First Home Owners Grant (FHOG)

house on top of pile of coins

The First Home Owner Grant, succinctly put as FHOG, is a substantial amount of cash available to first home buyers to encourage and assist with the cost of purchasing or building their first house. The Federal government introduced this first home buyers grant as a national scheme. However, the FHOG is funded by the states and territories, so the rules vary in each state. The first home buyers grant does not have to be repaid and is non-taxable, although there are caveats.

How Much is First Home Owner Grant?

Since each state and territory has its legislation and eligibility requirements, the First Home Owner Grant differs from state to state. The value of FHOG varies based on where you are buying, whether you’re purchasing a new or existing home, whether you’re purchasing vacant land and then constructing, and the price of the house you are buying.

How to be Eligible for the First Home Owner Grant (FHOG)?

The eligibility criteria for First Home Owner Grant are slightly different throughout Australia, but some rules are the same for every state. Your income will not influence your eligibility for FHOG. To qualify for the FHOG, you must:

  • Be of age 18 years or over.
  • Be an Australian citizen or permanent resident. If it's a co-buying situation with you and another person, then at least one of you must be an Australian citizen or permanent resident.
  • Have never previously owned or even co-owned a home in Australia or have received Australian first home buyers grant before.
  • Be purchasing a property to live in and not as an investment property.
  • Plan to live in the home for at least 6 months after purchase.
  • Be a real person (not a company or a trust)

FHOG may be beneficial to you if you are a first home buyer purchasing or building a “new home,” i.e., a property that hasn't been previously used as a residence or sold as a home. An entirely renovated house may as well be regarded as a new home. FHOG is not available if you are buying an already established home or renovating your existing property.

Since its inception, the rules around the first home buyers scheme have been repeatedly changed over time. Again, the eligibility criteria may differ in your state, so it is strongly advised that you confirm the requirements by contacting your state government and always consult your conveyancer or financial advisor.

Can the Fund from First Home Owner Grant be Used as a Deposit?

Yes. First Home Owner Grant was introduced to help you manage the cost of buying a home. Depending on the price of the home you are buying, it may not be enough to cover the full deposit required. Although the application process for the First Home Owner Grant takes only a couple of weeks, exactly when you get the grant depends on whether you are buying or building.

If you buy a home, you will get the FHOG on property settlement, i.e., when the legal work is complete and the keys are handed over to you. But it is different when you are building a new property. Typically, when you first drawdown your loan and the slab is laid, that’s when you will receive the First Home Owner Grant.

How can I Apply for the First Home Owner Grant?

Commonly, people apply for the First Home Owner Grant via their lender while simultaneously applying for the home loan. This is where Capkon mortgage brokers can help.

Another way is to apply directly to the state government body, which is usually the revenue office responsible for handling the First Home Owner Grant in your area.

You can find the latest updates on First home buyer schemes in your state from below:

The First Home Owner Grant can be significant financial support for you while buying your first home if you are eligible. Any help to take off some of the financial burdens of buying a home is worth taking. However, you should always take counsel from your conveyancer or mortgage broker and discern your situation before taking a financial plunge.

As a first home buyer, the home buying journey can be daunting for you. Keeping track and trying to comprehend each nuance can leave you overwhelmed. This doesn’t mean that you have to do it all on your own. Experienced Nepali mortgage brokers at Capkon can help you get into your dream home much sooner. Book an appointment at Capkon today!


Kiran Thapa

Seema Lama

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