Are You Eligible for the First Home Owners Grant?

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Key Takeaway Table

Key Point	Description
Basic Eligibility Criteria	All applicants must be natural persons aged 18 and above. To be considered for the grant, at least one name on the application must be an Australian citizen or a foreign national with permanent resident status. Applicants must be first-time home buyers with no previous residential properties. Most importantly, applicants must not have successfully received the FHOG before.
Eligible Properties	Properties eligible for FHOG approval include new homes, new builds, existing homes with significant structural renovations, off-the-plan homes with no previous occupants, and in some states, relocated homes. Property values must stay within your state's price cap.
Application Timeframe	Applications must be submitted within your state's required timeframes. Usually, you must lodge your application directly or through an approved agent within 12 months of signing the contract of sale or construction.
Occupancy Requirement	You are required to reside in your property within 12 months of settlement or completion. You must consider the home as your permanent residence, and you must live there continuously for at least six months or more, depending on your state.

The First Home Owners Grant (FHOG) is a nationwide act aimed to help with the purchase or construction of first homes. However, not everyone is qualified to receive this grant. Here’s a comprehensive guide to help you understand what types of applicants and properties get approved.

Basic Eligibility Criteria

The FHOG is available to applicants who fulfil the following personal criteria:

All applicants must be 18 years of age or over at the time of application. Some states allow those below 18 to apply for an exemption, so check your state's revenue website if you don't meet the age requirement.
All applicants must be natural persons, not a company or a trust. However, some states may allow applications made by a trustee on behalf of a person with a legal disability.
At least one applicant must be an Australian citizen or a permanent resident. For instance, if you and your spouse are applying for FHOG, at least one of you must meet this requirement.
All applicants must be first-time home buyers who have not previously owned a residential property in Australia either before or after July 1, 2000.
The applicant and their spouse or partner must not have received FHOG before. If an applicant or their spouse has received FHOG before but has returned the grant due to an error in the application, some states may allow them to reapply. However, it is still up to the state government if they will approve again.

Eligible Properties

The property criteria for the FHOG can vary by state. However, there are common criteria that generally apply. Here’s an overview of typical property criteria for the FHOG:

New Homes

The property must be a new home, which can include:

A newly constructed home that has never been lived in before
A home that is in the process of being built by either a contractor or an owner-builder
A home bought off the plan that has not been previously occupied. A substantially renovated home, where most of the structure has been replaced or renovated. The specifics of what qualifies as a "substantial renovation" can vary by state
In some states, relocated homes that have not been lived in since being moved may also qualify

Property Value Caps Per State

Each state sets limits on the value of the property for FHOG applications. See the value caps for each state below:

New South Wales (NSW): $600,000 (new home purchase), $750,000 (home building contract or owner-builder)
Northern Territory (NT): No value cap
Queensland (QLD): $750,000
South Australia (SA): $575,000 (if the contract was entered into between 17 September 2010 and 14 June 2023), $650,000 (if the contract was entered into on or after 15 June 2024)
Tasmania (TAS): No Value Cap
Victoria (VIC): $750,000
Western Australia (WA): $750,000 (south of the 26th parallel of South latitude), $1,000,000 (north of the 26th parallel of South latitude)

Property Types

The FHOG typically covers various types of homes, including houses, townhouses, duplexes, apartments, and units, as long as they meet the other eligibility criteria.

Application Timeframe

Applicants must submit their applications in the correct timeframe, otherwise, the application may be rejected. Deadlines for applications may vary per state, but in general, applications must be made within 12 months after the date of contract signing, whether your home is a new build or a significantly renovated home.

Occupancy Requirement

All applicants must occupy the property as their principal place of residence for a continuous period of at least 6 months. They must reside in the home within 12 months of settlement or construction completion. This is an important requirement that state governments pay close attention to. The purpose of the grant is to encourage home ownership, so they want the funds to go into permanent housing and not elsewhere. Here are some situations that are not allowed under FHOG requirements:

If you cannot fulfil the residency requirement, you must write to inform your state commissioner before the 12-month period ends. Depending on your reason and the commissioner’s discretion, you may be allowed to stay in the property for a period shorter than 6 months. You may also be allowed to commence living in the property after the 12-month period. However, you must be able to demonstrate that your reason is something beyond your control.

Reach Out to Loan Experts

Are you looking to purchase or build your first home? We can help you find the best lenders included in your state’s list of approved agents. We’ll let you know your options so you can get the most favourable terms and maximum savings. Reach out today to learn more.