Buying a first home in Victoria can feel overwhelming, especially when trying to understand what financial help is available.
The good news is that the Victorian government offers support to make homeownership more achievable for first-time buyers.
The First Home Owner Grant in Victoria provides eligible first home buyers with a one-off payment of $10,000 when purchasing or building a new home valued up to $750,000. This grant works alongside other benefits like stamp duty concessions to reduce the upfront costs of buying a home.
Understanding how this grant works and whether someone qualifies can make a significant difference in their home buying journey.
This guide explains everything first home buyers need to know about the Victorian First Home Owner Grant. It covers who can apply, what types of properties qualify, and how to combine the grant with other government assistance to maximise savings.
Key Takeaways
- The First Home Owner Grant provides $10,000 to eligible first home buyers purchasing or building new homes valued up to $750,000 in Victoria
- Applicants must be Australian citizens or permanent residents, be at least 18 years old, and never have owned property before
- First home buyers can combine the grant with stamp duty exemptions or concessions to increase their total savings
What Is the First Home Buyer Grant in VIC?
The First Home Owner Grant (FHOG) in Victoria provides $10,000 to help eligible buyers purchase or build their first home.
This one-off payment applies only to new or never-occupied properties and must be used for a principal place of residence.
Key Features of the Grant
The FHOG offers a $10,000 payment to first-time buyers in Victoria who meet specific requirements.
The grant is tax-free and does not need to be repaid.
This payment applies exclusively to newly constructed homes or properties that have never been occupied.
The property must be valued at $750,000 or less to qualify for the grant.
Buyers must move into the property as their principal place of residence within 12 months of settlement.
They need to live in the home for at least six continuous months.
The grant can be combined with other concessions.
First home buyers may also qualify for stamp duty exemptions or reductions on properties valued up to $1,000,000.
How the $10,000 Payment Works
The $10,000 payment goes directly towards the purchase or construction of the new home.
Buyers typically receive the funds at settlement when purchasing an established new property.
For those building a home, the payment can be released earlier in the construction process.
The State Revenue Office processes applications and releases funds once all eligibility requirements are verified.
Buyers can apply through their legal representative, conveyancer, or financial institution.
The application must be lodged within 12 months of settlement or the completion of construction.
Eligible Property Types
The FHOG covers newly constructed homes that have never been lived in.
This includes house and land packages, newly built apartments, and townhouses.
Properties purchased off-the-plan qualify if they meet the new home criteria.
Substantially renovated homes may also be eligible if the renovation meets specific standards set by the State Revenue Office.
The grant does not apply to established homes, even if they appear new.
Investment properties and homes not used as a principal place of residence are excluded from the programme.
Eligibility Criteria for the First Home Owner Grant
To qualify for Victoria’s $10,000 First Home Owner Grant, applicants must meet specific requirements related to citizenship, residency, and home ownership history.
These criteria ensure the grant supports genuine first-time buyers entering the property market.
Applicant Requirements
All applicants must be natural persons, meaning companies or trusts cannot apply for the grant.
Each applicant must be at least 18 years old at the time of application.
Applicants need to provide proof of Australian citizenship or permanent residency.
Acceptable documents include an Australian passport, Australian citizenship certificate, or evidence of permanent resident status.
Victorian residency is not required at the time of application, but applicants must be Australian citizens or permanent residents.
The property must be valued at $750,000 or less.
This value limit applies to newly constructed homes or properties that have never been occupied before.
Residency Requirement
Applicants must occupy the property as their principal place of residence for a continuous period of at least 12 months.
This occupancy must commence within 12 months of settlement for purchases or completion of construction for new builds.
The principal place of residence means the property where the applicant primarily lives.
Short absences for holidays or work commitments do not affect eligibility, but the property must remain the main home throughout the 12-month period.
First-Time Buyer Status
Applicants must never have owned residential property in Australia before 1 July 2000.
This includes any ownership interest in a home, investment property, vacant land, or company title unit anywhere in Australia.
First home buyers cannot have previously received a first home owner grant or equivalent grant in any Australian state or territory.
