First Home Buyers Grant: Everything You Need to Know

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From a financial point of view, buying your first home can feel like a huge mountain to climb. That’s where the First Home Buyers Grant – or the First Home Owner Grant (FHOG) as it’s called in most states – steps in. It’s designed to give first-time buyers a leg up and help ease the cost of purchasing or building a new home.

While the First Home Buyers Grant is a national initiative, each state and territory has its own rules. In this article, we’ll cover the grant, break down the key details for each state, and share common mistakes to avoid. We’ll also look at other incentives that could help you on your way to owning your first home. Whether you’re gathering information or have a shortlist of potential first home owners and homes saved, you’re in the right place.

What is the First Home Buyers Grant?

The First Home Buyers Grant is a one-off payment that helps first-time home buyers in Australia buy their first residential property. It’s designed to reduce the financial pressure of buying or building a new home and help people get a foot in the door of the property market. The grant was introduced in July 2000 as a way to offset the impact of GST on home ownership. Over the past 25 years, it’s become an important part of government efforts to support housing affordability.

Generally, the grant is available for those buying or building a new property that’s never been lived in before, and it’s meant for your primary residence (in other words, it’s meant to be your home, not an investment property you rent out). The exact amount and eligibility criteria vary depending on where you are. So, rather than assume you’re eligible, you need to understand the specific rules in your state or territory.

State-Specific Information for the First Home Buyers Grant

The First Home Buyer Grant varies depending on the state or territory where you buy. The amount you receive, the eligibility criteria, and the application process can change depending on where you live.

New South Wales: First Home Owner Grant (FHOG)

In NSW, first-time buyers can receive a $10,000 grant for buying or building a new home. The property must be either newly built or substantially renovated, and the price limit is $600,000 for homes or $750,000 for land plus construction.

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older
• You must not have previously received the FHOG or owned residential property in Australia
• The home must be your principal place of residence for at least 12 months.

How to apply: You can apply through an approved agent (in other words, your bank or lending institution) or directly via the Revenue NSW website. If you’re using a mortgage broker to obtain finance, they should also be able to help with your application. Check out our top mortgage brokers in Sydney and NSW if you don’t have one already.

Victoria: First Home Owner Grant (FHOG)

In Victoria, first-time buyers can receive $10,000 for purchasing or building a new home, provided the property is valued at $750,000 or less. The grant applies to new homes that haven’t been previously lived in or substantially renovated homes.

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You or your spouse/partner must not have previously received the FHOG or owned residential property in Australia that you’ve lived in
• The home must be your principal place of residence for at least 12 months.

How to apply: Submit your application through an approved agent or the SRO Victoria website. Alternatively, you can use a Melbourne mortgage broker to make your application easier.

Queensland: First Home Owner Grant (FHOG)

In Queensland, first-time buyers can receive a grant of up to $30,000 to buy or build a new home. The property must be valued at less than $750,000, including land and construction variations.

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You or your spouse must not have previously owned a property in Australia after 1 July 2000 that you lived in or before 1 July 2000, whether you lived in it or not.
• The home must be your primary place of residence for at least six months, and you must move in within a year of the transaction’s completion.

How to apply: Applications can be lodged by an approved agent or directly with the Queensland Government. You can also use an expert Brisbane mortgage broker from our shortlist to help.

Australian Capital Territory (ACT): Home Buyer Concession Scheme

The First Home Owner Grant (FHOG) was replaced by the Home Buyer Concession Scheme in the ACT on 1 July 2019. This scheme provides a full stamp duty concession for eligible buyers purchasing a new or substantially renovated home or vacant land, regardless of the property’s value. There is no cap on the property value for eligibility.

To be eligible, you must meet the above criteria and apply the following requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You must live in the home continuously for at least one year, starting within 12 months of settlement or construction completion.
• Your taxable income (including your partners’) for the previous financial year must be below the income threshold (which is $250,000 for individuals with no dependents and higher thresholds for those with dependents)
• You and your partner must not have owned property within the past five years.

How to Apply: Applications are made through Access Canberra, where you can submit the Buyer Verification Declaration and supporting documents.

Northern Territory (NT): HomeGrown Territory Grant

In the NT, first home buyers are eligible for the HomeGrown Territory Grant, which offers $50,000 for building or buying a new home. Currently, there’s no purchase price or cap on the property value.

