First Home Buyer Grant Victoria
The initial home purchase is a great experience, but the amount of money needed upfront can be overwhelming. The First Home Owner Grant (FHOG) or First Home Buyer Grant (Victoria) is a one-off government assistance payment aimed at helping eligible first-time purchasers reduce expenses and make home ownership more affordable. At Capkon Melbourne, we guide first home buyers through the financial requirements, the amount of the grant, and the application procedure, enabling you to make informed financial choices.
What Is the First Home Owner Grant (FHOG)?
The First Home Owner Grant (FHOG) is a payment provided by the State Revenue Office (SRO) to first-time home buyers in Victoria, which is a one-time event.
- Define the grant: It is a Victorian State Government financial incentive.
- Who administers it: The administration and payment of it are handled by the State Revenue Office (SRO).
- How it helps: The grant, together with other stamp duty concessions, makes the initial costs of buying a property, including the deposit and land transfer duty (stamp duty), a lot cheaper.
Eligibility Criteria for the First Home Owner Grant
To be eligible for the FHOG (the Victorian First-home Owner Grant), all applicants must meet the following general and property-specific criteria:
Applicant Eligibility (First Home Buyer Grant Eligibility)
- First-Time Buyer: You (you and your spouse/partner, even when not on the title) are not allowed to jointly or individually own any residential property in Australia before 1 July 2000. Furthermore, you should not have been residing in a residential property owned by yourself or your spouse/ partner on or after 1 July 2000 for at least over a period of six months.
- Age and Status: All applicants shall be natural persons (not a company or trust) and must attain the age of 18 years on the date of settlement or completion of construction.
- Residency Status: One of the applicants shall have to be an Australian citizen or permanent resident (people possessing a permanent visa pursuant to s30(1) of the Migration Act 1958) at the date of settlement or completion of construction.
- Previous Grant: You must not have received the FHOG anywhere in Australia before.
Property Eligibility
- New Homes Only: The grant is only available for buying or building a new home. This includes a house, townhouse, apartment, unit, or a substantially renovated home, or a home built to replace demolished premises, that has not been previously sold, occupied as a home, leased out, or used for short-term accommodation.
- Value Limit: The contract price for the new home must be $750,000 or less.
- Residency Requirement: At least one applicant must occupy the home as their principal place of residence for a continuous period of at least 12 months, starting within 12 months of settlement or construction finishing.
How Much Can You Get?
The current FHOG amount for eligible contracts signed on or after 1 July 2013 is a fixed payment:
- FHOG Amount in Victoria: $10,000 for buying or building a new home valued up to $750,000.
Additional Incentives and Limitations
Purchase Price (Dutiable Value) | FHOG ($10,000 is for new homes only) | Stamp Duty (Land Transfer Duty) |
Up to $600,000 | $10,000 (if new home) | Full Exemption (Exempt from paying duty) |
$600,001 to $750,000 | $10,000 (if new home) | Concession (Reduced amount of duty) |
Over $750,000 | $0 (Ineligible for FHOG) | Duty Payable (May still be eligible for other concessions like Off-the-Plan) |
Example: If you are buying a $600,000 new home as a first-time buyer in Victoria, you could be eligible for both the $10,000 First Home Owner Grant and a full exemption from stamp duty.
How to Apply for the First Home Owner Grant
The application for the first-home buyer grant is typically straightforward and can be handled by your financial institution.
Step-by-Step Application Guide:
- Check Eligibility: Use the State Revenue Office’s (SRO) online tools to confirm you meet all FHOG and stamp duty eligibility criteria.
- Lodge with an Approved Agent (Recommended): In the majority of cases, your bank or credit union (the lender providing your home loan) is an approved agent. They will:
- Verify your identity and eligibility.
- Lodge the application form and supporting documentation on your behalf.
- Ensure the grant is paid at the time of settlement (for a purchase) or at the first drawdown of the building contract (for a new build).
- Lodge directly with the SRO: If an approved agent is not lodging for you (e.g., if you are not getting a loan), you can apply directly with the SRO. Note that applications cannot be lodged until after the eligible transaction is complete (settlement or construction completion). You must lodge within 12 months of the completion date.
- Gather Required Documents: Prepare the following:
- Proof of Identity: Three categories of documents for each applicant (and their spouse/partner), including evidence of Australian citizenship or permanent residency.
- Property Documents: Contract of Sale or Building Contract, and Certificate of Occupancy (for new builds).
- Spouse/Partner Details: Even if your partner is not a purchaser, their details are required for eligibility assessment.
The SRO typically reviews applications within 10 working days. If approved, the grant will be paid into your nominated account or applied towards your settlement costs.
Other Government Incentives for First-Time Buyers
The Victorian first-home buyer grant scheme may be used together with numerous other government assistance schemes:
- Stamp Duty Concessions in Victoria: First-home buyers are not charged Land Transfer Duty (Stamp duty) on the dutiable value up to $600,000.00, and a concession on the dutiable value between $600,000.01 and $750,000.00, as stated above. This is in both the case of new and existing homes.
- First Home Super Saver Scheme (FHSSS): This is a federal program that enables you to save your superannuation fund and use it as a deposit to buy your first home, giving you a tax deduction. Qualified first-time home buyers are allowed to withdraw voluntary contributions and their resulting earnings of up to $50,000.