The State Revenue Office verifies ownership history across all Australian jurisdictions before approving applications.
Spouse or Partner Considerations
When applicants have a spouse or partner, both parties must meet the first-time buyer requirements.
A spouse includes a married partner, de facto partner, or any person the applicant is in a relationship with who lives under the same roof.
If one partner has previously owned property or received a first home owner grant, neither party qualifies for the current grant.
Both the applicant and their spouse must sign a statutory declaration confirming they meet all eligibility criteria.
This requirement applies regardless of whether both names appear on the property title.
Property Requirements and Eligible Transactions
The First Home Owner Grant in Victoria applies only to specific types of properties and transactions.
The property must be new or substantially renovated, valued under $750,000, and purchased through an eligible transaction type.
Types of Properties That Qualify
The grant covers newly constructed homes that have never been occupied.
This includes standalone houses, townhouses, and off-the-plan apartments.
The property must be primarily residential and intended as the buyer’s principal place of residence.
Substantially renovated homes also qualify if they meet specific criteria.
The renovation must involve demolishing the existing structure down to the frame or floor.
At least 50% of the property’s base value must come from the renovation work.
Properties purchased in large-scale community developments qualify as long as they meet the new home requirements.
Units, duplexes, and terraces are eligible provided they satisfy the occupancy and value conditions.
Value Limits and Contract Dates
The property’s dutiable value must not exceed $750,000.
This applies at the time the contract of sale or building contract is signed.
The dutiable value includes the land, building, and any fixtures permanently attached to the property.
For house and land packages, both the building contract and land purchase form part of the total value calculation.
Buyers must ensure the combined value stays within the cap.
The contract date determines eligibility under the current scheme rules.
Changes to grant conditions apply based on when the buyer enters into the contract of sale, not the settlement date.
Off-The-Plan and Newly Built Homes
Off-the-plan apartments qualify if they have never been occupied and meet the value requirements.
The buyer must enter into the contract before construction is complete.
A certificate of occupancy must not have been issued prior to purchase.
Newly built homes include properties where construction has finished but no one has lived in them.
The home must be purchased from a builder or developer as part of an eligible transaction.
Display homes can qualify if they meet the occupancy criteria.
The property cannot have been used for residential purposes, even temporarily.
How to Apply for the First Home Owner Grant
Most first home buyers apply through their bank or credit union, while others can lodge directly with the State Revenue Office.
The application must be completed within 12 months of settlement or construction completion, with specific documentation required regardless of the chosen method.
Applying Through Banks and Credit Unions
Most banks and credit unions are approved agents authorised to process First Home Owner Grant applications.
These financial institutions handle the entire application process on behalf of buyers.
The approved agent will check eligibility requirements and verify identity documents.
They also manage all supporting documentation and lodge the application form after the buyer signs and has it witnessed.
This method is mandatory when buyers need the grant for settlement or their first progressive payment.
The financial institution informs applicants when the grant will be paid.
Buyers should confirm with their lender whether they will act as the approved agent before proceeding with alternative application methods.
Applying Directly with the State Revenue Office
Buyers can only apply directly with the State Revenue Office if an approved agent is not lodging the application.
The application cannot be submitted until after the eligible transaction has been completed.
Applicants must provide three categories of identity documents for each person and their spouse or partner.
Category 1 requires proof of citizenship or permanent residency.
Category 2 needs evidence of identity such as an Australian driver licence.
Category 3 requires evidence of living in Australia like a Medicare card.
The FHOG-Form-02 is used by conveyancers or third parties applying on behalf of clients.
The form must be completed in blue or black ink with all supporting documents attached.
Online applications are available for buyers applying directly without a third party representative.
Lodgement Guides and Timelines
The application must be lodged within 12 months of settlement or completing construction.
The State Revenue Office provides a detailed lodgement guide that outlines specific evidence requirements based on whether the home is purchased, built, or owner-built.
Applications are reviewed within 10 working days of lodgement.
Once approved, the State Revenue Office confirms approval in writing and pays the $10,000 grant into the nominated account.
