First Home Owners Grant Victoria (FHOG - VIC): 2022 Guide

First Home Owner Grant VIC Calculator

Our First Home Owners Grant (FHOG) calculator is designed to work out which government benefits such as grants and stamp duty exemptions that you may be eligible for.

Disclaimer: Please note that we’ve assumed that you’ve met standard first home buyer criteria.

If you’re eligible for the FHOG VIC, Home Loan Experts can help you apply for the FHOG and throughout your buying process. Call us on 1300 889 743 or enquire online to talk to one of our specialist mortgage brokers.

However, if you’re still deciding, continue reading.

Frequently Asked Questions About First Home Owners Grant VIC

How Much Is The First Home Owners Grant VIC?

The FHOG for Victoria is worth $10,000 if you build/buy in Victoria. It is only available for first home buyers looking to buy a newly built home or choosing to build a new home in regional Victoria.

Most properties such as a house, townhouse, apartment, or unit are eligible for the first home buyers grant in Victoria. However, the home you’re buying must be:

  • valued at $750,000 or less (that is, the contract price of the construction)
  • less than five years old
  • the first sale of the property as a residential property

Can You Get A First Home Owners Grant On Existing Homes?

Established properties are no longer eligible for the grant. However, you may be eligible for stamp duty exemption or discounts in Victoria, provided you meet all other eligibility criteria.

Can You Use The First Home Owners Grant As A Deposit?

Yes, you can use the First Home Owners Grant as a deposit. However, it isn’t normally enough on its own.

Generally, you’ll need 5-10% of the purchase price, including the FHOG. Also, if you’re building a home, then your grant isn’t available until construction commences.

What you can do instead is use a guarantor, then you won’t need any savings whatsoever and you’ll avoid paying Lenders Mortgage Insurance (LMI).

Can New Zealand citizens get the First Home Owners Grant?

Yes, New Zealand citizens also qualify for the First Home Owners Grant. To be eligible as an NZ citizen in Victoria, you must be living in Australia when the eligible transaction is completed.

In most circumstances, the grant is not available for an NZ permanent resident, unless you have a spouse or partner who is an Australian citizen.


FHOG for Regional Victoria 2021

The $20,000 regional First Home Owner Grant ended on 30 June 2021. However, it is still available on contracts entered into from 1 July 2017 through 30 June 2021. This means the Victorian Government will still provide a $20,000 grant to those first home buyers purchasing or building new properties in regional Victoria up to the value of $750,000.

If you entered into a contract to buy or build a new home in regional Victoria after 30 June 2021, you may be eligible for the $10,000 FHOG.

You can read more about this on the Victorian State Revenue Office website here.

First Home Owners Grant VIC Eligibility

To be eligible for the First Home Owners Grant in VIC, there are a few rules you need to follow, which are:
You or your spouse/partner must not have previously received an FHOG anywhere in Australia.

  • You must not have owned a home or other residential property in Australia, either jointly or separately, prior to 1 July 2000. However, you may still be eligible for the FHOG if you or your spouse/partner bought property on or after 1 July 2000 but have not lived there as your home.
  • You must live in the home for at least 12 months within 12 months of settling on the property or from when the home is fully built. Defence personnel are exempt from this residency requirement.
  • You must be aged 18 or over and be either an Australian citizen or permanent resident by the time you settle or when the home is ready to be occupied.
  • You must apply as an individual and not as a company or a trust.

Note: These criteria apply even if your spouse/partner is not an applicant with you for the FHOG.

Can a couple both get first home buyers grants?

Unfortunately, no. Even if you and your partner/spouse are both eligible, only one person will be granted the first home buyers grant.

How To Apply For First Home Owner Grant VIC

In almost all cases, the bank or lender that you’re getting the home loan from will lodge the First Home Owners Grant (FHOG) application on your behalf. Lenders act as an approved agent on behalf of the state government and will process the payment of your grant with your loan funds.

If you require the grant for settlement or first drawdown/progress payment, however, you must lodge your application with an approved agent.

