Regional Vic first homebuyer fund doubled

The first home owner grant will be doubled for new homes in regional Victoria to drive investment and keep people in local towns.

The grant will increase from $10,000 to $20,000 from July 1.

"By doubling this grant, we're giving young people in regional Victoria even more reason to live locally," Premier Daniel Andrews said on Friday.

The increased grant will be available to first home buyers building new homes valued up to $750,000 until June 2020.

"I think this will be very warmly welcomed by young first home buyers trying to get into the market, and I think it will be welcomed by builders and those in the construction sector," Mr Andrews said.

The program will cost $50 million and is expected to benefit 6000 buyers.

The grant applies to new properties only and not established homes, however, people buying existing homes valued up to $600,000 can apply for a 50 per cent stamp duty discount.