Home loan guide / Home loans explained

How the First Home Owner Grant works

5 min read

Caitlyn Smith

A state by state breakdown of the grants you could be eligible for as a first home owner.

The First Home Owner Grant (FHOG) is paid by each state's government to eligible first homeowners to lessen the impact of the government fees involved with buying a home, and encourage new home buyers to get into the market. Although it differs from state to state, generally the FHOG is available to applicants who are over 18, permanent residents or Australian citizens, and who haven't previously owned a residential property anywhere in Australia. You may also need to live in your property for a minimum period of time once you have bought it.

How it works

Generally speaking, the FHOG is only available if you are looking to buy or build a new home, already established homes are not covered. A property is considered 'new' if it has not been previously lived in or sold as a home. A home could also be classed as 'new' if it has been substantially renovated - but this requires most of the building and rooms to have been renovated.

Your conveyancer or solicitor can apply for your FHOG for you, or you can apply directly to the state revenue office if you're a do-it-yourselfer.

At Tic:Toc, we only lend for established houses, so this excludes lending for construction, land and off-the-plan. Most First Home Owner grants are only available for construction.

Unfortunately, where a FHOG is available for an established build, we can’t consider it as part of your deposit amount. So, while you’ll be able to get the cash, it won’t be considered towards your deposit in your Tic:Toc home loan application.

If you believe you are eligible for the First Home Owners Grant you will need to apply for the grant separate to your Tic:Toc Home Loan and, if approved, you will need to confirm with your conveyancer or solicitor that the funds will be made available at settlement.

State-by-state breakdown (last updated March 2019)

South Australia

  • Up to $15,000 for eligible home buyers
  • Available for new properties up to the value of $575,000
  • You’ll need to live in the property for 6 months once you have bought it
  • You must be 18 or over
  • At least one applicant needs to be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned after 1st July 2000 (for six consecutive months or more)

In South Australia, first home owners apply to RevenueSA and, once approved, could be eligible for up to $15,000 if they meet the criteria. The FHOG is only available to first home owners who are building or buying a new home with a max value of $575,000. If you are applying with someone else, both of you will need to be 18 or over, but only one of you needs to be an Australian resident.

You can find more information specific to the South Australian FHOG here.

Australian Capital Territory

  • Only available until 30th June 2019
  • Up to $7,000 for eligible home buyers
  • Available for new properties up to the value of $750,000
  • You’ll need to live in the property for 12 months once you have bought it
  • At least one applicant needs to be 18 or over
  • At least one applicant needs to be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned between 1st July 2000 and 1st January 2004
  • You can’t have lived in a residential property that you owned after 1st January 2004 (for 6 consecutive months or more)
  • You can’t have previously received a grant

In the ACT the FHOG will only be available until the 30th of June 2019. It gives eligible first home owners up to $7,000 once they have applied to the ACT Revenue Office and been approved. The FHOG is only available for new properties with a max value of $750,000. You can still be eligible for the grant if you have owned residential property after 1st July 2000, as long as you haven’t lived in it and after 1st January 2004 as long as you have lived in it for 6 consecutive months or more.

You can find more information specific to the Australian Capital Territory FHOG here.

New South Wales

  • Up to $10,000 for eligible home buyers
  • Available for new properties up to the value of $600,000 OR;
  • When building a home with a total value up to $750,000
  • Full or partial exemption from paying transfer (stamp) duty for eligible home buyers
  • You’ll need to live in the property for 6 months once you have bought it
  • You must be 18 or over
  • At least one applicant must be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned after 1st July 2000 (for six consecutive months or more)
  • You can’t have previously received a grant

The FHOG in NSW gives eligible first home owners up to $10,000 through NSW Government Revenue. Eligible applicants must be buying a new home no more than $600,000 in value or building a home no more than $750,000 in value.

You can find more information specific to the New South Wales FHOG here.