Eligibility Requirements:

• You must be a first home buyer who has not previously owned property in Australia
• You must sign a contract to build or purchase between 1 October 2024 and 30 September 2025
• You must live in the home as your primary residence for at least 12 months.

How to Apply: Applications can be lodged through your financial institution or directly with the Territory Revenue Office.

South Australia (SA): First Home Owner Grant (FHOG)

In South Australia, first-time home buyers may receive a $15,000 grant to purchase or build a new home. The eligible property must not have been lived in or sold before. There’s no value cap for eligible properties, as the Government removed it on 6 June 2024.

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You and your partner must not have owned or lived in a residential property in Australia for six months or longer after 1 July 2000
• The home must be your principal place of residence for at least six months within 12 months of settlement or construction completion.

How to Apply: Applications can be submitted through an approved agent or directly with Revenue SA.

Tasmania: First Home Owner Grant (FHOG)

In Tasmania, first-time buyers can receive $10,000 for purchasing or building a new home.

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You or your spouse must not have previously owned a property in Australia after 1 July 2000 that you lived in or before 1 July 2000, whether you lived in it or not.
• The home must be your principal place of residence for at least six months within 12 months of completion or settlement.

How to Apply: Applications can be made through an approved agent or directly with the Tasmanian Government.

Western Australia (WA): First Home Owner Grant (FHOG)

In WA, first-time buyers can receive a $10,000 grant to purchase or build a new home. The property must be valued under $750,000 (south of the 26th parallel of South latitude) or $1,000,000 (north of the 26th parallel of South latitude).

Eligibility Requirements:

• You must be an Australian citizen or permanent resident aged 18 or older.
• You and your spouse/partner must not have previously owned property in Australia before 1 July 2000 or after 1 July 2000 and occupied that property before 1 July 2004
• The home must be your principal residence place for at least six months within 12 months of settlement or construction completion.

How to Apply: You can apply via an approved agent or the WA Government.

Tips for Applying for the First Home Buyers Grant

While each state has specific requirements, the general process across Australia is quite similar. Here are some tips to make the process as smooth as possible:

• Get Your Documents Ready Early
• Applying for a government grant isn’t like a school assignment – don’t wait until the last minute to gather your paperwork. You’ll need proof of identity, contracts, and residency documents. Start assembling these as soon as possible so you’re not scrambling later.
• Double-Check Your Eligibility Before Applying
• Each state has different rules for who qualifies. Check the information and relevant links above to determine your state’s exact eligibility criteria. This will save you a lot of time (and potential headaches) if you discover something that disqualifies you.
• Talk to Your Lender
• If you’re getting a loan, your lender can usually submit your grant application. This can streamline the process and help you complete everything in one go. You could also consider working with a mortgage broker. Besides helping you obtain finance, they can also help you navigate the complexities of government grants.
• Keep Copies of Everything
• After submitting your application, keep copies of all your documents. You’ll have everything if any questions pop up later or you need to check the status.

Common Mistakes and How to Avoid Them

There’s a lot you have to do when buying your first home – it’s easy to make a few mistakes along the way. This is especially true when applying for the First Home Owner Grant. Here are some common FHOG mistakes and how to avoid them:

• Assuming You’re Eligible Without Checking
• Just because you’re a first-time buyer doesn’t automatically mean you’re eligible for the grant. Each state has its specific criteria, so carefully read the requirements and check your eligibility before applying. Missing out on this step could delay or even cost you the grant.
• Not Meeting the Residency Requirement
• The grant requires that you live in the property for a certain period (usually six to 12 months). Forgetting this could mean having to repay the grant. Be sure you can commit to living in the home before applying.
• Leaving Your Application Too Late
• The grant is time-sensitive, and you must usually apply within a certain window after settlement or construction. Don’t delay getting your paperwork together, or you might miss out.
• Not Including All Owners on the Application
• If you buy your home with someone else, they still need to be listed on the application even if they aren’t applying for the grant. Leaving them off could complicate things later.

