First Home Owner Grant (FHOG)

The First Home Owners Grant is a financial helping hand from your state or territory government to help you buy your first home.

What is the FHOG?

Have a question about First Home Owner Grants?

The First Home Owner Grant is a lump sum of cash available to first home owners to help with the cost of buying a first home or vacant land to build a home on. The Grant doesn’t have to be repaid, and it’s not taxable, but there are strings attached.

We all like free money, and that’s exactly what the First Home Owner Grant (FHOG) is – a lump sum of cash to help with the purchase of your first home.
The First Home Owner Grant is funded by state governments, so different amounts are available in each of state and territory. Exactly how much you will receive depends on where you are buying. In regional Victoria, for instance, the FHOG is worth $20,000.

Many Australians are wondering if they can get the First Home Owners Grant. There are different rules depending on the State that you are in, but the basic First Home Owner Grant conditions are:

  • You must be a permanent resident or an Australian citizen. If you’re co-buying with someone
    else, at least one of you must be a permanent resident or Australian citizen
  • You must not previously have owned or co-owned a home in Australia or have received an
    Australian First Home Owner Grant in the past.
  • You must be buying a home to live in – not as an investment property
  • You need to live in the home for at least six months after purchase,
  • You must be a natural person (not a company or a trust), and
  • You need to be aged over 18.

Other conditions may apply depending on your state/territory. In many states, the First Home Owner Grant is only available if you buy or build a new home. In some states, you may not be eligible for the FHOG if you pay over a certain value for your first home.

As each state has its own set of rules for the First Home Owner Grant, it is important to understand the guidelines that apply for your area.

Yes! The whole purpose of the First Home Owner Grant is to help you manage the costs of owning a home, though it may not be enough to form your whole deposit.

Your application for the First Home Owner Grant usually only takes a week or two to be processed, however exactly when you receive the Grant depends on whether you are buying or building.

If you’re buying a home that’s already built, you’ll usually receive the funds when the property settles – that’s the stage when all the paperwork is completed and the keys to your home are handed over to you.

If you’re building a new home, the First Home Owner Grant is usually paid when you first drawdown your loan – and that’s typically when the slab is laid.

Applying for the First Home Owner Grant is easy, and your Mortgage Choice broker can guide you through the paperwork. Here’s a form you can fill out to start the application process.

Basically, there are two ways to apply for the First Home Owner Grant. You can apply through your lender at the same time you apply for your home loan – this is where your Mortgage Choice broker can help. Or you can apply directly to the state government body (usually the Revenue Office) that handles the First Home Owner Grant in your area.

That depends. Some states offer generous savings on stamp duty for first home owners, others do not offer concessions on stamp duty at all. In a number of states, saving on stamp duty are only available if you buy or build a new home.

This makes it important to know whether stamp savings are available to first home buyers in your part of Australia – stamp duty can be expensive, and you may need to add the cost to your home buying budget.

Stamp duty is one of the upfront costs that apply when you buy a home or vacant land. It is a type of state government tax, so the rates of duty differ between states. The common thread is that stamp duty is calculated as a percentage of the price paid for your home.

Put simply, the amount of stamp duty you will pay depends on where you are buying, and how much you pay for your home or vacant land.


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Find out if you're eligible for the First Home Owner Grant!

Government support by state

Using your superannuation

First home buyers super saver scheme (FHSS)

The Australian Government introduced the First Home Super Saver Scheme (FHSS) to assist first home buyers.

The scheme allows first home buyers to save money for a deposit through their superannuation fund.

It will be administered by the Australian Taxation Office who will be responsible for ensuring that users of the scheme are first home buyers and that the funds withdrawn will be used to buy a property.


An individual can have a portion of their pre-tax income salary sacrificed into their superannuation, and this will be taxed at the regular superannuation rate of 15%.

Self-employed workers or those whose employer does not salary sacrifice can make their own contributions and claim a tax deduction.

Individuals can also make voluntary contributions as long as they’re within the current superannuation caps.

Under the scheme, first home buyers can only voluntarily contribute up to $15,000 per financial year, and $30,000 in total.

To be eligible, individuals must:

  1. Be 18 years or older
  2. Have never owned property in Australia
  3. Have never used the FHSS scheme before

Eligibility is based on an individual, which means that if someone is buying a property with another eligible person, they can each contribute their own FHSS funds. For example, a couple buying a home together can contribute up to $60,000 for a purchase.

Individuals who have previously owned property in Australia may be eligible if they can prove they suffered a financial hardship that resulted in the loss of ownership of a property. They can apply for consideration from July 1.

From July 1, first home buyers that meet the eligibility requirements can dip into their super to access the funds they have contributed.

These can be combined with their own other savings to be used as a deposit for a property purchase.

The First Home Buyers Super Scheme funds will affect a person’s tax for the year in which they make the request to access them. They will receive a payment summary and they will have to include both the assessable and tax-withheld amounts in their tax return.

Renting vs buying

Should you rent or buy your own home?

As a homeowner, your mortgage repayments might be higher than your rent, and yes, a home loan is a long term commitment. But in many ways, repaying a loan is a form of forced saving.

When renting, you can live where you want, and you don’t need a huge deposit. But when you buy, it's your asset which has the potential to grow in value. You’re not just paying for a roof over your head, you’re building equity in an asset that is likely to grow in value over the years.

Watch this video to find out more.

Additional resources

MC Eguide FHB Grants 255X360

First home buyer 2021 grants guide

If you're looking at buying your first home it's worth knowing what Government help is available. This guide will walk you through all the grants and schemes to help you save.

Download now

Mortgage Minute: Overview of grants

First home buyer grants

If you're ready to buy your first home or just doing a bit of research, it's important to understand what Government support is available when it comes to grants and incentives and how much you could save!

Hear Emma provide a detailed look into the state-based offers and grants available to first home buyers in your state.

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More videos and tips

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