A lump sum of $10,000 or $15,000 can be a huge help for aspiring homeowners hoping to get a home loan and into the market sooner.
The First Home Owner Grant (FHOG) is an Australian Government initiative designed for first-time home owners. Securing the grant can potentially shave months or even years off the time it takes to save up for a housing loan deposit.
First Home Owner Grant eligibility rules and amounts differ from state to state.
Go to your state’s website to see how to apply for this one-off grant. If you live in a state with lower median house prices, the grant money will go further as a percentage of your deposit.
All applicants need to be 18 and over, be an Australian citizen or permanent resident, and purchase the house in their name (not a company or trust). The FHOG is only available to people who have not previously owned a property.
Eligible Queensland residents are entitled to $15,000. This can go toward building a new house, unit, townhouse, granny flat, modular home or a substantially renovated home valued at under $750,000 (including land).
All owners must be included on the grant application, as spouses are considered. You only need one application per house. Following the purchase, you must move in within 12 months and reside there for six continuous months. You can, however, rent out one or more rooms as long as you still live there.
Use this eligibility tester: Call 1300 300 734 or complete this enquiry form. You must apply within a year of taking possession of the new home or once a build is complete.
You can apply through an approved agent or directly through the Queensland Revenue Office.
The grant is paid out at different times depending on when you apply, so the Queensland Government suggests not using the grant as a deposit.
If you apply through the banks, it usually comes through at the settlement of a new home or on the first payment for a build. If it’s arranged through the Queensland Revenue Office, the grant will be paid when you have a registration confirmation statement for a new home or a final inspection certificate for a build.
Stamp Duty Concession: You can claim a first home concession if the property is valued under $550,000, saving up to $15,925. For homes above $550,000, a concession still may apply. Use the Eligibility Tester Tool.
A $10,000 grant is available for people buying or building their first new house, townhouse, apartment, or unit. For new builds, the contract price for construction must not be greater than $750,000.
The property cannot have been previously sold as a place of residence, occupied as a home, or used for Airbnb. At least one applicant must live in the property for at least 12 months, within 12 months of settlement or completion of the build.
You can apply for the grant through an approved agent or the State Revenue Office Victoria.
The grant payment date depends on whether you’re buying or building a house, as well as how you apply. For example, if you purchased a new home and applied with an approved agent, the grant will be paid at the settlement date. If you go through the state website, the application will only be considered after settlement.
A $15,000 First Home Owner Grant is available for a new house, flat, unit, townhouse, or apartment.
The property’s market value needs to be $575,000 or less, and it must not have been previously occupied or sold as a place of residence.
Applicants must live in the home for a continuous period of six months, within 12 months of the settlement or construction completion date.
For new builds, the grant either comes through on the date of the first progress payment or five days after, and it’s usually quicker to go through an approved agent.
New South Wales
A $10,000 grant is available for a new house, townhouse, apartment, or unit whose price does not exceed $600,000 (or $750,000 including the land). Additionally, the property cannot have been lived in before. If most of the home was replaced during or after renovations, and it’s the first time it’s been sold since the updates, you might also be eligible for the FHOG.
You must live there for at least six continuous months within 12 months of purchase. And you must apply for the First Home Owner Grant through an approved agent.
Payment dates differ depending on your situation. For a new home, expect to see the grant payment within 15 working days of lodging a complete application, post-settlement.
Stamp Duty Concession: You may be eligible for a full or partial exception. If you’re purchasing a property up to $1.5 million you can pay the annual property tax instead of stamp duty.
A $10,000 payment is available for eligible residents. The FHOG is open to first-time homeowners who buy or build a new home to live in, while a home that’s been substantially renovated may be considered as a new house.
Western Australia is unique in that the value of the transaction may impact eligibility and the home’s location determines the cap.
The WA Government specifies:
- Building and land value up to $750,000 south of the 26th parallel. All Perth metropolitan areas are south of the 26th parallel.
- Building and land up to $1,000,000 north of the 26th parallel.
You must reside in the home for a continuous period of six months, within 12 months from the date of settlement or completion. You can rent out rooms, as long as you satisfy the eligibility requirements.
See if you qualify for the First Home Owner Grant with the online tool.
The grant payment date is specific to your situation. If you applied for a new house with an approved agent, expect to see the funds on the date of settlement. If it’s completed through the WA Government it can take up to six weeks, post-settlement.
Stamp Duty Concession: If you qualify for the FHOG, you might also be eligible for the first home owner rate of stamp duty. If your home is valued at under $430,000, you’ll receive a full exemption.
Tasmania offers the largest First Home Owner Grant of up to $30,000 for eligible residents.
This is available for first-time owners who are buying or building a new house, with the $30,000 amount available for transactions until 30 June 2023.
You need to live in the house for a continuous period of six months, within 12 months of completion.
For new builds, the grant payment will be made following the completion of laying the foundations’ slab. For new homes, the payment is sent to your financial institution on the property’s settlement.
Stamp Duty Concession: A concession of 50% on property transfer duty is available for first-home buyers on houses valued at up to $600,000.
Eligible first home owners can receive $10,000 for a new or substantially renovated property.
You can apply through an approved agent.
At least one applicant must reside in the home for a continuous period of six months, within the 12 months of the completion or settlement date.
You’ll receive the money at settlement or when your name is registered on the property title. For new builds, expect to see the money when the foundation has been laid and progress payments of at least $10,000 have been made (excluding the deposit).
Stamp Duty Concession: There is no current discount on stamp duty. This is a helpful calculator to work out the amount you can expect to pay.
Australian Capital Territory
The ACT does not offer the First Home Owner Grant, but it does have the Home Buyer Concession Scheme, which helps buyers avoid stamp duty on property purchases for new builds and established homes.
There is an income threshold and all buyers (plus partners) must not have owned any property in the past two years.
To be eligible, at least one buyer needs to live in the home for a continuous period for one year, within the first 12 months of completion or settlement.
The income threshold is classified by the number of dependent children in the home. If you have two children, the total gross income threshold is $176,660.
There’s also a home buyer concession ceiling of $34,790 for 2022-23.
Home loans are not overly complicated, but having a rudimentary understanding of the fundamentals will give you a head start as you set out on the great Aussie home ownership journey.