First Home Owner Grant Victoria

Saving for a first home can be a significant undertaking, with a house purchase likely to be one of the largest you’ll ever make. With this in mind, it’s good to know you may be eligible for a financial helping hand from the Victorian State Government. The First Home Owner Grant in Vic can help you get into your first home sooner, and you could even be eligible for valuable savings on stamp duty.

Vic first home buyer grants and other support: What’s available?

The First Home Owner Grant (or FHOG) in Vic is designed to help first home buyers get into the property market sooner. It offers a lump sum to eligible buyers that can be put towards the cost of buying or building a new home.

A number of rules surround eligibility for the First Home Owner Grant in Victoria, including limits on what you can pay for your first home to be eligible.

First home buyers may also be eligible for an exemption or concession on the duty (a type of tax) that’s ordinarily payable to the Victorian state government on property transactions. This can mean a saving of thousands of dollars for those who qualify.

Compare Home Loans

How much is the First Home Owner Grant in Vic?

The First Home Owner Grant in Vic is worth $10,000, but it’s only available if you buy or build a brand new home.

Your first new home can be a house, townhouse, apartment, or unit. Newly renovated homes in Vic can also qualify for the First Home Owner Grant, but the renovations must be substantial – and you must be the first person to live in the home since it was renovated.

The common thread is that the price you pay for a new home must be $750,000 or less. Pay more than this, and you won’t be eligible for the first home buyers grant in Victoria.

Am I eligible for the First Home Owner Grant in Vic?

Along with the price limit of $750,000 on the property you buy, your eligibility for the First Home Owner Grant in Vic hinges on meeting a few other conditions.

• You and anyone else you’re buying with must be at least 18 years old at the date of settlement or completion of construction, and
• You, or at least one other person you’re buying with, must be a permanent resident or Australian citizen, and
• You or your spouse, partner or co-buyer cannot previously have owned a home or received a First Home Owner Grant in Australia.

In addition, you need to live in the home for at least 12 months within a year of taking ownership of it, or within 12 months from the date of completion of construction.

You could still be eligible for the First Home Owners Grant in Vic if you and/or your spouse or partner previously owned a property but didn’t live there. This may apply to investment properties.

How to apply for the First Home Owner Grant in Vic

You can apply for the First Home Owner Grant in Vic in one of two ways.

1. If you need the First Home Owners Grant in Vic as part of your home-buying deposit, or to make the first progress payment on a new build, you need to lodge your application through your lender or mortgage broker.
2. The second option is to send your application directly to the State Revenue Office (SRO) of Victoria. However, the SRO says you should only do this if your lender isn’t lodging on your behalf.

Are first home buyers in Vic exempt from stamp duty?

The First Home Owners Grant may not be the only benefit you’re entitled to as a first home buyer in Vic.

If you meet the eligibility conditions, you can apply for a first home buyer duty exemption, concession or reduction. This would mean paying zero stamp duty if your first home costs up to $600,000 – that’s a potential saving of around $31,000. A concessional (discounted) rate of duty can still apply if you pay between $600,001 and $750,000.

Unlike the First Home Owner Grant, stamp duty savings in Vic apply no matter whether you buy a new or established home.

Compare Home Loans

Main image source: FiledIMAGE/Shutterstock.com.