First Home Owners Grant (FHOG) Guide
Buying your first home is a big milestone, and the First Home Owners Grant (FHOG) can make the journey easier. If you are curious to know, “What is the First Home Owners Grant?”, let us explain. It’s a government initiative to help first-time buyers enter the property market. This one-off payment is available to eligible buyers purchasing or building a new house.
In this blog, we’ll help first-home buyers navigate the grant process, secure financing, and take advantage of other government incentives. So, if you’re also a first-time buyer in Melbourne, read on. We’ll answer the question, “How does the First Home Owners Grant work?”, and discuss how a first-timer can apply.
First Home Owners Grant: VIC Eligibility
To qualify for the first home buyer’s grant in Victoria, you must meet specific criteria set by the State Revenue Office (SRO). Here’s what you need to know:
Be a first-time buyer
You (and your partner, if applicable) must not have previously owned a property in Australia.
The property must be new
The grant applies to newly built homes, off-the-plan purchases, or substantial renovations.
Minimum property value
The property (house plus land) must be valued at $750,000 or less.
Live in the home
You must move in within 12 months of settlement and live there for at least 12 continuous months.
Australian residency requirement
You, or your partner, must be an Australian citizen or permanent resident.
If you’re unsure whether you qualify, an expert mortgage broker, like MC Finance Group, can assess your eligibility and guide you through the application process.
How Much Can You Receive?
One question many first-home buyers ask is, “How much is the First Home Buyers Grant?” Well, the answer depends on your location. In Victoria, eligible buyers can receive a $10,000 grant when purchasing or building a new house.
Here is an updated breakdown of First Home Owner Grant amounts across various states and territories:
Victoria (VIC)
Eligible first-home buyers can receive a $10,000 grant when purchasing or building a new one valued at up to $750,000.
New South Wales (NSW)
A $10,000 grant is available for:
- Newly built homes purchased for up to $600,000
- Land and building contracts with a combined value of up to $750,000
Queensland (QLD)
The grant amounts are:
- $30,000 for contracts signed between 20 November 2023 and 30 June 2025
- $15,000 for contracts signed before 20 November 2023. (Applies to new houses, units, or townhouses valued at less than $750,000.)
South Australia (SA)
A one-off payment of up to $15,000 is available for eligible first-home buyers purchasing or building a new residential property valued at up to $575,000.
Western Australia (WA)
The FHOG provides a one-off payment of up to $10,000 for eligible applicants buying or building their first new home.
Tasmania (TAS)
As of the latest available information, the FHOG in Tasmania is $30,000 for eligible first-home buyers purchasing or building a new residence.
Northern Territory (NT)
Under the HomeGrown Territory Program, available from 1 October 2024 to 30 September 2025, the NT Government offers:
- $50,000 for first-time buyers to purchase or build a new home
- $10,000 for first-home buyers purchasing an existing house
- $30,000 for previous homeowners to build or purchase a new house
Australian Capital Territory (ACT)
The FHOG has been replaced by stamp duty exemptions and concessions for eligible applicants.
Along with the First Home Owners Grant, additional benefits like stamp duty concessions and the First Home Guarantee Scheme can reduce upfront costs. Remember, various eligibility criteria and property value thresholds apply in each state or territory. Hence, it’s advisable to consult the respective revenue office for detailed information and to confirm current grant amounts and conditions. The experts can help you access all available incentives to maximise your savings.
How to Apply for the First Home Owners Grant
Many first-home buyers wonder, “How do I apply for the First Home Buyers Grant in Melbourne?”. We’re here to tell you that the process is quite straightforward. However, missing details or incorrect paperwork can delay your approval. To make sure that this doesn’t happen, let’s go through the step-by-step FHOG application process together:
Check your eligibility
“Am I eligible for the first home buyers grant?”, is the first question that will strike you. To avoid mistakes down the line, first, ensure that you meet all criteria set by the State Revenue Office, Victoria.
Gather required documents
You need to collect a few important documents, including:
- Proof of identity (passport, driver’s licence, or birth certificate)
- Copy of the signed contract of sale (for buying) or building contract (for constructing a home)
- Proof of residency (utilities bill or rental history)
Submit your application
This can be done in multiple ways, such as:
- Through the lender (if applying for a home loan)
- Directly to the SRO (if applying independently)
Wait for approval
Now, you’ll have to wait for the application to get reviewed. The first home buyer’s grant is usually processed within two to four weeks after submission.
Receive the grant
If everything is in order, the FHOG amount is released. It is typically paid directly to your lender and deducted from your loan balance or settlement costs.
Now, you’re familiar with the steps to apply for and receive a First Home Owners Grant. That being said, there are a few things you must remember to ensure a smooth process. Here are some common mistakes applicants should avoid:
Applying before securing a property
Failing to provide the correct documents
Not meeting residency requirements
Assuming pre-approval means guaranteed approval
Do you need help with your application? Opt for expert brokers like MC Finance Group and enjoy a simplified process. We’ll ensure everything is completed correctly and on time.
Other First Home Buyer Assistance Programs
Aside from the first-home buyer’s grant, there are additional schemes designed to support first-home buyers, including:
First Home Guarantee Scheme
Stamp Duty Concessions
First Home Super Saver Scheme (FHSS)
Each of these initiatives can further reduce upfront costs, making it easier to buy your first home. Professionals can help you determine which schemes you qualify for. Additionally, they can also provide unbiased advice on how to enjoy greater savings.
Check Your FHOG Eligibility – Contact MC Finance Group
Are you thinking about buying your first home? Congratulations! The first home buyer’s scheme will give you a valuable boost towards homeownership. At MC Finance Group, we help first-home buyers in Melbourne secure grants, home loans, and other applicable government incentives.
Call us today on 0430 200 322 to check your eligibility and take the next step towards owning your first home. You can send us your queries at Matthew.chik@mcfinancegroup.com.au, and our team will get back to you at the earliest.
