualifies for the first-home buyer concession, she only pays about $6,600 in duty — saving over $25,000. Her mortgage broker uses that saving to adjust her loan application, improving her borrowing power and helping her stay within her budget.

If Olivia had chosen a home for $595,000, she’d pay no stamp duty at all — an even better deal. Her broker helps her compare both options to see which fits her finances best.

How a Mortgage Broker Factors Stamp Duty into Your Home Loan

Now here’s where a good mortgage broker really earns their keep. When planning your first home loan, your broker doesn’t just focus on interest rates — they look at the entire cost picture, including stamp duty, fees, and potential savings through concessions.

1. Calculating Borrowing Power Accurately

Your broker will factor the correct stamp duty amount (after concession) into your upfront costs. This ensures your pre-approval is based on accurate numbers and prevents you from borrowing more than necessary.

2. Structuring Deposits and Grants

Brokers help you combine the stamp duty concession with other programs like the First Home Owner Grant (FHOG) or the First Home Guarantee. This can significantly reduce how much deposit you need to save.

3. Avoiding Hidden Surprises

Many first-home buyers accidentally budget for the full stamp duty amount — and then find out they didn’t need to. A broker ensures your loan calculations reflect the real, reduced costs — so you know exactly what to expect at settlement.

4. Comparing Lenders Based on the Concession

Some lenders handle government concessions differently in their internal systems. Your broker will know which lenders process them efficiently and which take longer — helping you avoid unnecessary delays.

5. Planning for Long-Term Costs

By saving you thousands upfront, a broker can help you allocate that money toward a lower LVR (Loan-to-Value Ratio), meaning better interest rates and potentially avoiding Lenders Mortgage Insurance (LMI).

Other First-Home Buyer Benefits in Victoria

The stamp duty concession is just one part of Victoria’s generous first-home buyer ecosystem. A mortgage broker will help you layer multiple programs for maximum benefit:

• First Home Owner Grant (FHOG): $10,000 toward new builds valued under $750,000.
• First Home Guarantee: Buy with as little as a 5% deposit and no LMI (government-backed).
• Homebuyer Fund (Shared Equity Scheme): The Victorian Government can co-purchase up to 25% of your home to reduce your repayments.
• Regional First Home Buyer Guarantee: Ideal for buyers outside Melbourne metro areas.

A skilled broker can combine these programs strategically to reduce both your upfront and long-term costs — all while finding the best loan product for your goals.

How to Calculate Your Stamp Duty in Victoria

The State Revenue Office (SRO) Victoria provides an online Stamp Duty Calculator where you can estimate exactly how much you’ll pay based on your property value, type, and eligibility.

Alternatively, your broker can calculate it for you instantly during your loan assessment. They’ll plug it into their software alongside your deposit, income, and savings to generate a complete picture of your financial readiness.

Here’s what a typical comparison might look like:

Knowing these numbers upfront helps you set a realistic purchase target and ensures your pre-approval is based on solid financial data.

Common Mistakes First-Home Buyers Make with Stamp Duty

Even with concessions available, it’s easy to miscalculate or overlook important details. Here are a few common pitfalls that a broker can help you avoid:

• Assuming automatic eligibility: You must apply for the concession — it’s not automatically applied at settlement.
• Not factoring in timing: You need to move into the property within 12 months and live there for at least 12 months to retain eligibility.
• Buying slightly over $750,000: Even $1 over the threshold disqualifies you from the concession — a broker can help you set a price cap.
• Forgetting additional costs: Legal fees, inspection costs, and mortgage setup fees still apply — your broker helps account for these in your total budget.

By working with a broker, you’ll avoid these simple but costly mistakes — and make sure every part of your financial plan lines up perfectly with the Victorian government’s requirements.

Final Thoughts — Get Help from Lowest Interest Rates

Buying your first home in Victoria is an exciting journey — and the stamp duty concession can make it a lot more affordable. But it’s not always simple to navigate. Understanding the rules, calculating the savings, and applying correctly all take careful planning.

That’s where your mortgage broker comes in. The team at Lowest Interest Rates understands every detail of Victoria’s first-home buyer incentives. They’ll factor your stamp duty concession, grants, and guarantees into your loan strategy to make sure you save as much as possible — and get into your new home sooner.

Whether you’re just starting to save or already house-hunting, it’s never too early to talk to a professional. A good broker will help you calculate your true costs, maximise your entitlements, and find a home loan that suits your lifestyle and goals.

Visit LowestInterestRates.com.au today to chat with a friendly Melbourne-based mortgage expert who can help you make the most of the stamp duty concession — and every other first-home buyer benefit available to you in Victoria.