First Home Owners Grant: Everything You Need to Know

If you’re looking to build a new home in Victoria, you’re in luck.

The Victorian Government has grants and concessions to help young families with their new home purchase.

One of these is the First Home Owner Grant—a $10,000 cash hand out to help you pay for your new home.

Because the First Home Owner Grant Vic 2021 can be hard to wrap your head around, we created this blog to explain it.

First Home Owner Grant 2021

What is the First Home Owners Grant (Vic 2021)?

The First Home Owner Grant (FHOG) is a payment of $10,000 to help you buy or build your first home.

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.

Am I eligible?

You’re eligible for the First Home Owners Grant (Vic 2021) if you:

are at least 18 years old at time of settlement or completion of construction

are an Australian citizen, permanent resident or permanent visa holder

can commit to living in the new home as your primary place of residence for at least 12 months

have never received the FHOG before

have never owned a home in Australia before the one you’re intending to build or buy

your partner also qualifies for the above eligibility criteria.

These are the basic rules but there are some exceptions. See SRO FHOG for the details.

Does it include a stamp duty concession?

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.

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.

The FHOG itself does not include a stamp duty waiver or concession, but a lot of people who are eligible for the FHOG are also eligible for one or more than one stamp duty exemption, reduction or concession.

How do I apply for the FHOG?

Most of the time, the bank providing your mortgage will apply for the FHOG for you.

Speak to your bank mortgage contact to discuss your FHOG.

If you’re building or buying new with JG King Homes, feel free to ask us any questions you may have about the FHOG.

While we’re not the experts on the topic, we can point you to FHOG resources and tell you when to make your application.

What other grants and concessions are there?

First Home Buyer Duty Exemption or Concession

If you’re eligible for the FHOG, and are buying or building your home on or after 1st July 2017, you may be able to get the First Home Buyer Duty Exemption or Concession.

For homes with a dutiable value of $600,000 or less, you could get a duty exemption.

For homes with a dutiable value of $600,001 to $750,000, you could get a duty concession.

Like the FHOG, this exemption or concession is only available to you once, and you must live in it for 12 months or more.

Stamp duty concession/exemption for homes in Melbourne

You might also be eligible for the temporary land transfer duty concession or exemption for the purchase of a home in Melbourne.

The home must have a dutiable value of up to $1 million and be located in the City of Melbourne local government area.

This could be a 50% concession for new residential properties where you entered the contract between 1 July 2021 to 30 June 2022.

Or it could be a full stamp duty exemption for new residential properties that have remained unsold for 12 months or more since completion of construction, where you enter your contract between 21 May 2021 and 30 June 2022.

Off-the-plan concession

Many people who are eligible for the FHOG are also eligible for the off-the-plan concession.

You might be eligible for this if you are buying land and then building your new home on it.

Where can I learn more?

Now that you know the basics of the First Home Owners Grant (Vic 2021), it’s time to take a closer look at your eligibility.

We recommend reading the SRO First Home Owner page, which contains a lot of information.

If you’re looking to buy in Melbourne, be sure to read our guide on Building a New home in Melbourne.

Remember to speak to your JG King Homes contact, and your bank, to learn more about the FHOG.