First Home Owners Grant VIC

Each state and territory government, with the exception of the ACT, provides first-time homebuyers with a one-off payment they can use towards the purchase of their home, known as a First Home Owner Grant.

In this article we'll go through how Victoria's First Home Owner Grant works, as well as:

• How much you can get

• Eligibility criteria

• How to apply for the grant

• First home buyer stamp duty discounts

• Other schemes to help first home buyers into the market

What is the Victorian First Home Owner Grant?

Eligible first home buyers in Victoria can apply for the First Home Owner Grant when they're buying or building a new home valued at up to $750,000.

Those purchasing existing dwellings - those that have been lived in before - aren't eligible.

How much is the Victorian First Home Owner Grant?

Victoria's First Home Owner Grant provides eligible first home buyers with up to $10,000 of cash that they can use to buy or build a new home, or for another purpose such as covering transaction costs.

Am I eligible for the Victorian First Home Owner Grant?

To qualify for the grant, neither you nor your partner can have owned and occupied another residential property in the country. Though, you may still qualify for the grant if you or your spouse have owned a residential property but didn't live there.

You also must not have received any form of First Home Owner Grant from any other state or territory.

When applying, at least one of those purchasing a property must:

• Occupy the home as the principal place of residence for at least 12 months, commencing within 12 months of settlement or the completion of construction

• Be an Australian citizen, a permanent resident, or a New Zealand citizen who holds a permanent visa

What properties are eligible for the Victorian First Home Owner Grant?

The grant is only available for those purchasing new homes, which may be houses, townhouses, apartments, or units.

To be considered new, the property must not have been previously sold as a place of residence, occupied as a home, or used for the provision of short-term accommodation. In short, the first sale of the property must be to the person applying for the grant - in this case, you.

Similar to other state governments, Victoria also imposes a price cap for the grant. The price of the home being bought should not exceed $750,000. The same price cap applies to the cost of constructing a home.

How to apply for the Victorian First Home Owner Grant

There are two ways you can apply for the grant: Through your lender or directly to the state revenue office (SRO).

Applying through a lender

For the majority of applicants, their grant submissions are taken care of by their lenders.

This is ideal if you need the grant ahead of settlement, or on the first drawdown or progress payment if you're building.

When applying through your lender, you simply need to follow their instructions and provide the required documents and information.

See our main first home buyer loans page for more insights and tips.

The table below also features some of the lowest interest rates for owner occupier home loans on the market.

Applying directly to Victoria's SRO

If your lender isn't an approved agent or you're not borrowing through a lender, you'll need to apply directly to the revenue office.

You must send an application form downloaded from the Victoria FHOG site.

After filling out the form, send it and all the other supporting documents you need to the State Revenue Office by mail.

Required supporting documents include:

• A copy of the contract for sale

• A title search showing the applicant as owners

• A statement from the vendor stating the property has never been occupied since the completion of the transaction

• Final build cost statement from the builder

• Evidence of the total value of the property

Take note that you'll need to complete your transaction first before you can lodge your application.

When will you receive the grant?

The date the grant is paid will depend on your transaction type and how your application is lodged.

Transaction type	Applied through lender	Applied directly to SRO
Purchase of a new or off-the-plan home	The grant will be paid at the date of the settlement.	Your application will only be considered after settlement. Within 10 working days, your application will be reviewed. Once approved, the grant will be paid into your nominated electronic funds transfer (EFT) account.
Contract to build	The grant will be paid at the date of the first progressive payment.	Your application will be reviewed once a Certificate of Occupancy is issued. Your application will be reviewed within 10 working days. You will receive the grant through your nominated EFT account.
Owner builder	The grant will be paid on the receipt of the Certificate of Occupancy.	Your application will be considered once a Certificate of Occupancy is issued. Within 10 working days, your submission will be reviewed. You will receive the grant through your nominated EFT account.
Terms contract	Applications for purchases under a terms contract must be made directly to the State Revenue Office.	Your application will only be considered when you have provided evidence of possession. As with other transaction types, your application will be reviewed within 10 days. After which, you will be able to receive the grant through your nominated EFT account.

Can first home buyers get stamp duty discounts in Victoria?

Stamp duty is an often-forgotten major cost of buying a home, but there are concessions available for first home buyers in Victoria.

Victorian stamp duty concessions for first home buyers

If you bought your first home in Victoria, you may be eligible for an exemption or concession from stamp duty. This concession is available to eligible first home buyers in addition to the First Home Owner Grant.

To be eligible for an exemption, the property you're purchasing must be valued at less than $600,000.

However, concessions will apply for properties valued at between $600,001 and $750,000.

A stamp duty exemption or concession is also available for the purchase of vacant land.

Off-the-plan concession

You may also receive a concession as a first home owner buying an off-the-plan land and building package or a refurbished lot.

In simple terms, the concession reduces the value of the property by deducting the cost of construction or refurbishment on or after the contract date, effectively reducing the amount of duty to be paid. After applying the off-the-plan concession, the dutiable value cannot exceed $750,000.

The date of the contract is important. As of 1 July 2017, the off-the-plan concession is only available to those qualifying for the principal place of residence concession or the first home buyer stamp duty exemption/concession.

You can visit the Victorian State Revenue Office website to learn more about the support programs available for first home buyers.

What other schemes and grants can Victorian first home buyers use?

First home buyers in Victoria have a few more incentives and schemes at their fingertips to help them get a leg up onto the property ladder faster.

They could even combine one or more of these schemes with the First Home Owner Grant and stamp duty concessions, potentially saving them thousands.

The Home Guarantee Scheme

The Home Guarantee Scheme is a federal government initiative allowing first home buyers to purchase a home with as little as a 5% deposit while avoiding lenders mortgage insurance (LMI).

It sees the government effectively guaranteeing the remaining deposit amount, up to 15%.

The scheme is only available through participating lenders, and is subject to price caps, income thresholds, and availability.

The First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSSS) allows first home buyers to use their superfund to save a deposit.

Under the scheme, a first home buyer can salary sacrifice their pre-tax wages into their super and later withdraw as much $15,000 of contributions made in any given financial year, up to a maximum of $50,000, to put towards purchasing a home.

That could see them taking advantage of a discounted tax rate (15%) and the funds deposited will earn a deemed rate of return (7.36% as at the July to September 2024 quarter).

Just to be clear, you can't withdraw employer or spouse contributions, only those you make yourself.

Other First Home Owner Grants

• NSW First Home Buyer Grant

• Tasmanian First Home Buyer Grant

• Queensland First Home Buyer Grant

• South Australian First Home Buyer Grant

• Western Australian First Home Buyer Grant

• State-by-state guide to First Home Owner Grants

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