You can only lodge your application directly with the State Revenue Office (SRO) Victoria if an approved agent is not lodging the FHOG application form on your behalf. In such cases, we recommend that you apply through a solicitor/conveyancer.

When doing so, you or your solicitor must send the SRO the original application form, which needs to be downloaded, printed and completed in blue or black ink, together with copies of your supporting documents. Applications cannot be lodged with the SRO until after the completion of the eligible transaction.

For more details, please refer to our full guide on lodging your First Home Owners Grant (FHOG).

Home Loan Experts has helped thousands of first home buyers apply for the FHOG and buy their first home. To simplify this complex process, talk to one of our specialist mortgage brokers by calling us on 1300 889 743 or enquire online.

Do First Home Buyers Pay Stamp Duty In Victoria?

Stamp duty concessions are available to first homeowners in Victoria whether you buy an established home or a newly built home.

As long as the property is valued below $600,000, first home buyers in Victoria don’t pay stamp duty at all. If you pay between $600,000 and $750,000 for your first home, you may still be eligible for concessions on stamp duty.

Note: To be eligible for stamp duty exemptions or concessions, you must have entered into a contract of sale to buy your first home on or after 1 July 2017

Victorian Home Buyer Fund: A Shared Equity Scheme

The Victorian Homebuyer Fund, which is budgeted at $500 million, is a shared equity scheme that allows eligible first home buyers to purchase a home in Victoria with a deposit as low as 5%.

The Victorian government will contribute up to 25% of the purchase price, whereas, first home buyers will be able to take out a loan that is worth 70% of the property value. However, the government shall retain its stake in your property until you sell it or buy out the state’s share.

House Price Your Contribution VIC Government’s Contribution Borrowing From Lender
100% 5% 25% 70%
$400,000 $20,000 $100,000 $280,000

The caveat is that, as the government owns 25%, if the property’s valuation increases to $500,000 in five years, you will have to pay $125,000 to buy back the 25% from the government.

The eligibility criteria are as follows:

  • You are an Australian citizen or permanent resident
  • You are at least 18 years old at the time of settlement
  • You have saved a deposit of at least 5%.
  • Your gross annual income is $125,000 or less (for individuals) or $200,000 or less for joint applicants.
  • You are buying the property as a principal place of residence.
  • You must become a registered owner of the property you’re buying.
  • Your property must remain insured. You will need to provide a certificate of currency during each annual review period.

You can read more about the Victorian Home Buyer Fund here.

When Does The First Home Owners Grant Get Paid in VIC?

In Victoria, the date that the grant is paid depends on whether you’re building or buying new and whether you’re applying through an approved agent (your finance provider) or yourself.

For a detailed look, see the table below.

Transaction Type Applying Through Payment of the Grant
Purchase of a new, established or off the plan home Approved Agent

SRO

At date of settlement by approved agent.

Payment will be made to your nominated account by the SRO within 14 days of lodging your application. An application will only be considered after settlement

Contract to build Approved Agent
SRO
At date of first progressive payment by approved agent
Payment will be made to your nominated account by the SRO within 14 days of lodging your application. An application will only be considered after issue of the Certificate of Occupancy.
Owner builder Approved Agent
SRO
On receipt of Certificate of Occupancy by approved agent.
Payment will be made to your nominated account by the SRO within 14 days of lodging your application. An application will only be considered after issue of the Certificate of Occupancy
Terms contract SRO Payment will be made to your nominated account by the SRO within 14 days of lodging your application. An application will only be considered after providing evidence of possession.

Source: Victoria’s SRO

If you’re lodging your FHOG application directly with the State Revenue Office, then applications are considered only after settlement or after the Certificate of Occupancy has been issued. Payment will be made within 14 days of lodging your application.

How Do You Buy Your First Home In Victoria?

Buying a first home can be a daunting process. If you’re looking to buy your first home in Victoria or anywhere else in Australia, we’ve got you covered.

We’ve created a home buyers course that breaks down the complex home buying process into simple steps that aim to help fulfil first home buyers’ dream of homeownership.

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