Key Takeaway Table
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What the FHOG Covers
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The First Home Owner Grant (FHOG) covers the purchase of a new home that has not been occupied before. Homes can be a standard house, a duplex, an apartment unit, or other eligible home types. The FHOG may also cover the purchase of a substantially renovated home. The grant may also help with financing a new build, whether through a contractor or as an owner-builder.
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What the FHOG Does Not Cover
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The FHOG does not cover the purchase of an existing home. It also does not cover the purchase of a new or existing home meant for investment purposes. If you get approved for the grant, you may not lease the property within the first 12 months; otherwise, you may face significant penalties.
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Grant Amounts
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The grant amounts vary from state to state, so you must check your local state revenue office website to understand your entitlement. Generally, the grants range anywhere from $10,000 to $35,000. Some states will also offer stamp duty concessions or exemptions on top of the grant.
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The First Home Owner Grant (FHOG) is designed to assist eligible first-time homebuyers with the costs of purchasing or building a new home. Here’s a short guide that tells you what types of properties the FHOG covers and how much you can get if approved.
What the FHOG Covers
The scope of what the FHOG covers can vary slightly between different states, but generally, the grant covers different types of residences, including homes, duplexes, and apartments, provided that they fit within the criteria. Approved residences, regardless of type, must be:
A New Home
The FHOG can be used towards the purchase price of a brand-new home that has not been previously occupied or sold as a place of residence. This includes homes purchased off the plan or newly constructed homes with no prior occupants.
A Substantially Renovated Home
Some states allow the FHOG to be used for homes that have undergone substantial renovations, where the renovations are deemed to have created a "new" home.
A New Build
For those looking to construct their own home, the grant can contribute to the construction costs. This includes homes built by a separate contractor or an owner-builder.
A Relocated Home
In certain conditions, the purchase and relocation of a new home to a different site may qualify for the grant.
What FHOG Does Not Cover
Purchase of Established Homes
The grant typically does not apply to the purchase of established homes that have been previously occupied or sold.
Investment Properties
The FHOG is aimed at homebuyers who intend to occupy the purchased property as their principal place of residence. If you intend to use your purchased home as an investment property, your application will be denied. If you use the property for leasing after you get approved, you may face penalties or other legal repercussions.
Limitations and Conditions
The FHOG is only available to certain types of buyers, and there are limitations to the price of the property being purchased. Here are some limitations and conditions related to the grant:
First-Time Buyer Status
The grant is generally only available to first-time homebuyers who have not previously owned a residential property in Australia.
Value Caps
Most states and territories impose a maximum value limit on the property for which the FHOG can be claimed. The value cap varies across states and is meant to ensure the grant supports the purchase of modest homes. Here’s a list of the value caps of each state:
- New South Wales (NSW) – $600,000 – $750,000 (home building contract or owner-builder)
- Northern Territory (NT) – No value cap
- Queensland (QLD) – $750,000
- South Australia (SA) – $575,000 (the contract was entered into between 17 September 2010 and 14 June 2023), $650,000 (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)
Occupancy Requirements
Recipients are usually required to move into the home within 12 months of settlement and reside there continuously for at least six months. Failure to comply may result in the government demanding back the exact value of the grant plus administrative charges.
Grant Amounts
The amount of the FHOG varies between states and territories, reflecting differences in the property market and living costs. The grant amounts, value caps, and requirements may also be subject to change at any time, so it’s crucial to check your state government’s website regularly if you plan to apply for the grant. Here’s how much you can get should your application be approved:
- New South Wales (NSW): Up to $10,000
- Northern Territory (NT): $10,000
- Queensland (QLD): $15,000 to $30,000
- South Australia (SA): $15,000
- Tasmania (TAS): $20,000 to $30,000
- Victoria (VIC): $10,000
- Western Australia (WA): $10,000
Some states will also offer stamp duty concessions or exemptions together with the FHOG, which can help eligible applicants save thousands.
Are You Looking to Purchase a New Home?
If you’re in the process of looking for home loans and grants, our loan experts can help you through the process. We can guide you to the best lenders approved for FHOG applications in your area. Contact us now to start your home ownership journey.