Victoria

  • Up to $10,000 for eligible home buyers
  • Additional $10,000 for regional home buyers (until 30th June 2020)
  • Available for new properties to the value of $750,000
  • Land transfer (stamp) duty exemption or concession for eligible home buyers
  • You’ll need to live in the property for 12 months once you have bought it
  • You must be 18 or over
  • At least one applicant must be a permanent resident or an Australian citizen
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned after 1st July 2000
  • You can’t have previously received a grant

The Victorian FHOG gives up to $10,000 to eligible home buyers and an additional $10,000 to regional home buyers (for a total of $20,000 for regional first home buyers). The grant is only available on new homes no more than $750,000 in value. Home buyers who receive the FHOG will be required to live in the property for 12 months after purchasing it. As a first home buyer you could also be exempt from paying transfer duty on your property if it is valued at $600,000 or less. Otherwise you could receive a transfer duty concession if your property is valued between $600,001 and $750,000.

You can find more information specific to the Victorian FHOG here.

Northern Territory

  • Up to $26,000 for eligible home buyers (reduced to $10,000 after 6th May 2019)
  • BuildBonus grant of up to $20,000 for eligible home buyers
  • Home renovation grant of up to $10,000 for established properties
  • First home owner discount on stamp duty of up to $23,928.60 (ending 6th May 2019)
  • You’ll need to live in the property for 12 months once you have bought it
  • At least one applicant must be 18 or over
  • At least one applicant must be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned after 1st July 2000
  • You can’t have previously received a grant

Up until 6th May 2019 Northern Territory first home owners can receive up to $26,000 with the FHOG as well as up to $23,928.60 in stamp duty reductions. Sadly, after this date the amount will be reduced to $10,000 with no stamp duty reduction. First home owners also have access to a BuildBonus grant of $20,000 and a Home renovation grant of $10,000.

You can find more information specific to the Northern Territory FHOG here.

Queensland

  • Up to $15,000 for eligible home buyers
  • Available for new properties up to the value of $750,000
  • Transfer (stamp) duty concession of up to $15,925 of properties valued under $550,000
  • You’ll need to live in the property for 6 months once you have bought it
  • You must be 18 or over
  • At least one applicant needs to be a permanent resident or an Australian citizen
  • You can’t have lived in any home that you have owned

The Queensland FHOG is available on properties valued at $750,000 or less. You can receive up to $15,000 if you are eligible, as well as a transfer duty concession of up to $15,925 if your property is valued under $550,000. If you receive the FHOG you would need to live in the property for a minimum of 6 months.

You can find more information specific to the Queensland FHOG here.

Western Australia

  • Up to $10,000 for eligible home buyers
  • Available for new properties (located south of the 26th parallel of south latitude) up to the value of $750,000
  • Available for new properties (located north of the 26th parallel of south latitude) up to the value of $1,000,000
  • Transfer (stamp) duty exemption or concession for eligible home buyers
  • You’ll need to live in the property for 6 months once you have bought it
  • You must be 18 or over
  • At least one applicant needs to be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home prior to 1st July 2000
  • You can’t have lived in a home that you owned after 1st July 2000 (for 6 consecutive months or more after the 1st July 2004)
  • You can’t have previously received a grant

Depending on where it is located, a property valued up to $750,000 south of the 26th parallel of south latitude and up to $1,000,000 north of the 26th parallel of south latitude could be eligible for the FHOG. First home buyers could receive up to $10,000 and will need to live in the property for 6 months after purchasing it.

You can find more information specific to the Western Australian FHOG here.

Tasmania

  • Up to $20,000 for eligible home buyers (until 30th June 2019)
  • Up to $10,000 for eligible home buyers (from 1st July 2019 onwards)
  • No purchase price limit
  • You’ll need to live in the property 6 months once you have bought it
  • You must be 18 or over
  • You must be a permanent resident or an Australian citizen
  • No applicant can be a company or trust
  • You can’t have owned a home before 1st July 2000
  • You can’t have lived in a home that you have owned after 1st July 2000 (for 6 consecutive months or more)
  • You can’t have previously received a grant

Up until the 30th June 2019 Tasmania will offer up to $20,000 for eligible first home buyers. After that the amount will drop down to $10,000. Good news though, there’s no cap on how much your property can be valued in order to be eligible for the grant.

You can find more information specific to the Tasmanian FHOG here.

If you’d like to learn more about the great rates and options that we have click here.

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