The First Home Owners Grant (FHOG) is an Australian government incentive that helps permanent residents of Australia who have not previously owned a home to buy a property. Introduced in 2000, this grant has helped thousands of Australians to buy their first home and has reduced the time taken for many more to save a deposit to buy property. Each state and territory fund their own FHOG. As a result, the First Home Owners Grant VIC is different to other states and rule tweaking occurs yearly, depending on the state’s budget. So, what’s the current First Home Owners Grant VIC legislation and how could this grant help you? Let’s find out now.
What’s the First Home Owners Grant VIC?
For those who don’t know, the First Home Owners Grant VIC is a grant available to individuals, couples or joint property buyers who seek to buy their first home in Victoria. This grant is worth $10,000 on city-based dwellings, and up to $20,000 for regional-based homes valued at $750,000 or less.
But here’s the kicker: it’s important that you check to see if you’re eligible for the grant before you apply. This safeguard could save you both time and effort and ensures that you’re not disappointed with the outcome or left financially short when buying property.
Who Is Eligible for the First Home Owners Grant VIC?
To be eligible for the FHOG Victoria you need to be:
- An individual or person – Only a person or people are eligible to apply for the grant. If you’re buying a property as a trust or company, then you cannot apply for the grant.
- Over 18 – You must be at least 18-years-old.
- Buying your first home – You and any person buying the property must be a first home buyer to receive the grant.
- Residing in the property – You and any other person buying the property must reside in the home for at least 6-months within 12-months of the home’s purchase or construction.
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Do Any Stamp Duty Concessions Apply to the First Home Owners Grant VIC?
A stamp duty concession applies to both new home and established homebuyers purchasing their first property. This concession reduces the amount of stamp duty paid by the home buyer by up to 100% if the property value is $600,000 or less, or a portion of the payable duty on homes valued between $600,001 to $750,000.
For example, John and Mary have never bought a home before, and they buy their first property for $540,000. The stamp duty this property attracts is $25,000. However, with the current concession in place, John and Mary don’t have to pay any duty on the purchase.
Are Other Concessions Available in Conjunction With the First Home Owners Grant VIC?
There are a range of other grants available, such as the off-the-plan concession, the pensioner concession and the young farmer’s concession. All of these concessions reduce the costs of stamp duty and make buying a property more affordable.
- Off-the-plan concession – applicable for an off-the-plan property, this concession is available on house and land packages or for refurbished homes.
- Pensioner concession – a one-off concession for pension card holders who are buying property up to the value of $750,000. The full concession applies to homes up to $330,000, and a part concession applies to property valued between $330,000 and $750,000.
- The young farmer concession – Farmers aged under 35-years buying a single parcel of land may be exempt from paying duty on the first $300,000 providing the farm is valued at less than $600,000. Farmland valued between $600,000 and $750,000 may also be eligible to receive a duty concession.
First Home Owners Grant VIC Fast Facts
When it comes to anything new, often there are many questions that you’d like to ask but tend to forget. To help you overcome this problem we’ve created a list of frequently asked questions. These are as follows:
- What happens if I don’t live in my home for the minimum time specified? If you’ve received the FHOG VIC and you’ve moved out of your home before the minimum time of occupancy has elapsed, then you will have to repay the grant. At present, the minimum time for home occupancy is 6-months.
- If I’m a temporary Australian resident can I apply for the FHOG Victoria? The FHOG VIC is only available to permanent Australian residents. So, if you’re a temporary resident, then you’re not eligible for the grant.
- I will be buying a home jointly with a friend. Do we both need to be eligible to apply for the FHOG VIC? If you are buying a property with another person, then yes, you both must be eligible for the grant to receive it on the property.
- If we are applying for the FHOG VIC as a couple and neither of us has owned a property before can we each apply for the grant? The grant is only available once per property. So, your application will be joint, and you must both meet the criteria of the grant to gain approval.
- Does what I earn effect the size of the FHOG VIC? The grant is based on the value of the property you’re buying, not on the amount that you earn.
- Do I have to pay tax on the grant? No, the grant does not attract any tax. So, you will not have to declare it at the end of a financial year.
- What types of homes are eligible for the FHOG VIC? Most dwelling types are suitable for the grant such as houses, units, flats, townhomes, or any other self-contained dwelling as long as it meets local planning specifications.
- Can I apply for the FHOG VIC if I’m buying an on-site van? If your van is remaining on-site at a fixed address, and you haven’t owned a home previously, then yes, you’re eligible for the grant.
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First Home Owners Grant Links
Additionally, each territory and state government have a link to their FHOG, as listed below. However, you can also visit the Federal Government site to obtain more information.
|State / Territory||Website|
|Australian Capital Territory||revenue.act.gov.au|
|New South Wales||www.osr.nsw.gov.au|
Are you seeking to buy your first home in Victoria? Then contact eChoice, our brokers can help you understand the First Home Owners Grant VIC and assist with your application. Plus, they have access to 100’s of mortgage products. So, we’ll find you a competitive mortgage.
If you’re not buying a home in Victoria, then you may be eligible for the First Home Buyer Grant in another state. Just remember that all states have different rulings, so you need to read the legislation before applying for the FHOG.