First home owners grant

FHBG oh you know me

First Home Owner

Buying your first home is an exciting milestone, but it can also be a daunting financial challenge. Fortunately, for those looking to enter the property market in Victoria, Australia, the First Home Owner Grant (FHOG) offers a helping hand. This initiative aims to make homeownership more accessible for first-time buyers, particularly those interested in new or newly built homes.

What is the First Home Owner Grant?

The FHOG is a state government scheme designed to assist eligible first-time homebuyers in Victoria. It provides a one-off payment to help offset the cost of purchasing or building a new home. The grant has been a significant factor in helping many Victorians take their first step onto the property ladder.

How much is the grant?

As of 2024, the FHOG in Victoria offers:

  • $10,000 for new homes built in metropolitan Melbourne and major regional centres

  • $20,000 for new homes built in regional Victoria

This substantial sum can make a real difference when it comes to covering initial costs or contributing to a deposit.

Eligibility criteria

To be eligible for the FHOG in Victoria, applicants must meet several criteria:

  1. Be a first-time homeowner in Australia

  2. Be an individual, not a company or trust

  3. Be at least 18 years old

  4. Be an Australian citizen or permanent resident

  5. Move into the new home as a principal place of residence within 12 months of completion and live there for at least 12 continuous months

Property requirements

The grant applies to new homes only, which includes:

  • Newly constructed homes

  • Off-the-plan purchases

  • Homes built by an owner-builder

  • Substantially renovated homes

The property's value must not exceed $750,000 for contracts signed on or after 1 July 2017.

Additional benefits

In addition to the FHOG, first-time buyers in Victoria may also be eligible for:

  • Stamp duty concessions or exemptions

  • The First Home Loan Deposit Scheme (a federal initiative)

  • Various first home buyer grants offered by some local councils

How to apply

Applications for the FHOG can be made through an approved agent (usually your bank or lender) or directly to the State Revenue Office Victoria. It's advisable to apply when you sign the contract to buy or build your home.

Conclusion

The First Home Owner Grant in Victoria represents a significant opportunity for those looking to enter the property market. By providing financial assistance and incentives, it helps turn the dream of homeownership into a reality for many Victorians. However, as with any major financial decision, it's crucial to do your research, understand all the terms and conditions, and seek professional advice if needed. With careful planning and the boost provided by the FHOG, your journey to owning your first home in Victoria could be closer than you think.