- Home Guarantee Scheme (HGS): This is a federal program that assists first home buyers to purchase a home with as low as 5% deposit and no Lenders Mortgage Insurance (LMI) is paid, as the government guarantees part of the loan. It is a scheme that comprises the First Home Guarantee (FHBG) and the Regional First Home Buyer Guarantee (RFHBG). Note: The Victorian Homebuyer Fund (shared equity scheme) closed to new applications in September 2025.
Common Scenarios and Examples
Example 1: Buying a New Home Worth $600,000 with FHOG
A first-home buyer in Melbourne purchases a new apartment for $600,000.
- FHOG: Eligible for the full $10,000 FHOG (new home, under $750,000).
- Stamp Duty: Eligible for a full exemption on Land Transfer Duty (under $600,000).
- Total Benefit: A substantial saving of both the grant amount and the entire stamp duty cost.
Example 2: Buying Off-the-Plan and Eligibility Nuances
You sign a contract to purchase an off-the-plan apartment for $700,000. The property is a new home when completed.
- FHOG: Eligible for the full $10,000 FHOG (new home, under $750,000).
- Stamp Duty: Eligible for a concession on the Land Transfer Duty (between $600,001 and $750,000). You may also be eligible for the general Off-the-Plan stamp duty concession, which can further reduce the dutiable value.
Fixed Rate vs Variable Rate Mortgages – Which Is Better for First-Home Buyers?
Securing the right home loan in Melbourne is as crucial as obtaining the grant. The choice between a fixed-rate and a variable-rate mortgage depends on your personal financial situation and risk appetite.
Feature | Fixed Rate Loan | Variable Rate Loan |
Interest Rate | Stays the same for a set term (e.g., 1-5 years). | Fluctuates based on market interest rates (e.g., RBA cash rate movements). |
Repayments | Stability of repayments, making budgeting easy. | Payments can rise or fall, creating cash flow uncertainty. |
Initial Rate | May be higher upfront than a variable rate. | Often offers a lower initial rate, but this can change. |
Flexibility | Less flexible; limits on extra repayments and high break fees apply for early payout or refinancing. | More flexible; generally allows unlimited extra repayments, offers features like offset and redraw accounts, and has lower refinancing costs. |
Risk | Low risk of payment shock from rate rises. | Higher risk as repayments can increase suddenly. |
Which suits first-home buyers?
- Choose Fixed Rate if: You value certainty above all else, have a tight budget, and need to know exactly what your repayments will be. This can be great for new homeowners with less financial buffer.
- Choose Variable Rate if: You have a stable or growing income, can tolerate payment fluctuations, and want flexibility (e.g., to use an offset account or pay off the loan faster without penalty).
- Capkon’s Advice- Split Loan: Many first-home buyers choose a split loan, where a portion is fixed (for certainty) and the remainder is variable (for flexibility). We compare both options for you to secure the most cost-effective home loan alongside the FHOG.
How Capkon Melbourne Helps First-Home Buyers
At Capkon Melbourne, we specialise in helping first-time buyers navigate the complex path to homeownership. Our services include:
- Expert Guidance on Grant Eligibility: We assess your unique circumstances to ensure you meet all the criteria for the first home buyer grant in Victoria and other concessions.
- Assistance with Applications and Paperwork: We take the stress out of the application process by preparing and lodging all necessary documentation, including the FHOG application, with the State Revenue Office or your lender.
- Financial Planning Advice to Maximise Benefits: We structure your loan and government incentives to maximise your savings, including advising on the best mortgage rate type (fixed, variable, or split) for your financial goals.
FAQs – First Home Buyer Grant Victoria
What is the First Home Owner Grant, and who is eligible?
The FHOG is a one-time payment of $ 10,000 from the Victorian Government for first-time purchasers to buy or construct new homes of up to $750,000. To be eligible, the applicant must be aged over 18, an Australian citizen or permanent resident, and he or she must never have owned residential property in Australia before.
How much money can I get under the FHOG in Victoria?
The current amount is $10,000 for an eligible new home purchase, regardless of whether it is in metropolitan or regional Victoria.
Can I combine the grant with stamp duty concessions?
Yes, you can. When you purchase a new home for up to $750,000, you will receive the FHOG $10,000 support in addition to the First Home Buyer Land transfer Duty (or Stamp Duty) exemption (applicable to homes worth up to 600000) or concession (applicable to homes worth 600,0001 to $750,000).
Do I need to live in the home to receive the grant?
Yes. At least one applicant must occupy the home as their principal place of residence for a continuous period of at least 12 months, commencing within 12 months of settlement or construction completion.
Can I apply for the FHOG if I buy an off-the-plan property?
Yes, purchasing a new home off-the-plan can be eligible for the FHOG, provided all other criteria are met, and the contract price is $750,000 or less. Off-the-plan purchases may also benefit from a stamp duty concession.
What happens if my property purchase falls through?
If your contract of sale is lawfully cancelled and the sale does not proceed, your application for the grant will be withdrawn. If you have already received the grant funds, you will need to repay them, but you can then apply for the grant again for a subsequent eligible purchase.
Does Capkon Melbourne help with grant applications?
Yes, Capkon Melbourne assists with checking your eligibility, preparing the necessary documents, and lodging your FHOG application on your behalf, typically through your chosen lender, to ensure a smooth and timely process.