In 2026, two Victorian first-home-buyer schemes can be layered on the same purchase - the Victorian Homebuyer Fund (VHF) shared-equity scheme, and the First Home Owner Grant (FHOG). Layered correctly with the federal First Home Guarantee, an eligible buyer can enter the market on as little as a 5% cash deposit for a new build up to $750,000. Here is what each scheme actually does, and where the stacking rules bite.

The three schemes at a glance

• Victorian Homebuyer Fund (VHF): State-owned shared-equity contribution of up to 25% (or 35% for Aboriginal and Torres Strait Islander applicants) toward the purchase price. You pay it back on sale or by refinancing. Income cap: $132,985 single, $215,972 couple. Property price cap: $950,000 metro Melbourne, $650,000 regional.
• First Home Owner Grant (FHOG): $10,000 one-off grant for new-build homes valued up to $750,000. Not available for established homes.
• First Home Guarantee (federal): Allows a 5% deposit without paying LMI. Property price cap $950,000 Melbourne, $600,000 regional Victoria (indexed).

The stacking play - new-build in a growth corridor

Example: Tarneit, $700,000 land + build package. First-home-buyer couple, combined income $150,000.

1. FHOG - $10,000 grant on the new build.
2. VHF - up to 25% shared equity ($175,000).
3. Bank loan - 70% remainder ($490,000).
4. Cash deposit - 5% ($35,000).

Actual cash required at settlement: $35,000 deposit + $10,000-$15,000 legal/settlement + stamp-duty exemption applies to first-home buyers up to $600,000 (partial exemption to $750,000). Under $600,000 there is no stamp duty at all.

The two stacking traps

• VHF and FHG (federal) cannot be combined. You pick one or the other. VHF gives you a bigger boost (25% equity) but you share future capital gains with the state. FHG gives you no equity injection but keeps 100% of the upside. Rule of thumb: hold-forever buyers prefer FHG; buyers unsure about long-term hold prefer VHF.
• FHOG only applies to NEW builds. If your VHF-eligible property is an existing home, you get zero FHOG.

The exit math on VHF

You must repay VHF at the earlier of: (1) sale, (2) refinance to a bank not participating in VHF, or (3) reaching a specified income threshold that triggers voluntary buyback. Repayment is calculated as VHF's proportion of the property's CURRENT market value - so if the home has appreciated, you owe more than what VHF contributed.

Example: $175,000 contribution on a $700,000 purchase = 25%. If the home is worth $850,000 at sale, VHF gets 25% of $850,000 = $212,500. You have effectively paid $37,500 for the 5 years of shared equity - reasonable if it enabled you to enter the market earlier and you paid down the bank loan aggressively.

Who qualifies for each

• VHF - Australian citizen or permanent resident, first-home buyer OR not owned property in Australia for 3+ years, income under cap, buying under price cap, will live in the home as primary residence.
• FHOG - Never owned a home in Australia, buying / building new, over 18, will live in the home for 12+ months.
• FHG - First-home buyer, income under $125k single / $200k couple, 5% deposit, primary residence.

Where BuildPilot fits

We are not a mortgage broker or financial adviser. Our Melbourne first-home-buyer pillar covers the full decision framework and links out to State Revenue Office and Housing.vic.gov.au for scheme specifics. Talk to a mortgage broker experienced in VHF applications before committing - the application process runs 6-10 weeks and needs to be started before you sign a purchase contract.