Other Incentives and Schemes for First Home Buyers

Aside from the First Home Buyers Grant, a few other government programs can make getting into your first home a little easier. Depending on where you are buying and your personal situation, you could be eligible for some extra help. Here’s a quick rundown of the central government incentives:

Stamp Duty Concessions

Stamp or transfer duty is a tax that state governments impose on property transactions. It’s calculated based on the value of the land tax on the property, and it can significantly increase the cost of buying a home. Luckily, many states offer stamp duty concessions or exemptions for first-time home buyers to relieve the pressure.

For example, in New South Wales, first home buyers can receive a total exemption on properties valued up to $800,000 and a reduced rate for homes between $800,000 and $1,000,000. Other states have similar schemes, with limits and eligibility criteria that vary. So, it’s always a good idea to double-check your state’s requirements before assuming you’re eligible.

The First Home Super Saver (FHSS)

The First Home Super Saver (FHSS) scheme allows first-time buyers to use their superannuation funds to save for a home deposit. The idea is simple: by making voluntary contributions to your super fund, which is taxed at a lower rate, you can save more efficiently than if you were saving through a regular bank account. You can withdraw up to $15,000 in voluntary contributions each year, with a total cap of $50,000, plus any earnings.

Like all government incentives for eligible home buyers, the FHSS scheme has specific conditions. For instance, you’ll need to live in the home for at least six of the first 12 months after purchasing it. You can check the full eligibility and rules on the ATO website.

First Home Guarantee (FHBG)

Under the First Home Guarantee (FHBG), the Australian Government may guarantee up to 15% of your home loan, making securing a property with a smaller deposit easier. This can also mean you don’t have to pay Lenders Mortgage Insurance (LMI).

To be eligible, you must be an Australian citizen or permanent resident aged 18 or older, with a maximum annual income of $125,000 for individuals or $200,000 for couples. The property must be intended as your primary residence, and price caps depend on the new home’s location. You can check out the Housing Australia website for more information, including a complete list of eligibility criteria.

Conclusion

Buying your first home is a big step. While it can be overwhelming, knowing about incentives like the First Home Buyers Grant can make all the difference. Remember to check the specific rules in your state, get your documents ready, and talk to your lender or mortgage broker to make the process smoother. With the right information and some planning, you’ll be one step closer to owning your first home.

Find the highest-rated and most trusted mortgage broker in your state below:

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First Home Buyers Grant FAQs

Can I get the First Home Owner Grant (FHOG) if I buy an established property?

Unfortunately, no. The First Home Buyers Grant is only available for new homes or substantially renovated properties. Established homes don’t qualify for the grant, so if you’re looking at an existing property, you should check other incentives, like stamp duty concessions.

How long does it take to receive the First Home Owner Grant?

The timing depends on whether you apply through your lender or directly with your state’s revenue office. If you apply through your lender, you may receive it at settlement or during construction. When applying directly, the grant is typically paid after completing the purchase or construction and submitting all the required documents. It can take a few weeks to process.

Do I need to repay the First Home Owner Grant?

No, the grant doesn’t need to be repaid if you meet the eligibility criteria. However, if you fail to meet the conditions, such as not living in the home for the required time, you may have to pay it back.

Can more than one applicant per person apply for the First Home Owner Grant together?

Yes. You can apply for the grant together if you’re buying a home with a partner or friend. However, remember that only one grant is paid per property, not per person, so it won’t double the amount you receive.

Can you use the First Home Owner Grant for an investment property?

No, the grant is meant for owner-occupiers. You must live in the home as your own house or primary residence for a certain period after the purchase, so it can’t be used for investment properties.

Can I apply for the First Home Owner Grant and other government incentives?

Yes, in most cases, you can apply for the First Home Buyers Grant alongside other government incentives, such as stamp duty, interest on concessions or other state-based grants. This can make buying your first home a lot more affordable.

Are there any income limits for the First Home Owner Grant?

The First Home Buyers Grant generally doesn’t have strict income limits. However, certain states or territories may have additional schemes or incentives based on your income level. It’s best to check the details for your location to ensure you meet all the eligibility requirements.

Do New Zealand citizens qualify for the First Home Owner Grant in Australia?

Yes, New Zealand citizens with a Special Category Visa (SCV) and who live in Australia can qualify for the First Home Owner Grant. They must meet the same eligibility requirements as Australian citizens, including using the property as their primary residence.

Still have questions? A chat with one of our top mortgage brokers can clear things up. Check out OurTop10’s list of the best professionals near you.