In short: Victoria's First Home Owner Grant (FHOG) is a $10,000 payment for first home buyers who buy or build a new home valued at $750,000 or less. The home must never have been lived in, and you must move in within 12 months of settlement and live there for at least 12 continuous months. Established homes do not qualify. You usually apply through your lender.
The grant is one of three state-and-federal supports that can stack for northern-Melbourne first home buyers building in Mickleham, Kalkallo, Donnybrook or Sunbury: the $10,000 grant, the stamp duty exemption on the land, and the First Home Guarantee removing LMI. This guide sets out exactly who qualifies, what "new home" means, how and when the money is paid, and the traps that cause applications to be rejected or clawed back.
What the grant is and who pays it
The FHOG is a Victorian state government grant administered by the State Revenue Office (SRO). It is a one-off, non-taxable payment of $10,000. It is not a loan and does not have to be repaid provided you meet the residence requirement.
The grant exists to encourage new housing supply, which is why it applies only to homes that have never been occupied. Buying an established house in Craigieburn does not attract the grant, even if you are a first home buyer. Building on a block in Donnybrook, buying a brand-new townhouse in Wollert, or purchasing an off-the-plan apartment does.
Eligibility checklist
Every applicant, and any spouse or partner even if not on the title, must meet the personal criteria.
| Requirement | Detail |
|---|---|
| Age | At least 18 at settlement or completion |
| Residency | At least one applicant must be an Australian citizen or permanent resident (New Zealand citizens on a special category visa qualify) |
| First home | You and your spouse or partner have never received a FHOG in any Australian state or territory |
| Prior ownership | You and your spouse or partner have not owned a home in Australia before 1 July 2000, and have not owned and lived in a home for six continuous months or more since 1 July 2000 |
| Property type | New home: never previously sold as a place of residence or occupied, or substantially renovated |
| Value | Total value (land plus build, or contract price) $750,000 or less |
| Residence | Move in within 12 months of settlement or build completion, and live there for 12 continuous months |
| Purchase | Bought as a natural person, not through a company or trust |
The prior-ownership test is more forgiving than many expect. If you inherited a share of a family property but never lived in it, or owned an investment unit you never occupied, you may still qualify. The SRO decides these cases individually, so raise it early.
What counts as a new home
| Property | Eligible? |
|---|---|
| House-and-land package, you sign a build contract | Yes, value is land plus build contract |
| Completed spec home from a builder, never occupied | Yes |
| Off-the-plan apartment or townhouse | Yes |
| Knock-down rebuild on land you already own | Generally yes, if the new home is the first occupied on that title since rebuilding |
| Substantially renovated home | Yes, if the renovation is "substantial" as defined by the SRO |
| Established home, previously lived in | No |
| Display home previously used by the builder as an office | Usually no, because it has been occupied |
Full definitions are on the SRO website, but the practical test is simple: if anyone has lived in it, it is not new.
How much you get and the value cap
The grant is a flat $10,000 anywhere in Victoria. There is no larger regional amount in 2026, though there has been in some past years.
The $750,000 cap is the total value of the home. For a house-and-land package it is the land price plus the building contract, including any variations. For an off-the-plan purchase it is the contract price. For a knock-down rebuild it is the value of the land plus the build cost.
| Scenario | Land | Build or contract | Total | Eligible for grant? |
|---|---|---|---|---|
| Kalkallo house-and-land | $310,000 | $320,000 | $630,000 | Yes |
| Wollert new townhouse | – | $595,000 | $595,000 | Yes |
| Sunbury house-and-land with upgrades | $340,000 | $415,000 | $755,000 | No, over cap |
| Mickleham knock-down rebuild | $520,000 (land value) | $260,000 | $780,000 | No, over cap |
Builders in the north know the cap well and often package to sit just under $750,000. Be careful that site costs, upgrades and variations do not push the total over. A $5,000 kitchen upgrade that lifts a $748,000 package to $753,000 costs you the entire $10,000 grant.
When the grant is paid
Timing depends on how you buy.
| Purchase type | When the $10,000 is paid (via an approved agent lender) |
|---|---|
| New home already built | At settlement |
| House-and-land, build contract | At the first progress payment, usually the slab or foundation stage |
| Off-the-plan | At settlement |
| Owner-builder | After the certificate of occupancy is issued |
If you apply directly to the SRO rather than through your lender, the grant is paid after settlement or completion, which means it cannot help with your deposit. That is why almost everyone applies through their lender.
How to apply
Most lenders are approved agents of the SRO. You complete the FHOG application form as part of your loan application, the lender lodges it, and the grant is paid to the lender at the relevant stage and applied to your purchase.
You will need:
- Completed FHOG application, signed by all applicants
- Identity documents for each applicant (passport, drivers licence, Medicare card, birth certificate)
- Evidence of citizenship or permanent residency
- Signed contract of sale and, for a build, the signed building contract
- For a build, evidence the builder is registered
- Marriage certificate or relationship declaration if applicable
If you buy without a loan, or your lender is not an approved agent, you lodge with the SRO directly. Turnaround is typically a few weeks after settlement.
Worked example: Donnybrook house-and-land at $640,000
A couple, first home buyers, sign a land contract for $315,000 in Donnybrook and a build contract for $325,000, total $640,000.