If additional evidence is needed, the office contacts the applicant directly.
Buyers must notify the State Revenue Office immediately if circumstances change and they cannot meet the 12-month residency requirement.
Applicants who disagree with a decision can request a review through the State Revenue Office.
Required Documents and Proof of Identity
Applicants must provide specific identification documents across three categories, with each applicant and their spouse or partner needing to submit three separate documents.
Additional evidence is required for certain relationship statuses and name changes.
Core Identification Documents
Each person listed on the application needs to provide one document from each of three categories.
Category 1 establishes citizenship status.
Australian citizens can use an Australian birth certificate, Australian passport, or citizenship certificate.
New Zealand citizens must provide a passport, while citizens of other countries need a passport and permanent residence visa grant notice showing the date it was granted.
Category 2 links identity to the person through photo and signature.
Acceptable documents include an Australian driver licence (both front and back), passport not already used for Category 1, Working with Children Check card, firearms licence, or Proof of Age card issued by Liquor Control Victoria.
Category 3 proves Australian residency.
Applicants can provide a Medicare card, motor vehicle registration notice, or Centrelink or Department of Veterans’ Affairs card.
At least one applicant must be an Australian citizen or permanent resident when the transaction completes.
Additional Supporting Evidence
Married applicants must provide a copy of their marriage certificate.
Divorced applicants need a divorce certificate, whilst widowed applicants must submit their deceased spouse’s death certificate.
Separated applicants require a statutory declaration containing their former spouse’s name, date of birth, current address if known, the date they married or began their relationship, separation date, and confirmation they no longer live together with no plans to resume the relationship.
Australian Defence Force members must provide documentation from the ADF showing their name and permanent membership status at the transaction completion date, plus proof of enrolment on the Victorian electoral roll.
Name and Status Change Documentation
A change of name certificate is required when the name on any submitted document differs from the applicant’s current name.
This certificate must be issued by Births, Deaths and Marriages.
If the certificate is unavailable, applicants can provide a statutory declaration explaining why they cannot obtain the certificate.
All identity documents submitted are verified with their issuing authorities to confirm authenticity and validity.
Understanding Stamp Duty Concessions and Additional Financial Assistance
Victorian first home buyers can access substantial financial relief beyond the First Home Owner Grant, with stamp duty concessions potentially saving tens of thousands of dollars and shared equity schemes reducing deposit requirements.
These initiatives from the Victorian Government aim to make homeownership more accessible.
Stamp Duty Exemptions and Concessions
Victorian first home buyers can receive full or partial exemptions on land transfer duty for properties valued up to $750,000. The stamp duty concession operates on a sliding scale based on the property’s purchase price.
For properties valued up to $600,000, eligible first home buyers receive a complete stamp duty exemption. This means they pay no land transfer duty at all.
Properties valued between $600,000 and $750,000 qualify for a partial concession. The concession amount decreases as the property value increases towards the $750,000 threshold.
Key eligibility requirements include:
- Must be purchasing your first home in Australia
- At least one purchaser must be 18 years or older
- Must move into the property within 12 months
- Must live in the home as your principal place of residence for at least 12 continuous months
The stamp duty savings are separate from the First Home Owner Grant. Buyers can access both benefits simultaneously if they meet the criteria.
Shared Equity Scheme and Deposit Assistance
The Victorian Homebuyer Fund helps eligible first home buyers enter the property market with a smaller deposit. Through this shared equity arrangement, the Victorian Government contributes up to 25% of the property purchase price.
Buyers can purchase a home with as little as a 5% deposit when using the scheme. The government’s contribution reduces the amount needed for a mortgage, making loan approval more achievable.
Participants share both property value increases and decreases with the government based on their respective ownership shares. The government doesn’t charge rent or interest on its share, though buyers must eventually buy out the government’s portion or sell the property.
Income caps apply to ensure the scheme supports those who need it most. Single applicants must earn less than $125,000 annually, whilst couples or joint applicants must earn less than $200,000 combined.
