The Victorian FHOG: Your guide to the $10,000 grant and how to get it

Key takeaways:

• The Victorian First Home Owner Grant provides a $10,000 payment to eligible applicants purchasing or building a new home valued at up to $750,000, provided the property has never been previously sold or occupied.
• To qualify, at least one applicant must be an Australian citizen or permanent resident and must commit to living in the property as their principal place of residence for at least twelve continuous months.
• The grant is often paired with other incentives, such as stamp duty exemptions for homes under $600,000 and federal deposit schemes, to significantly reduce the upfront costs and deposit requirements for first-time buyers.

The First Home Owner Grant (FHOG) offers eligible Victorians a $10,000 payment towards buying or building a new home. It’s designed to reduce upfront costs for first home buyers and can make a real difference when combined with other government incentives.

If you’re wondering how to make the most of the first home buyers grant in Victoria, understanding the rules and combining it with other schemes can maximise your benefit.

Understanding the grant

The Victorian FHOG applies to new homes valued at or less than the current $750,000 VIC FHOG property cap. The property can be a house, townhouse, apartment or unit, provided it has never been sold or occupied. A substantially renovated home or one built to replace a demolished property may also qualify as FHOG Victoria new homes.

The $10,000 payment now applies statewide, replacing the previous $20,000 regional grant that ended in mid-2021. The change brought regional and metropolitan assistance into line, creating a single, consistent scheme for first home buyers across Victoria.

Most applicants apply through their lender, who acts as an approved agent and ensures the grant is processed correctly – either at settlement for a purchase or with the first progress payment for a build.

For those choosing to build, understanding this payment structure is essential. It is a good idea to read our full guide on how construction loans work, including staged progress payments.

Who is eligible

To qualify for the FHOG, applicants must meet several key conditions and confirm their VIC FHOG eligibility:

• The home must be new and worth no more than $750,000, which is the Victorian FHOG maximum amount.
• All applicants must be natural persons aged 18 or over.
• At least one applicant must be an Australian citizen or permanent resident.
• Applicants (and their partners) must not have previously owned or lived in a residential property in Australia after 1 July 2000.
• At least one applicant must occupy the home for 12 continuous months within 12 months of settlement or construction.

There are limited exceptions, including for members of the Australian Defence Force, who are exempt from the 12-month residency requirement.

Making the most of the FHOG

The FHOG delivers greater value when combined with other Victorian and federal schemes. Together, these incentives can reduce both purchase costs and deposit requirements.

Stamp duty exemption or concession:

Eligible first home buyers can claim a full exemption from land transfer (stamp) duty for homes valued up to $600,000, or a concession for homes between $600,001 and $750,000. This can save buyers more than $31,000.

For example, purchasing a $585,000 off-the-plan apartment could mean paying no duty and receiving the full $10,000 FHOG – a total benefit of over $40,000.

Federal deposit schemes:

The federal government’s 5% deposit scheme allows eligible buyers to purchase with a 5% deposit without paying lender’s mortgage insurance. Pairing one of these schemes with the Victorian FHOG can help buyers secure finance sooner.

Victorian Homebuyer Fund:

This shared equity scheme can contribute up to 25% of the property price (or 30% for Aboriginal and Torres Strait Islander buyers). It’s available to buyers with a 5% deposit, reducing loan size and repayments.

This means that a couple building a $720,000 townhouse in Cranbourne could receive the $10,000 FHOG, save around $10,000 in duty (under the concession), and contribute just 5% under the Homebuyer Fund. Combined, these benefits could reduce upfront costs by tens of thousands of dollars.

How to apply

The Victorian FHOG is paid through an approved lender, and Loan Market Connect works closely with these lenders to make the process seamless. Your broker will confirm VIC FHOG eligibility, collect the necessary documents and coordinate with the lender to ensure the grant is applied correctly. 

It’s also possible to apply directly to the State Revenue Office (SRO) within 12 months of settlement or construction, but most first home buyers choose to apply through their lender for a faster, simpler process. 

To confirm your eligibility and explore how to make the most of the first home buyers grant in Victoria, get in touch with your local Loan Market Connect broker in Carnegie, Ferntree Gully, Croydon, Forest Hill, Rosebud or Mansfield.

Frequently asked questions

Can I get the FHOG for an established home?

No. The FHOG only applies to new or substantially renovated properties that have never been sold or occupied.

What is the maximum property price for eligibility?

The total value of the home, including land, must not exceed $750,000.

Can I apply for both the FHOG and stamp duty exemption?

Yes. Many first home buyers combine both benefits if their property value is under $600,000. Between $600,001 and $750,000, a reduced duty concession applies.

When will I receive the grant?

If you apply through an approved lender, payment is made at settlement for a purchase or with the first progress payment for a build.

Do I need to live in the property?

Yes. At least one applicant must occupy the home for 12 months within 12 months of settlement or completion, unless exempt (for example, active Defence Force members).