First-Home Buyer House and Land Packages: Combining FHOG, 5% Deposits & Fixed Pricing

Buying your first home can feel like a difficult financial equation. You need to save a deposit, understand your borrowing capacity, account for stamp duty and other upfront costs, choose a suitable location, and work out how much it will actually cost to build. For many first-home buyers, the path to ownership can feel uncertain—but it doesn't have to be.

A house and land package gives you a more structured pathway, because the land and new home are planned as part of the same purchase. For eligible Victorian first-home buyers, several forms of government assistance can also help reduce the upfront financial barrier.

The Victorian First Home Owner Grant (FHOG) is currently $10,000 for eligible buyers purchasing or building a new home valued at up to $750,000. Eligible first-home buyers can also receive a full land transfer duty exemption on properties valued up to $600,000, or a reduced amount of duty for properties between $600,001 and $750,000.

At the federal level, the First Home Guarantee lets eligible first-home buyers purchase with a minimum 5% deposit, subject to the scheme's eligibility rules and participating lender requirements. When these options are combined with a carefully selected house and land package and a clearly defined building contract, first-home buyers get a genuinely more manageable pathway into home ownership.

What Are House and Land Packages for First Home Buyers?

House and land packages combine two key components of the home-buying journey: a parcel of land and a new home design. Instead of purchasing an established property and renovating it, or buying vacant land without knowing exactly what you'll eventually build, a house and land package gives you a clearer picture of the intended home and site from the beginning.

The package generally identifies the location of the land, the home design, the proposed floorplan, facade options, included features and specifications, building costs, available upgrades, and applicable terms and conditions. The exact contract structure varies between packages and providers, so understand whether the land and construction components are under separate contracts, and seek independent legal and financial advice before signing.

For first-home buyers, this structure is appealing because it gives you greater visibility over the overall project than starting with a blank block and designing a home from scratch, and it makes it easier to compare potential homes based on location, floorplan, inclusions and total project costs.

Why a 20% Deposit Isn't the Only Possible Entry Point

For most first-home buyers purchasing a new build home, a 20% deposit is no longer a requirement. That's a significant shift from traditional property purchasing, and it opens up the market to buyers who might otherwise need to wait years to save enough.

The First Home Guarantee is a key reason. Under the scheme, eligible first-home buyers can purchase with a minimum 5% deposit, with Housing Australia providing a guarantee to the participating lender for part of the loan. That guarantee helps eligible buyers avoid paying Lenders Mortgage Insurance (LMI), though you still need to meet the lender's borrowing and approval requirements.

Importantly, the guarantee is not a cash grant. The government doesn't hand you the 5% deposit; instead, Housing Australia's guarantee gives the participating lender additional security, allowing eligible buyers to borrow up to 95% of the property's value. This distinction matters when planning your finances—you still need the required deposit available and need to demonstrate you can comfortably service the resulting home loan.

What Grants Are Available for First Home Buyers Building in Victoria?

Eligible first-home buyers building a new home in Victoria can access several forms of assistance, depending on their circumstances and the value and structure of the transaction.

Victorian First Home Owner Grant

The Victorian First Home Owner Grant is currently $10,000 for eligible first-home buyers buying or building a new home in Victoria. The property must generally be a new home that hasn't previously been sold or occupied, and its value must not exceed $750,000. Applicants must also satisfy the relevant residency and first-home ownership requirements. The grant applies to a land and building package, making it particularly relevant to first-home buyers considering a new house and land package.

First-Home Buyer Stamp Duty Exemption

Eligible first-home buyers receive a full exemption from Victorian land transfer duty when the dutiable value of the property is $600,000 or less. For properties valued between $600,001 and $750,000, eligible buyers get a concession that reduces the duty payable. For vacant land, the State Revenue Office bases the first-home buyer duty exemption or concession on the land itself, not the building contract. Eligibility and calculation can depend on your exact transaction structure, so confirm your circumstances with your conveyancer or solicitor.

First Home Guarantee

The federal First Home Guarantee lets eligible buyers purchase with a minimum 5% deposit. From 1 October 2025, Housing Australia removed the previous cap on the number of places available under the scheme, it's now open to all eligible first-home buyers with no place limit, alongside higher property price caps (Melbourne and Geelong increased from $800,000 to $950,000, other Victorian areas remain at $650,000) and the removal of income caps. Eligible buyers must still satisfy the scheme requirements and obtain finance through a participating lender, and the scheme can be used for eligible new-build arrangements, including house and land packages, subject to the applicable property price caps for your location.