Other Victorian Government Grants
The First Home Owner Grant remains available for eligible buyers purchasing or building a new home. This $10,000 grant applies specifically to newly constructed homes or substantially renovated properties valued up to $750,000.
Regional first home buyers may access additional support through various local council initiatives. Some regional areas offer extra grants or fee waivers to encourage population growth outside metropolitan Melbourne.
Buyers experiencing family violence can access special provisions that allow them to requalify for first home buyer benefits. This relief recognises that some people need to re-enter the property market due to circumstances beyond their control.
Special Considerations and Exemptions
Victorian first home buyer programs include specific exemptions for defence force members and requirements around vacant properties. Some buyers may also qualify for support under exceptional circumstances like family violence.
Australian Defence Force Exemptions
Members of the Australian Defence Force receive special treatment when applying for the First Home Owner Grant and stamp duty concessions. These service members often face deployment to other states or overseas, which can prevent them from meeting standard residency requirements.
Current members of the Australian Army, Air Force or Navy are exempt from residence requirements. To qualify, they must be enrolled to vote in Victorian elections and be either on duty or on leave.
This exemption applies only to active service members. Australian Army, Air Force or Navy reservists do not qualify for this exemption.
Australian Public Service staff also cannot access these special provisions, even if they work closely with defence operations.
Vacant Residential Land Tax and Compliance
Victoria applies a vacant residential land tax to properties left uninhabited for extended periods. This tax encourages property owners to make their homes available rather than leaving them empty.
From 1 January 2025, vacant residential land tax applies across Victoria. The only exceptions are alpine resorts including Mt Baw Baw, Mt Buller, Mt Hotham, Mt Stirling, Falls Creek and Lake Mountain.
Property owners avoid this land tax by occupying their home for more than six months in a calendar year. This compliance requirement applies to all residential properties statewide and helps address housing supply concerns.
Victim-Survivor and Other Exceptional Circumstances
First home buyers with dependent children can access additional duty benefits beyond standard concessions. Families in this situation may receive enhanced support when purchasing their first home.
The Victorian Government recognises that some buyers face unique challenges when entering the property market. These circumstances may warrant special consideration during the application process.
Buyers experiencing exceptional situations should contact the State Revenue Office directly. Staff can provide guidance on available support and eligibility requirements specific to individual circumstances.
Tips to Maximise Your First Home Owner Grant Opportunities
Getting the full benefit from Victoria’s first home buyer schemes requires careful planning and awareness of common pitfalls. Home buyers can save thousands of dollars by avoiding simple mistakes, understanding how to stack multiple programs, and timing their property market entry strategically.
Common Mistakes to Avoid
Many first home buyers miss out on the $10,000 grant by purchasing established homes instead of new properties. The FHOG only applies to brand new dwellings that have never been occupied.
Applying after the 12-month deadline is another frequent error. Home buyers must submit their application within 12 months of settlement or completion of construction.
Missing this window means losing the entire grant amount. If one applicant has owned property anywhere in Australia before, both applicants become ineligible.
This includes investment properties, inherited homes, or properties owned overseas. Failing to occupy the property as a primary residence breaks the grant conditions.
Home buyers cannot rent out the property immediately after purchase. The property must serve as the main residence for at least 12 months within the first year of settlement.
Underestimating total costs for house and land packages catches many buyers off guard. The combined value of land and construction must stay under $750,000 to qualify.
Combining Grants and Schemes
The FHOG works alongside other government services to multiply savings. Home buyers can claim the $10,000 grant whilst also receiving stamp duty exemptions on properties valued up to $600,000.
Properties between $600,001 and $750,000 qualify for reduced stamp duty rates through concessions. This combination can deliver total savings exceeding $20,000 depending on the purchase price.
The First Home Guarantee allows buyers to enter the property market with just a 5% deposit without paying Lenders Mortgage Insurance. This scheme operates independently from the FHOG and can be used together on eligible new properties.
Victoria’s Shared Equity scheme provides another option where the government contributes up to 25% of the purchase price. Home buyers should speak with mortgage brokers who understand how these services interact and can structure applications to access multiple benefits simultaneously.
