Get a grant, maximise your deposit and save thousands upfront.

First home buyers can combine three government support programs to buy with only 5% deposit, get a $10k grant while avoiding Lenders Mortgage Insurance and Stamp Duty.* Eligibility criteria and conditions apply.

Melbourne and Geelong first home buyers can get into the market sooner with just a 5% deposit - no LMI, no delays - thanks to the government’s fast-tracked home loan guarantee.

If you’ve been wanting to get into your first own home, now is a great time to act.

Singles, Couples and Single Parents can combine Australian and Victorian Government support to save thousands of dollars upfront and reduce the time they need to save for a deposit.

An expanded Home Guarantee Scheme from 1 October 2025 means any Australian first home buyers need only a 5% deposit to get started.

For Single Parents, the Family Home Guarantee, part of the Home Guarantee Scheme, means you can purchase with only a 2% deposit.

The Scheme helps buyers avoid the expensive Lenders Mortgage Insurance (LMI) costs often required by lenders when a deposit amount is under 20% of the purchase price. But under the Scheme, the Government guarantees the 15-18% of the deposit amount.

Even better, Victorian residents may also be eligible for the $10,000 First Home Owners Grant (FHOG) and the Stamp Duty exemption or concession.

 

Example Scenario – Couple (renting), $650,000 house and land package

1. Eligible buyers (single or couple) need a 5% deposit = $32,500
2. Legals and fees (~$5K) plus deposit = $37,500* approx.
3. Victorian First Home Owner Grant (FHOG) = $10,000*

• 5% Deposit of $32,500 combined with $10K FHOG means just $27,500 personal savings needed for deposit assessment (legals and fees costs covered). *
• Assume loan approval from participating lender = $617,500 (95% of purchase price $650K)

Additional Upfront Savings:

• Lenders Mortgage Insurance (LMI) exemption - save $24,500 approx.
• Stamp Duty exemption - save $15,500 approx.

Total upfront savings could be more than $40,000*

 

Get started - find out what’s possible! Our Team is ready to take you through the homebuying process and help make your new home dream a reality much sooner than you think! Contact the Manor Lakes Sales Team to find out more.

Example Scenario – Single parent (renting), first home buyer, $550,000 house and land package

1. Eligible buyer saved 2% deposit = $11,000
2. Legals and fees (~$5K) plus deposit = $16,000* approx.
3. Victorian First Home Owner Grant = $10,000*

• 2% Deposit of $11,000 combined with $10K FHOG means just $6,000 personal savings needed for deposit assessment (legals and fees costs covered).*
• Assume loan approval from participating lender = $539,000 (98% of purchase price $550K)

Additional Upfront Savings:

• Lenders Mortgage Insurance exemption - save $20,752 approx.
• Stamp Duty exemption - save $12,586 approx.

Total upfront savings could be more than $33,000*

What’s changed?

It’s the first year since 2021 we’ve seen the Reserve Bank of Australia reduce the underlying cash rate, and mortgage interest rates have followed.

From 1 October 2025, the existing Home Guarantee Scheme is expanding from 50,000 places every 12 months to unlimited places available for eligible home buyers.

The scheme’s property price caps will lift for Melbourne and Geelong, from $800,000 to $950,000.

Income caps for singles and couples will be removed.

A single person buying a home with the scheme before 1 October 2025 would need to earn under $120,000 a year to be eligible, and a couple combined could earn up to $200,000 a year, but these caps will be removed from 1 Oct 2025, opening the benefits to even more homebuyers.

Three government support programs working in your favour:

1. Home Guarantee Scheme (Australian Government)

Two key features; you only need 5% deposit because the Government gives the bank a guarantee and, if eligible, you don’t require Lenders Mortgage Insurance (LMI). LMI would typically be required for deposit amounts under 20% of the purchase price.

This means you’ll be able to get a mortgage faster because you don’t have to save for a bigger deposit.

You’ll also avoid the cost of LMI, possibly $10,000+ which would be added to your mortgage and repaid over time or charged upfront as well as your deposit.

From 1 October 2025, the current income caps (single and couple) will be removed the purchase price of a home in Melbourne and Geelong will increase to $950,000.

2. First Home Owner Grant of $10k (Victorian Government)

The Victorian First Home Owner Grant (FHOG) provides a $10,000 payment to eligible first-time buyers building or purchasing a new home. It’s designed to make entering the property market more achievable by reducing upfront costs

If eligible, buyers can have this $10,000 amount be used toward the Lender’s deposit assessment for determining borrowing capacity, meaning you can shorten the time you need to save for a deposit.