- Grant: $10,000, paid at the slab stage progress payment
- Stamp duty: assessed on the land only ($315,000), and nil because they are first home buyers under $600,000
- LMI: nil under the First Home Guarantee
- 5% deposit needed: $32,000
- Cash actually required at land settlement: deposit less the grant and a modest amount for conveyancing, roughly $25,000 to $27,000
Compare that to buying a $640,000 established home in nearby Craigieburn: no grant, and stamp duty of approximately $9,085 under the first home buyer sliding concession. The new build is more than $19,000 cheaper on upfront cash for a similar price. Model your own situation on the upfront costs calculator.
Stacking the grant with other support
| Support | Combines with FHOG? | Detail |
|---|---|---|
| First Home Guarantee (federal, 5% deposit, no LMI) | Yes | Price cap $950,000 Melbourne |
| Victoria stamp duty exemption/concession | Yes | Nil duty to $600,000, concession to $750,000 |
| Help to Buy shared equity (federal) | Yes | Government contributes up to 40% on a new home |
The grant does not reduce your duty, and the duty exemption does not affect your grant. They are assessed separately. The stamp duty guide for first home buyers explains the duty side; the First Home Guarantee guide covers the deposit side.
Using the grant as part of your deposit
Most lenders offering first home buyer loans will count the grant as part of your contribution to the purchase, which reduces the cash you need. It does not usually count toward the genuine savings requirement, which is typically 5% of the price held for three months. So a $640,000 build still generally needs about $32,000 of your own savings even though the grant pays $10,000 of the deposit at the slab stage. Some lenders take a more flexible view; that is a policy question we sort out before you apply. See genuine savings explained for the detail.
The residence requirement and clawback
You must occupy the home as your principal place of residence for 12 continuous months, starting within 12 months of settlement (or completion of the build). If you do not, you must notify the SRO within 14 days and repay the grant. The SRO also charges penalty tax on grants that are wrongly claimed or not repaid when the requirement is missed.
Genuine hardship exemptions exist, for example a job relocation interstate or a serious illness. Apply to the SRO in writing before you move out rather than after.
Renting the property out during the first 12 months, even a single room on a short-stay platform while you live elsewhere, is the most common trigger for a clawback.
Common mistakes
Assuming an established home qualifies. The Victorian grant is for new homes only. There is no grant for buying an existing house in Roxburgh Park or Greenvale.
Going over $750,000 with variations. The value includes every build variation. Ask the builder to confirm the total contract value before signing upgrade paperwork.
A spouse who previously owned and lived in a home. Your partner's history counts even if they are not on the loan or the title.
Applying directly to the SRO when you needed the money at settlement. Direct applications pay after settlement. Apply through your lender if the grant forms part of your deposit.
Buying in a company or trust. Only natural persons qualify.
Moving in late. The 12-month window to move in starts at settlement or completion. Buyers who leave the home vacant while finishing a lease can accidentally miss it.
Forgetting the display home rule. A display home that has been used as a sales office is treated as occupied and is not new.
Frequently asked questions
Is the First Home Owner Grant paid at settlement?
For a completed new home or off-the-plan purchase, yes, if you apply through your lender as an approved agent. For a house-and-land package with a building contract, the grant is paid at the first progress payment, usually the slab or foundation stage. If you apply directly to the SRO, the grant is paid after settlement or completion, so it cannot form part of your deposit.
Can I get the First Home Owner Grant on an established house in Victoria?
No. Victoria's grant applies only to new homes: house-and-land packages, newly built homes never occupied, off-the-plan purchases and substantially renovated homes. First home buyers of established houses can still get the stamp duty exemption up to $600,000 and the concession to $750,000, and can use the First Home Guarantee to buy with a 5% deposit and no LMI.
Is the $10,000 grant taxable?
No. The First Home Owner Grant is not assessable income and you do not declare it on your tax return. It also does not affect Centrelink payments as income, although it may briefly count as an asset until it is applied to the purchase. Confirm your own situation with the ATO or a registered tax agent.
Can I use the grant as my deposit?
Partly. Lenders generally count the grant toward the purchase, reducing the cash you must find, but most still want to see about 5% of the price in your own genuine savings. On a $640,000 build that means roughly $32,000 saved, with the $10,000 grant paid at slab stage on top. Some lenders will accept less; a broker can tell you which.
What if I have owned an investment property before?
You may still qualify. The test is whether you have owned and lived in a home for six continuous months or more since 1 July 2000, or owned any residential property before that date. If you owned an investment property you never occupied, the SRO may still approve you. Disclose it in full and let the SRO rule on it rather than guessing.
Do both partners need to be first home buyers?
Yes. If you are married or in a de facto relationship, your partner must also meet the criteria, even if they are not going on the loan or the title. If your partner has previously received a grant or owned and lived in a home, neither of you can claim the grant for this purchase.
Talk to GNT Finance
Our office is in Mickleham, in the middle of the estates where most Victorian grants are paid. Gorakh Timilsina will confirm your eligibility, lodge the grant with your loan so it is paid at slab stage, and stack it with the stamp duty exemption and the First Home Guarantee, at no cost to you for our home-loan service in most cases.
Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.