Timing Your Purchase for the Best Outcome
Interest rates directly affect borrowing capacity and monthly repayments. Home buyers should secure pre-approval before house hunting to understand their budget in the current rate environment.
Regional Victoria often offers better value than metropolitan areas. Land costs less in regional locations, making it easier to stay within the $750,000 cap whilst getting more space.
Contract timing matters when building new homes. The property value is assessed at contract signing, not at completion.
If property market prices rise during construction, buyers remain eligible provided the contract value met requirements. Construction timelines can stretch beyond initial estimates.
Home buyers should factor in potential delays when planning their 12-month occupancy requirement and application deadline. Starting the application process early through a lender or the State Revenue Office prevents last-minute complications.
Off-the-plan purchases require careful contract review. Buyers must understand sunset clauses and what happens if developers cannot complete projects within specified timeframes.
Frequently Asked Questions
The First Home Owner Grant in Victoria provides $10,000 to eligible buyers purchasing or building new homes valued up to $750,000. Applicants must meet specific criteria including being first-time buyers and Australian citizens or permanent residents who intend to occupy the property as their principal place of residence for at least 12 months.
What are the eligibility criteria for the First Home Owner Grant in Victoria?
Applicants must be Australian citizens or permanent residents aged 18 years or older. They cannot have previously owned or co-owned residential property in Australia.
At least one applicant must occupy the property as their principal place of residence for a continuous period of 12 months. This requirement begins within 12 months of settlement for existing homes or completion for newly built properties.
All applicants must sign a statutory declaration confirming they meet the eligibility requirements. The property must be located in Victoria and must be newly constructed or substantially renovated.
How much financial assistance does the First Home Owner Grant in Victoria provide?
The Victorian Government provides a one-off payment of $10,000 to eligible first home buyers. This payment applies to purchases or construction of new homes that meet the programme requirements.
The grant amount remains fixed at $10,000 regardless of the property’s purchase price. Buyers can use these funds to help with their deposit, legal fees, or other costs associated with purchasing their first home.
Are there any property value limits associated with the Victorian First Home Owner Grant?
The property must have a value of $750,000 or less to qualify for the grant. This cap applies to both purchases of newly constructed homes and contracts to build new homes.
The valuation includes the land and building costs combined. Properties valued above $750,000 do not qualify for the First Home Owner Grant, even if all other eligibility criteria are met.
Can the First Home Owner Grant in Victoria be combined with other government incentives or schemes?
First home buyers can combine the $10,000 grant with the stamp duty exemption or concession available in Victoria. Properties purchased for $600,000 or less qualify for full stamp duty exemption.
The grant can also work alongside the First Home Guarantee scheme, which is a federal government programme. The Victorian Homebuyer Fund is another state initiative that eligible buyers may access in conjunction with the First Home Owner Grant.
Some buyers also use the First Home Super Saver Scheme to boost their deposit whilst claiming the First Home Owner Grant. These programmes operate independently and can be used together when eligibility requirements for each are met.
What is the application process for the First Home Owner Grant in Victoria?
Buyers typically apply for the grant through their conveyancer, solicitor, or financial institution during the property purchase process. The application must be lodged through the State Revenue Office Victoria’s online system.
Applicants need to provide identification documents, contract of sale or building contract, and a completed application form. A statutory declaration confirming eligibility must be signed by all applicants.
The application can be submitted before or after settlement, though most buyers apply during the conveyancing process. Processing times vary, but the State Revenue Office aims to assess applications promptly once all required documentation is received.
Are there specific deadlines for applying for the First Home Owner Grant in Victoria?
Applications must be lodged within 12 months after settlement for existing new homes. For newly constructed homes, the deadline is 12 months after completion of the building work.
Buyers who miss this deadline forfeit their right to claim the grant. The State Revenue Office does not grant extensions beyond the 12-month timeframe.
It is advisable to submit applications as early as possible during the conveyancing process. Many buyers arrange for their conveyancer or solicitor to handle the application before settlement.
