Available Home Builder Grants (17 Nov 2022)

Nov 17, 2022
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What is the first home buyers grant and home builder grants?

If you’re looking to buy your first home in Victoria, you’re in luck. The Government has several different programs to help Victorians purchase a new home.

Government offered grants can be hard to wrap your head around as they change regularly, have limited spots available and in several cases eligibility requirements need to be fulfilled to receive the benefit. We have created this blog to help explain the current programs available and your eligibility.

Available Grants

  1. Home Guarantee Scheme
  2. Stamp Duty Concessions
  3. First Home Owner Grant (FHOG)

Don’t have a big enough deposit?

Solution: Home Guarantee Scheme

When you take out a mortgage, if you have less than 20% deposit, you will need to pay lenders mortgage insurance (LMI) (LMI is the bank’s insurance policy protecting them if you default, not an insurance protecting the borrower). LMI is a fee that is charged by banks when a customer does not have 20% deposit available (this fee is avoidable for any customer that can produce a deposit of 20% or greater of the purchase price).

The Home Guarantee Scheme has two major benefits for a customer:

  1. Lowers the minimum deposit requirement down to as little as 2%
  2. Customer does not pay LMI

The government guarantees your mortgage lender the remaining deposit amount (up to 15%)

Key information pertaining to eligibility requirements:

  • Your salary and relationship status can have an impact
  • Max property value limits apply:
    • Capital cities and regional centres $800,000
    • Rest of the state $650,000
  • You don’t have the freedom to choose from all lenders with this grant. You must use one of those listed here.
Am I eligible for this?

The grant has three categories, each with a unique number of places each financial year.

  1. First Home Guarantee – 35,000 places
  2. Regional First Home Buyer Guarantee – 10,000 places
  3. Family Home Guarantee – 5,000 places

To determine your eligibility use this tool.

How to apply

Once you have the minimum 2% deposit, contact a Participating Lender to discuss your individual circumstances.

Stamp Duty is too expensive!

Solution: Stamp Duty Concessions

Normally when you buy a new home, you pay a land transfer duty, also known as stamp duty. The amount you pay depends on the value of the property (for an established property this equates to approximately 5%). There are several exemptions, reductions and concessions for stamp duty. This means that sometimes you don’t have to pay stamp duty or you pay a discounted amount.

If you’re a first home buyer the following stamp duty benefits can apply:

  1. Buying a house for $600,000 or less you will not pay any stamp duty.
  2. Buying a home between $600,000 and $750,000 the stamp duty is at a reduced amount.

You can determine your eligibility here, but in summary:

  1. Your new home must be valued at $750,000 or less and be a new home.
  2. You must occupy the home as your principal place of residence for at least 12 months, commencing within 12 months of settlement or completion of construction.
How to apply

Your conveyancer or solicitor will usually apply for the exemption, concession or reduction, when they complete the Digital Duties Form as part of the electronic conveyancing process.

Up to $20,000 back in your pocket

Solution: First Home Owners Grant (FHOG)

The First Home Owner Grant (FHOG) is a one off payment. You might be wondering how much is the first home owners grant? The first home builder grant is $10,000 for Melbourne properties and $20,000 for regional areas.

It’s paid by the Victorian Government through the State Revenue Office.

You can only get this grant for a new home that has never been bought or lived in before. Therefore, JG King Homes are eligible as they are newly built and have never been occupied.

Another rule is that the home must be valued up to $750,000. In other words, you can’t get the grant for a new home worth more than $750,000.

You can only get the FHOG once and never again.


You can determine your eligibility here, but in summary:

  1. You or your partner, cannot have owned a home or other residential property in Australia, either together or separately, before 1 July 2000
  2. You or your partner, cannot have received a first home owner grant before in any state or territory of Australia
  3. Your new home must be valued at $750,000 or less and be a new home.
  4. You (or at least one applicant) must occupy the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction.
How to apply

In the majority of cases, the bank or credit union that is providing your finance (see the list of approved agents) will lodge the first home builder grant application form on your behalf.

Now that you know the basics of the current government grants, remember to speak to a New Home Advisors at JG King Homes and your bank for any specific questions you may have.

Some other helpful resources can be found on the Australian Government's Moneysmart website. Here you will find information on buying your first home to help you determine if you are ready to take the next step towards home ownership. In addition, a budget planner and a mortgage calculator that will help you work out what repayments you can afford.