| Big 4 variable owner-occupier P&I | 5.99-6.20% p.a. |
| Non-bank variable (Athena, ING, Macquarie) | 5.79-5.95% p.a. |
| 2-year fixed owner-occupier P&I | 5.79-5.99% p.a. |
| 3-year fixed owner-occupier P&I | 5.89-6.15% p.a. |
| Investor variable P&I | 6.20-6.50% p.a. |
- Melbourne median dwelling value (May 2026)
- $795,000
- Regional VIC median
- $590,000
- FHG Melbourne property cap
- $950,000
- FHG regional VIC property cap
- $650,000
VIC home loan rates: set nationally
Australian home loan rates are set nationally; Victorian borrowers access the same Big 4 packaged rates (5.99-6.20 per cent variable), non-bank sharper rates (5.79-5.95 per cent), and fixed rate options as borrowers in any other state. The rate comparison is the standard national one.
What differs for Victorian borrowers is the property market context (Melbourne is in confirmed correction as at mid-2026), the state-level first home buyer benefits, and Bank of Melbourne as a Westpac-group brand with Victorian focus that can sometimes surface sharper pricing than Westpac itself.
Victorian first home buyer benefits
Victoria operates one of the more straightforward state first home buyer benefit structures. Full stamp duty exemption applies up to $600,000 purchase price, with a partial concession applying $600,000 to $750,000. For a first home buyer purchasing at $650,000 in Victoria, the stamp duty saving is approximately $34,000 versus the standard rate.
The Victorian First Home Owner Grant ($10,000) applies to new builds. The Off-the-Plan Concession provides material additional benefit for buyers purchasing off-the-plan apartments or townhouses, with stamp duty calculated only on the land value rather than the full purchase price. Combined with the federal First Home Guarantee, the upfront-cost reduction can exceed $50,000 for a typical Melbourne first home purchase.
Melbourne correction and first home buyer window
Melbourne values are in confirmed correction as at mid-2026, with five consecutive months of decline. Combined with the FHG place cap removal in October 2025 and the Victorian state stamp duty exemption, the current first home buyer window in Melbourne is the most favourable in over five years.
The Melbourne FHG property cap of $950,000 covers a meaningful share of inner and middle-ring Melbourne purchases. Regional Victoria at $650,000 covers most regional purchases. For first home buyers who have been waiting on Melbourne affordability, the 2026 conditions are materially more accommodating than 2024-2025.
VIC first home buyer benefits
Frequently asked questions
What is the Victorian First Home Buyer Duty Exemption?
A Victorian state government scheme providing full stamp duty exemption for first home buyers purchasing up to $600,000, with a partial concession $600,000 to $750,000.
What is the FHG property cap in Victoria?
Melbourne metropolitan and regional centres: $950,000. Elsewhere in Victoria: $650,000. These caps are reviewed periodically by Housing Australia.
Can I use the Victorian Off-the-Plan Concession with FHG?
Yes. The Off-the-Plan Concession applies to stamp duty calculation while FHG applies to LMI. The two work together for eligible off-the-plan first home purchases.
Which lenders are strongest in Victoria?
Bank of Melbourne is the Westpac-group regional brand with strongest Victorian presence. The Big 4, ING, Athena and Macquarie all compete strongly. Bendigo Bank has strong Victorian presence as a tier-2 lender.
Is now a good time to buy in Melbourne?
Melbourne values are in correction in mid-2026, which is a more accommodating buyer market than in 2024-2025. Combined with FHG and state benefits, the conditions for first home buyers are materially more favourable than recent years. The trade-off is the uncertain timing of when the market bottoms.