Buying your first home in Frankston means you can access a range of Victorian and federal benefits that reduce the upfront cost and make ownership more affordable.
The two main Victorian benefits are the stamp duty concession and the first home owner grant. They work differently and apply to different property types, so knowing which one applies to your situation matters before you start looking.
Victorian Stamp Duty Concessions for First Home Buyers
First home buyers in Victoria pay no stamp duty on properties valued up to $600,000, with a sliding concession applying between $600,001 and $750,000. This concession applies to both new and established homes, provided the property will be your principal place of residence.
Consider a buyer who purchases an established apartment in Frankston for $580,000. Without the concession, stamp duty would be around $30,000. With the first home buyer concession, they pay nothing. That entire amount stays available for furniture, moving costs, or an offset account buffer.
The concession is claimed through your conveyancer or solicitor during settlement. You do not need to apply separately or wait for approval, but you do need to meet eligibility requirements including that you or your spouse have not previously owned property in Australia.
The Victorian First Home Owner Grant for New Builds
The Victorian First Home Owner Grant is $10,000 and applies only to new homes valued up to $750,000. The grant does not apply to established homes, regardless of price.
A new home includes a property purchased from a builder or developer that has not been previously occupied, or a home you build yourself on vacant land. Substantially renovated properties may also qualify if the renovation meets specific criteria set by the State Revenue Office.
You cannot claim both the stamp duty concession and the first home owner grant on the same property. In most Frankston scenarios, the stamp duty saving delivers more value than the $10,000 grant. If you are buying new and the property is valued over $600,000, you may benefit from both the grant and a partial stamp duty concession.
Federal Low Deposit Options Through the 5% Deposit Scheme
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a deposit of as little as 5% without paying lenders mortgage insurance. Housing Australia guarantees the difference between your deposit and 20% of the property value, which removes the LMI cost that would otherwise apply.
Applications are made through one of 31 participating lenders, including three major banks and 28 non-major lenders. You cannot apply directly to Housing Australia. Income caps and annual place limits were removed from October 2025, which opened the scheme to a much larger group of buyers. Property price caps still apply, with the Melbourne cap set at $950,000.
In Frankston, where a mix of apartments, townhouses and freestanding homes sit comfortably within that cap, the scheme is widely relevant. It can be combined with the Victorian stamp duty concession or first home owner grant, which means you can enter the market sooner without waiting years to save a 20% deposit.
Your broker can confirm which lenders on the panel suit your income type and property choice. Not all participating lenders offer the same products or assess income the same way, so matching your situation to the right lender improves your chance of approval.
Using the First Home Super Saver Scheme to Build Your Deposit
The First Home Super Saver Scheme allows you to make voluntary super contributions and apply to release eligible amounts toward your deposit. You can release up to $15,000 from any one financial year, with a total cap of $50,000.
Voluntary concessional contributions are taxed at 15% rather than your marginal income tax rate, which makes this an effective way to save faster if you have surplus income to contribute. You need to obtain a determination from the Australian Taxation Office before signing a purchase contract, so the process requires forward planning.
This scheme works alongside the Victorian concessions and the 5% Deposit Scheme. In our experience, buyers who combine super savings with a low deposit option can bring forward their purchase timeline by 12 to 18 months without needing a gift or guarantor.
Choosing Between Help to Buy and the 5% Deposit Scheme
Help to Buy launched in December 2025 and allows the Australian Government to contribute up to 40% of the purchase price for a new home and up to 30% for an existing home. You retain ownership and occupy the property, but the government holds an equity stake proportional to its contribution.
The scheme requires a minimum 2% deposit and applies income limits of $100,000 for individuals and $160,000 for joint applicants. Property price caps vary by location.
You cannot combine Help to Buy with the 5% Deposit Scheme. The decision between them depends on your income, savings, and how you feel about shared ownership. Help to Buy suits buyers with lower deposits and income within the cap, but the equity share means you repay the government's contribution when you sell or refinance. The 5% Deposit Scheme requires a larger deposit but gives you full ownership from settlement.
For most Frankston buyers we work with, the 5% Deposit Scheme offers more flexibility and avoids the complexity of shared equity. Help to Buy makes sense in specific situations where the income cap is not a barrier and the deposit required is otherwise out of reach.
When to Apply for Pre-Approval Before You Start Looking
Pre-approval gives you a clear budget and shows sellers you are ready to move quickly. In Frankston, where stock close to the station or the foreshore moves faster than stock further from amenities, having a pre-approval in place makes a practical difference when you find the right property.
Pre-approval also confirms which benefits you are eligible for and how they combine. Your broker will assess your income, deposit, and property type to structure the application around the relevant scheme. If you are using the 5% Deposit Scheme, pre-approval confirms you can access a participating lender and that your income and property choice meet the criteria.
Pre-approval is not a guarantee, but it gives you confidence to make an offer and move to contract without waiting weeks for finance.
Call one of our team or book an appointment at a time that works for you. We will walk through your deposit, income, and property type to identify which combination of benefits applies to your situation and help you structure your home loan application around them.
Frequently Asked Questions
Can I use the Victorian stamp duty concession and the first home owner grant together?
No, you cannot claim both the stamp duty concession and the first home owner grant on the same property. The stamp duty concession applies to both new and established homes up to $750,000, while the grant applies only to new homes up to $750,000.
Does the 5% Deposit Scheme work with Victorian first home buyer benefits?
Yes, the Australian Government 5% Deposit Scheme can be combined with the Victorian stamp duty concession or first home owner grant. This allows you to purchase with a low deposit and access state benefits at the same time.
How much stamp duty do first home buyers pay in Victoria?
First home buyers pay no stamp duty on properties valued up to $600,000. A sliding concession applies between $600,001 and $750,000, after which standard rates apply.
What is the difference between Help to Buy and the 5% Deposit Scheme?
Help to Buy requires a 2% deposit and the government takes an equity share in your property, while the 5% Deposit Scheme requires a 5% deposit but you own the property outright. You cannot combine the two schemes.
When should I apply for pre-approval as a first home buyer?
Apply for pre-approval before you start looking at properties. It confirms your budget, shows sellers you are ready to proceed, and clarifies which benefits you can access based on your income, deposit, and property type.
