First Home Owner Grant State-by-State Guide
Buying your first home is an exciting milestone, and in Australia, you have an array of loan options designed to assist first-time buyers in their journey to homeownership.
Banks offer certain perks and incentives, and the government also has programs that provide financial support to eligible borrowers to fast-track the dream of owning a home.
There isn’t a single product called a ‘first-time home buyer loan’ per se, but there are exciting features and waived fees that lenders present to encourage newbie home buyers to apply for a home loan.
In this guide, we will explore what first home buyer loan programs are available, who is eligible, what the lenders look for, and how to get started to close on your first property.
What is the First Home Owner Grant (FHOG)?
Let’s talk first about the Australian government’s First Home Owner Grant (FHOG). This is a national scheme but is sponsored by state and territory governments. This program is designed to help individuals or families who are purchasing their first property. Under the scheme, receive a one-off grant to offset the expenses in purchasing a home.
The First Home Owner Grant was introduced to stimulate the housing market – empowering first time buyers to enter the housing market. All Australian states and territories offer FHOG, although each area has varying eligibility criteria and the grant amount paid to home buyers.
First Home Owner Grant (FHOG) across states
The grant amount depends on the state or territory in which the property is being purchased. The grant would range from a few thousand dollars to a substantial sum.
FHOG New South Wales
The First Home Owner Grant (New Homes) Scheme ranges from $10,000 to $600,000 and new home buildings worth no more than $750,000. Starting July 2023, the grant will expand to exempt transfer duty of new and existing homes up to $800,000 and a concessional rate of duty for homes up to $1,000,000.
Structures that are included in the grant are a house, townhouse, apartment, unit, owner build, a property purchased off the plan, or renovated. The home must be brand new, meaning no one has lived in it before.
As for eligibility, requirements are pretty broad, with the essential ones being that you are an Australian citizen or a permanent resident, an individual and not a company or trust, and be at least 18 years old to qualify.
Learn more about the New South Wales’ First Home Owners Grant New Homes Scheme here.
FHOG Victoria
In Metropolitan Victoria or Melbourne, a $10,000 grant is given to eligible first home buyers of a property not worth more than $750,000.
The new home can be a house, townhouse, apartment, unit, or similar. However, the grant is not available for investment property loans or home buyers who are looking for a holiday home. It must be a permanent residence or owner-occupied home.
Australian citizens, New Zealanders holding a special category visa, and other nationals who are holding a permanent visa are eligible for the grant, but must be living in Australia when the transaction is completed.
Visit the Office of Victoria website for more information about the FHOG in Victoria.
FHOG Queensland
The First Home Owners Grant in Queensland provides $15,000 for first time buyers of a new house, unit, or townhouse worth no more than $750,000. The grant lets you buy off the plan or choose to be an owner builder when receiving the one-off grant.
Check out Queensland first home owner grants website page here to learn more.
Western Australia
In Western Australia, home buyers can receive a grant of up to $10,000. Property prices in the Perth metro (south of the 26th parallel) should be valued at no more than $750,000, while houses north of the 26th parallel can reach up to $1 million.
But the grant is only meant for buying or building brand new homes – it is not available for existing properties.
WA’s First Home Owners Grant does not look at the borrower’s income for eligibility; you must be an Australian citizen, age 18 years old and above, and cannot have a previously owned property.
To learn more about the Western Australia FHOG, check the guidelines here.
South Australia
South Australia’s First Home Owners Grant (FHOG) provides $15,000 to first home buyers for properties valued at no more than $575,000. Home buyers are limited to purchasing a new home that has not been previously occupied or a home that is renovated substantially.
Eligible home buyers need to be Australian citizens, or New Zealanders holding a special category visa.
You can refer to the South Australian Revenue webpage for more details on how to apply for the grant.
Tasmania
The Tasmanian Government’s FHOG offers the highest grant out of all the states and territories. The $30,000 grant is given to first time home buyers. The property should be brand new, not previously occupied, or sold as a place of residence.
Anyone can apply as long as you or your spouse is an Australian citizen or a permanent resident, be 18 years old and over, and you will occupy the home as a primary residence. The income does not affect your eligibility, and there is no price limit on the property value to be eligible for the grant.
For more information, check out the Tasmania FHOG page here.
Australian Capital Territory
Australian Capital Territory FHOG ended in 2019 – the new program is called the Home Buyer Concession Scheme, which provides significant savings on stamp duty fees. The maximum concession amount is capped at $34,790 in 2022-2023.
Eligible home buyers must be at least 18 years old, must have an income that is not greater than the income threshold, and should be a first time home buyer who will reside in the property for at least 12 months.
Learn more about the scheme in ACT’s revenue page.
Northern Territory
Northern Territory’s FHOG provides $10,000 one-off payment to eligible home buyers who are either buying or building a brand new home. There is no cap on property value, so you could choose any price range for your first home. Furthermore, your income is not part of the criteria for being a recipient of the grant.
The eligibility requirements include: being an Australian citizen or a permanent resident, be an individual and not a company or trustee, and be a first time recipient of the grant. If the FHOG was received previously but later paid back, they may be entitled to reapply in Northern Territory.
Visit the Northern Territory FHOG page here to learn more.
FHOG Conditions
First Home Owners Grant rules may vary across states and territories, but certain conditions are common throughout. These include:
- Property type – the home being purchased must be a brand new structure or a substantially renovated home.
- Home ownership status – those who apply for the FHOG must be a genuine first home buyer, meaning they have not previously owned or co-owned a property in Australia.
- Occupancy period – home buyers are supposed to reside in the property for a specific period of time, usually within the first 12 months after settlement. It is not a vacation home, nor an investment property to be rented out.
- Citizenship or residency – the applicant, or the spouse, must be an Australian citizen or a permanent resident. In some states, a New Zealander holding a special category visa is eligible for the grant.
Additional Grants
In addition to the FHOG, some states or territories provide additional incentives for first home buyers. These include:
- Stamp duty discounts or exemptions – some states and territories waive or place a big discount on stamp duty, which can further reduce the steep upfront costs when buying a new home
- Regional property concessions – regional homes are eligible for a larger grant and a larger stamp duty discount
How to apply for the First Home Owners Grant?
Again, depending on your state or territory’s guidelines, there will be variations. But typically, prospective first home buyers need to complete an application form provided by the state or territory government.
There’s usually a timeframe of 12 months for the application to the settlement of the property. Applicants must provide supporting documents to verify identity, residency, and property transaction details.
FHOG benefits many Australians, especially in states like Victoria with over 40% grant usage.
Applying for the First Home Owners Grant is easy – our Intellichoice mortgage specialists can assist through the paperwork and application process. You can apply at the same time that you are applying for a home loan, and we can help with each step of the home-buying journey.
Our team can check the specific eligibility criteria and grant amounts in your state or territory and ensure you maximize all possible incentives. Feel free to talk to us today.