How These Benefits Can Work Together

These benefits address different parts of the purchasing process. The FHOG is a grant. The Victorian first-home buyer duty benefit is a tax saving. The First Home Guarantee is a government guarantee supporting eligible lending with a lower deposit. They're not three versions of the same benefit.

An eligible buyer can potentially use the FHOG alongside Victorian stamp duty benefits and the First Home Guarantee, provided all relevant eligibility requirements are satisfied, Housing Australia confirms the First Home Guarantee can be used in conjunction with state and territory first-home owner grants and stamp duty concessions. That combination can address several of the biggest barriers first-home buyers face: the deposit, government charges, and the cost of entering a newly built home. These benefits don't automatically apply to every buyer or every package though, so check eligibility before relying on them as part of your purchasing budget.

Example: How a First-Home Buyer Might Structure the Purchase

Consider a hypothetical first-home buyer looking at a new house and land package within the relevant government scheme thresholds, eligible for the First Home Guarantee and with the required 5% deposit saved.

On a hypothetical $600,000 property value: a 5% deposit is $30,000. The buyer may also qualify for the $10,000 Victorian FHOG. And if the buyer satisfies the Victorian first-home buyer duty requirements with a dutiable value of $600,000 or less, land transfer duty is $0.

This doesn't mean the buyer only needs $30,000 in total cash, there are still costs associated with conveyancing, inspections, loan establishment, insurance, government fees, site-related costs, moving and other expenses, and the lender will assess income, expenses, debts, credit position and ability to service the loan. The example simply shows why combining the available assistance can make the upfront numbers look substantially different from a traditional deposit scenario. Get a personalised assessment before making any financial commitments.

Fixed Pricing Can Add Another Layer of Certainty

Deposit assistance helps with entering the market, but first-home buyers also need to think about what happens after the land and building contracts are signed. Construction costs are a major concern for buyers working with a limited budget, and a package with clearly documented pricing and inclusions makes it easier to understand what you're paying for and identify potential additional costs before committing.

This is where fixed-price building arrangements are attractive. A fixed-price contract provides greater cost certainty around the agreed scope of work, subject to the terms, exclusions, variations and conditions of the specific contract. But fixed price doesn't mean every possible cost is automatically covered. Carefully review site costs, council and authority charges, driveways, landscaping, fencing, window coverings, upgrades, floor coverings, appliances, heating and cooling, service connections, bushfire or environmental requirements where applicable, changes requested after signing, and any provisional or excluded items. The goal isn't simply to find the most affordable advertised package, it's to understand the realistic total cost of getting the home completed and ready to live in.

Why Standard Inclusions Matter to First-Home Buyers

When comparing house and land packages, look beyond the headline price—two packages can have very different levels of inclusions built in from the start. Before comparing packages, ask for a detailed inclusions list so you understand exactly what you're getting.

We've covered exactly what to check in a package's inclusions, and what "true turnkey" actually means versus a basic build, in our full guide to what true turnkey means in house and land packages. You can also review Sherridon's standard home inclusions directly. Understand what's included as standard in each package, and compare packages based on which one provides the features and finishes that match your needs and budget.

Choosing Between Land and Home Packages

Not every house and land package suits every first-home buyer—which is why our in-house house and land experts work to identify suitable packages across multiple locations. Rather than searching broadly, they help match you to a package that fits your specific circumstances: your budget, your preferred home design, and your location requirements.

When finding the right package, consider factors such as block size, frontage, orientation, slope, estate restrictions, transport access, schools, shops, parks and other local amenities. The goal is to find the package that brings together the location, land, home design and inclusions in a way that genuinely suits your needs and budget—without the need to customise beyond the package itself.

Visit a Display Home Before Choosing Your Package

Floorplans are a useful starting point, but walking through a completed home tells you much more about whether a design works for you. You can assess room proportions, storage, kitchen layouts, natural light, bedroom positioning and the overall flow of the home, and compare different designs to work out which features genuinely matter before selecting your package.

