First Home Owner Grant in Victoria: What You're Actually Entitled To

Buying your first home is a big financial undertaking, and the good news is there's government support available to help you get there. The First Home Owner Grant (FHOG) is one of the most well-known forms of assistance — but it's also one of the most misunderstood. Many first home buyers either assume they don't qualify, or miss out because they didn't realise they needed to apply.

Here's a clear breakdown of what's available in Victoria, who qualifies, and how to access it.

What Is the First Home Owner Grant?

The First Home Owner Grant is a one-off payment funded by the Victorian state government, designed to help eligible first home buyers with the cost of purchasing or building their first home. It was introduced nationally in 2000 to offset the impact of GST on home ownership, and each state administers its own version.

In Victoria, the grant is currently $10,000 for eligible first home buyers purchasing or building a new home.

What Properties Qualify?

This is where a lot of people get caught out. The Victorian FHOG applies specifically to new homes — not established properties. To be eligible, the property must be:

• A newly built home that has not been previously occupied or sold as a place of residence

• A property purchased off the plan (where the home is yet to be built or is under construction)

• A home you are building yourself on land you own or are purchasing

  
  

If you're buying an established home — one that has been lived in before — the FHOG doesn't apply. That said, there are other forms of assistance available for established property purchases, including stamp duty concessions, which we'll cover shortly.

There is also a property value cap: in Victoria, the FHOG applies to new homes valued at $750,000 or less.

Who Is Eligible?

To qualify for the Victorian FHOG, you generally need to meet the following criteria:

• You must be an Australian citizen or permanent resident

• You must be 18 years or older

• You (and your spouse or co-purchaser, if applicable) must not have previously owned residential property in Australia

• You must not have previously received a first home owner grant in any Australian state or territory

• You must intend to live in the property as your principal place of residence for a continuous period of at least 12 months, commencing within 12 months of settlement or construction completion

If you're buying with a partner or friend, all applicants must meet the eligibility criteria.

What About Stamp Duty?

Stamp duty — formally known as land transfer duty in Victoria — is one of the largest upfront costs associated with buying a home, and it's an area where first home buyers can access significant concessions.

In Victoria, first home buyers are entitled to:

• A full exemption from stamp duty on new and established homes valued up to $600,000

• A partial concession on homes valued between $600,001 and $750,000, with the concession reducing on a sliding scale

  
  

These concessions apply to both new and established homes, which means even if you're buying an existing property and don't qualify for the FHOG, you may still save thousands on stamp duty.

Eligibility criteria for the stamp duty concession broadly mirror those for the FHOG — you need to be a first home buyer intending to live in the property.

The First Home Guarantee Scheme

Separate to the state-based FHOG, the federal government also offers the First Home Guarantee (formerly the First Home Loan Deposit Scheme), which allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).

The scheme is administered through a limited number of participating lenders, and places are allocated each financial year — so availability varies. Income caps and property price caps apply, and eligibility criteria should be confirmed directly, as these details are updated periodically.

How Do You Apply?

For the Victorian FHOG, you can apply:

• Through your lender or mortgage broker — if you're taking out a home loan, your lender can lodge the application on your behalf, and the grant is typically applied at settlement

• Directly through the State Revenue Office of Victoria — if you're not using a lender (for example, if you're an owner-builder), you can apply directly

  
  

It's important to apply at the right time. For purchases, the application should be lodged before or at settlement. For construction, it's typically lodged when the first progress payment is made.

The Bottom Line

The First Home Owner Grant and associated stamp duty concessions can add up to meaningful savings for eligible buyers — but the rules around property type, value caps, and eligibility criteria mean it's worth understanding exactly what applies to your situation before you start your property search.

Not sure what you're entitled to as a first home buyer in Victoria? Talk to the Cultivate Financial team — we help first home buyers navigate grants, concessions, and the right loan structure from day one.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend you consider whether it is appropriate for your circumstances. Grant eligibility criteria, property value caps, and scheme availability are subject to change — we recommend confirming current details with the State Revenue Office of Victoria or a qualified adviser before making decisions based on this information.