The grant is typically paid at the first progress payment (i.e., the first draw of your construction loan).

Established homes are not eligible.

3. Stamp Duty exemption (Victorian Government)

Stamp Duty is a tax paid when a property in Victoria is purchased. It must be paid upfront in full unless there’s an exemption or a concession available.

Singles or couples building a new home, where the land price does not exceed $600,000, are exempt from Stamp Duty.

Stamp Duty is also referred to as Land Transfer Duty.

Get started - find out what’s possible! Our Team is ready to take you through the homebuying process and help make your new home dream a reality much sooner than you think! Contact the Manor Lakes Sales Team to find out more.

Compare Deposit Amounts:

House Price	20% deposit	5% deposit Home Guarantee	2% deposit Family Home Guarantee
$500,000	$100,000	$25,000	$10,000
$600,000	$120,000	$30,000	$12,000
$650,000	$130,000	$32,500	$11,000
$700,000	$140,000	$35,000	$14,000
$800,000	$160,000	$40,000	$16,000

Contact your mortgage broker or lender to discuss current mortgage interest rates and understand how much you may be able to borrow and what the repayments could be if your application is successful.

Frequently Asked Questions

Where can I read more about these government programs and schemes?

There is great information on government websites:

• Home Guarantee Scheme, Housing Australia
• First Home Owner, State Revenue Office Victoria

Are we still eligible if we want to buy land then build on it?

Yes, if you meet the other eligibility criteria.

Government assistance allows for house and land, or ‘land and build’ as they sometimes call it.

While several different services need to be involved along the way, getting in touch with our specialist Land Sales Consultants is a great place to start.

Eligibility information:

• Home Guarantee Scheme eligibility tool
• First Home Owner Grant and Stamp Duty exemption information

Do I have to use a specific lender or bank?

Yes, for the Australian Government’s Home Guarantee Scheme there’s a list of participating lenders, including some of the big banks, available here (Housing Australia).

The stamp duty exemption and First Home Owner Grant is run by Victoria’s State Revenue Office, rather than any of the banks.

Add these to your list of questions for your mortgage broker or loan provider and they’ll go through specifics.

Can we choose our builder?

Yes. If you’re buying land and would like to build, you can choose a builder.

There are some criteria that the builder must meet for some of the government programs.

Here is the Home Guarantee Scheme’s ‘land and build’ criteria in their Information Guide (Section 3).

Specific land lots may also be tied to a house and land package.

We’re partnering with some of Australia’s best builders to offer buyers a range of house designs perfectly suited for the Home Guarantee Scheme, so be sure to ask us more about this!

Contact the Manor Lakes Land Sales Centre.

What’s Lenders Mortgage Insurance?

It’s an extra charge from a lender that may be required if you do not have a deposit that is 20% of the purchase price.

It’s expensive. It could be tens of thousands of dollars on a $650k home.

Often, it’s charged up front and added into the total loan amount to be paid back in the mortgage repayments.

Lenders Mortgage Insurance helps the bank or lender protect itself against the risk of a borrower defaulting and not being able to pay back the loan.

This is a key feature of the Australian Government’s Home Guarantee Scheme. The Scheme provides the guarantee so everyone is covered if there’s a default, and borrowers can still get a loan with as little as 2% or 5%, which means you avoid paying for LMI entirely! Great news!

Get started - find out what’s possible! Our Team is ready to take you through the homebuying process and help make your new home dream a reality much sooner than you think! Contact the Manor Lakes Sales Team to find out more.

 

* Prices should only be used as a guide and are based on publicly available property finance calculators; indicative costs are not intended to be an exhaustive calculation of all the fees and charges that you may be required to pay in relation to any loan or property. Borrowers should seek personal financial advice before deciding how much to borrow and know the actual amount approved will vary depending on their personal circumstances and between lenders.  Interest rates subject to change without notice. Content provided herein is for general information purposes only, it does not take into account your personal circumstances or objectives and has not been provided for the purpose of securing any loan with any lender for you.  Prospective buyers should make and rely on their own enquiries, refer to their contract for full terms and conditions, and obtain independent advice including legal and financial advice prior to purchase.  Grants and eligibility conditions are subject to Federal and State Government rules - please see https://www.housingaustralia.gov.au/home-guarantee-scheme and https://www.sro.vic.gov.au/first-home-owner/applying-first-home-owner-grant for further details and eligibility criteria.  DFC makes no warranties or representations regarding the accuracy of any forecasts, advice or opinions stated herein.

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