If you're researching local options, tour display homes near you and experience different layouts in person. Walking through several homes helps you identify which floorplan best matches your lifestyle, and can stop you paying for features that look attractive online but aren't particularly useful day to day.

Understand the First Home Guarantee Rules Before Signing

The First Home Guarantee is a valuable pathway, but don't assume every house and land package automatically qualifies. Housing Australia's scheme has specific eligibility requirements covering the buyer, loan, property and purchase price, and the property must stay within the applicable price cap for its location. Since October 2025, that cap is $950,000 for Melbourne and Geelong, and $650,000 for other Victorian areas.

The building contract matters too, Housing Australia's information for the scheme highlights the importance of fixed-price building contracts for eligible land-and-build transactions, and warns that amendments after signing may affect scheme eligibility or create additional costs. This makes it important to involve your lender or mortgage broker early. Don't assume a package is eligible simply because it's marketed to first-home buyers, your participating lender should confirm the property's eligibility and whether your proposed transaction meets the scheme requirements. For the latest federal scheme information, visit Housing Australia's First Home Guarantee page.

Don't Forget Stamp Duty on the Land

Stamp duty can be one of the less obvious costs for first-home buyers. Eligible Victorian first-home buyers may qualify for a complete exemption where the dutiable value is $600,000 or less, with a concession available from $600,001 to $750,000. House and land transactions can be structured differently from an established-home purchase though, for vacant land, the Victorian State Revenue Office assesses first-home buyer duty based on the land itself rather than the building contract, which matters when planning a house and land purchase because the land price and construction cost can be treated differently for certain state tax purposes. Your conveyancer or solicitor can explain exactly how the duty rules apply to your proposed contract structure.

Build a Budget Beyond the Deposit

One of the biggest mistakes first-home buyers make is treating the deposit as their entire upfront budget. A 5% deposit makes the purchase more accessible, but you still need to account for your government assistance position, conveyancing and legal costs, loan establishment costs, site-related costs, any upgrades you want, moving costs, and an emergency buffer to keep some savings available after settlement and construction. The objective is to enter home ownership without leaving yourself financially stretched.

A Simple First-Home Buyer Strategy

If you're considering a house and land package, break the process into stages:

1. Establish your borrowing capacity with a lender or broker
2. Determine your available deposit without exhausting your emergency funds
3. Check your eligibility for the Victorian FHOG, first-home buyer duty benefits and the First Home Guarantee
4. Set a realistic total budget beyond the advertised package price
5. Compare locations
6. Compare home designs
7. Review inclusions properly
8. Inspect display homes in person
9. Have the contracts reviewed by appropriate professionals
10. Confirm with your lender that the proposed purchase meets the relevant loan and government scheme requirements before you proceed

Why House and Land Packages Can Make Sense for First-Home Buyers

For buyers entering the market for the first time, the biggest challenge is often uncertainty: how much land can you afford, how much will the home cost, what will government assistance cover, how much deposit do you need, which inclusions are standard, will the package stay within your borrowing capacity. A well-structured house and land package helps answer many of these questions earlier in the process, and combined with eligible government assistance, gives you a clearer pathway into new-home ownership.

The key is looking at the entire picture rather than one headline benefit. A 5% deposit reduces the initial deposit requirement, now available without a place limit. The FHOG provides $10,000 for eligible new homes. Stamp duty relief reduces or eliminates land transfer duty for eligible first-home buyers. A clearly defined building contract and inclusions list gives you greater visibility over construction costs. Together, these elements make the journey genuinely more predictable.

Check Your First Home Buyer Package Eligibility Today

Buying your first home is a major decision, but you don't need to wait until you've saved a traditional deposit before exploring your options. Eligible buyers can combine the Victorian First Home Owner Grant, first-home buyer stamp duty benefits and the federal First Home Guarantee, subject to the relevant eligibility criteria.

The key is understanding exactly what you qualify for, how the land and building contracts are structured, and what the total project cost will be. Browse Sherridon's first home buyer house and land packages and compare available locations and designs. Take your time assessing the land, home design, inclusions and overall budget, then speak with your lender, mortgage broker and conveyancer to confirm your eligibility and make sure the package fits your financial circumstances.

Check your first home buyer package eligibility today and take the next step towards building a new home in Victoria with greater clarity and confidence.