Melbourne’s Secret Weapon for First Home Buyers: Stack These Government Schemes and Save Big

If you’re a first home buyer in Melbourne and you’re not stacking your government benefits, you’re probably leaving tens of thousands on the table.

Sounds dramatic? It is – in a good way. 

Right now, we’re witnessing the most generous suite of first home buyer incentives Australia has seen in decades. And the kicker? Most buyers don’t even realise how powerful these programs become when combined strategically.

Let’s break it down.

Smart Buyers Are Scheme Stacking. Here’s Why

As a debt strategist at DreamWealth here in Melbourne, I’ve helped young professionals turn modest deposits into property ownership – without paying a cent in LMI, and with upfront cash grants, stamp duty exemptions, and even government co-investment.

In 2025, if you know how to combine these schemes, you can fast-track your first purchase – sometimes shaving $40,000-$70,000+ off the total upfront cost.

The Most Powerful Government Schemes You Can Stack Today

First Home Guarantee

The First Home Guarantee allows you to purchase with just a 5% deposit with no Lenders Mortgage Insurance (LMI). This scheme is now open to permanent residents and can be accessed through participating banks including CBA, NAB, Bendigo Bank, and others.

Victorian First Home Owner Grant (FHOG)

This provides a $10,000 cash grant for new builds under $750,000. The grant applies to homes or units less than 5 years old if not previously lived in.

Stamp Duty Exemption or Discount

You can receive a full exemption if your home is under $600,000, or a discount for properties up to $750,000. That’s a saving of up to $31,070 on a $600K home.

First Home Super Saver Scheme (FHSS)

This allows you to save part of your deposit inside super and then withdraw it tax-effectively. You can access up to $50,000 per person from voluntary contributions.

Example: How This Works in Real Life

Let’s say Jess and Tom are buying a $680,000 townhouse in Pakenham. Here’s how they win:

They save $34,000 by using the First Home Guarantee (no LMI on a 5% deposit). They receive $10,000 FHOG from the Victorian Government. They get an $18,000+ stamp duty exemption. They use FHSS to pull out $40,000 in tax-advantaged funds.

That’s over $60,000 in combined support and savings. Unreal? Nope. Just unclaimed by most.

Timing Matters: Scarcity Is Real

Each scheme has limited annual places, especially the First Home Guarantee.

When interest rates begin to fall – as expected later this year – demand will spike, and these places will get snapped up. The allocation refreshes annually, not monthly, and once they’re gone, they’re gone.

What To Do Now

First, run the numbers using government calculators or speak to someone who knows them inside out. Second, check your eligibility including citizenship, income, property price, and living intention. Third, book a strategy session – a 20-minute call could literally save you $50K+. Fourth, find the right lender as only select banks offer the First Home Guarantee. Finally, get organised with pre-approval, documents, super records, and ID.

Final Thought

You don’t need to do this alone. Melbourne’s first home buyers are stepping into the market with more firepower than ever before – if they know where to look.

If you’re serious about owning your first home and want to leverage every available advantage, book your complimentary First Home Buyer Strategy Call with DreamWealth today.

Spots are limited — just like the schemes. Miss the window, and the cost could be more than financial.