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First Home Owner Grant Q&A

Purchasing your first home is an exciting achievement and whilst it can seem daunting, if you do your research and you’re prepared, it can be a great decision that sets you up for life.

If you’re considering buying a home for the first time, you’ve probably heard about the First Home Owner Grant (FHOG). It’s a government scheme for eligible first home buyers that contributes money towards purchasing your first property. The FHOG can provide a helpful boost, as long as you understand how it works.

Here are some common questions and answers to get you started, specifically around accessing the FHOG in Victoria:

Q1: How much is the FHOG worth?

At the time of writing, the FHOG is worth $10,000 if you’re buying in metropolitan Melbourne or $20,000 if you’re buying in regional Victoria.

Q2: Who’s eligible to receive the FHOG?

There are several criteria that apply including:

  • Must be a permanent resident or citizen of Australia
  • Can never have received the grant or owned residential property
  • Must be aged 18 or over (discretionary)
  • Must buy a new or established home as an individual (not a company or trust)
  • Must occupy the home as their principal place of residence for at least 12 months
  • Must apply for the grant within 12 months of settlement.

Q3: Do all types of properties apply?

Your property can be a house, townhouse, apartment, unit or similar but it must be valued at $750,000 or less. It must also be the first sale of the property as a residential premises and the home must be less than five years old. Investment properties and/or holiday houses don’t make the cut.

Q4: How do I apply?

In most cases, the bank or credit union providing you with finance will lodge your FHOG application on your behalf (so double check with them that they’re doing this for you). In special cases, you may be required to lodge your application directly with the State Revenue Office.

Q5: When do you receive the grant?

The timing of your FHOG payment depends on the contract you sign to buy or build your new home, and whether you lodge your application directly or via your lender. The grant is usually paid at the time of settlement to your lender and applied directly to your home loan. If you are building a home, the grant will be approved when your first loan repayment is due.

Q6: Where can I find out more information?

Whilst utmost care is taken to ensure information on our website is kept up-to-date, it’s always useful to check the official government website for FHOG facts. In Victoria, that’s the State Revenue Office.


The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Fairhaven Homes recommends that you consider whether it is appropriate for your circumstances and that you seek independent legal, financial, and taxation advice before acting on any information in this article.