What Is the First Home Owner (FHOG) Grant? (Ep1 of the New Home Buyer’s mini series) 🐾

Buying your first home can feel overwhelming — prices, deposits, stamp duty, loans… it adds up fast.

The Short Answer

The First Home Owner Grant (FHOG) is a $10,000 cash grant from the Victorian Government to help first home buyers — but only if you buy or build a new home.

That’s the headline.

What Counts as a “New” Home?

To be eligible, the property must be:

• A brand new home (never lived in), or

• A house-and-land package, or

• A new build you’re constructing

Buying an established home?
❌ No FHOG.

Who Can Get It?

You’ll generally qualify if:

• You’re 18 or older

• You’re an Australian citizen or permanent resident

• You’ve never owned property before

• You’ll live in the home (not rent it out)

If you’re buying with someone else, both buyers must be eligible.

Price Cap (Very Important)

In Victoria, the property must be worth $750,000 or less.

That includes:

• House and land, or

• The full build contract

Over that amount = no grant.

How Is the Grant Paid?

In most cases:

• The grant is paid at settlement, or

• Used to reduce how much cash you need upfront

The lender or I usually handles the application as part of the loan process.

FHOG vs Stamp Duty (Not the Same Thing)

Quick clarification:

• FHOG = cash grant (new homes only)

• First home buyer duty exemption/concession = stamp duty savings (different rules) (We’ll cover this in episode 3)

You can sometimes qualify for both, depending on the property and price.

Is It Worth It?

For many first home buyers — yes.

That $10,000 can help with:

• Your deposit

• Build costs

• LMI

• Or keeping a cash buffer

But it shouldn’t be the only reason you buy a property.

Final Whistle 🐕

If you’re a first home buyer in Victoria and want to know:

• If you qualify

• What you can realistically afford

• Or whether building makes sense

I’m always happy to have a no-pressure chat.

— Iain & Dave
Mortgage Muster