Your Guide to Victoria's First Home Owner Grant

Dec 14, 2019

The First Home Owner Grant is a one-off payment of $10,000 that eligible first home buyers can put towards their home loan. Find out how it could help you buy your first home.

Victoria's First Home Owner Grant (FHOG)

One of the most well-known first home buyer benefits is the Australian Federal Government’s First Home Owner Grant (FHOG). The First Home Owner Grant is a one-off payment of $10,000 that eligible first home buyers can put towards their home loan. The grant was first introduced by the Federal Government in 2000 to offset the impact of GST on buying a home.

For those looking to buy in regional areas, first home buyers may be eligible for a FHOG of up to $20,000.

What are the benefits of the First Home Owner Grant?

The FHOG means your loan is $10,000 less than it otherwise would be, so you’ll pay less interest over the life of your loan.

The grant only applies to newly constructed homes (less than five years old), so buying off the plan automatically meets this requirement.

Who is eligible for the FHOG?

  • You must be an Australian citizen at least 18 years of age
  • The home must be new and must not exceed the value of $750,000
  • You must live in the property for at least the first 12 consecutive months from settlement (when the keys are handed over to you)
  • The property cannot be an investment property or a holiday home
  • You or your partner must not have already received the FHOG or owned a home in Australia before 1 July 2000

You can use the State Revenue Office’s (SRO) online tool to find out whether you meet the eligibility criteria.

How do I apply for the First Home Owner Grant?

In most cases, your home loan provider will submit the application on your behalf. The grant is then paid at time of settlement. For more information, visit the SRO website.

How and when do I get the FHOG?

If you’re buying off the plan, it’s important to know that first home owners grant is paid at settlement. Usually it’s paid directly to your lender, usually around 5 days after settlement. Most lenders will also lodge your application for you so the process is quick and easy.

If the FHOG isn't right for you, read our First Home Buyer's Guide to Government Incentives or enquire on one of our current projects and we can talk you through the steps.

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The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. We make no warranty as to the accuracy, completeness or reliability of the information, nor do we accept any liability or responsibility arising in any way from omissions or errors contained in the content. Caydon recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.