Do both partners get the first home buyers grant?

Buying your first home is a big step, especially for couples in Melbourne where property prices can feel out of reach. The First Home Owner Grant (FHOG) is a government scheme designed to give first time buyers a helping hand. But if you're buying with your partner, you might be asking: do both of you get the grant separately, or is it just one payment for the property? Let's dive into this question and break it down step by step so you know exactly what to expect.

What Is the First Home Owner Grant?

The First Home Owner Grant is a one time payment from the Australian government to help first time homebuyers get a foot on the property ladder. It started back in 2000 to ease the sting of the GST on homeownership costs. In Victoria, where Melbourne sits, the grant is currently $10,000 for eligible buyers who purchase a new home worth $750,000 or less. This could be a brand new house, an off the plan unit, or a heavily renovated property that hasn't been lived in before.

The catch and the key to answering our question is how the grant is paid. It's not about how many people are buying; it's about the property itself. So, do both partners get the first home buyers grant? No, it's one grant per property, not per person.

One Grant Per Property: How It Works for Couples

Let's make this crystal clear. The FHOG is tied to the property, not the number of buyers. If you and your partner buy a new home in Melbourne for, say, $700,000, you'll get one $10,000 grant between you. If you were buying that same home solo, you'd still get $10,000. The grant doesn't double just because there are two of you.

Think of it like this: the government is helping you buy the home, not rewarding each of you individually. So, whether it's you alone or you and your partner together, it's still one $10,000 payment for that eligible property.

Eligibility: What Couples Need to Qualify

Now, just because you're a couple doesn't mean you automatically get the grant. Both partners have to tick certain boxes for your application to succeed in Victoria. Here's what you need to meet:

Neither of you has ever received the FHOG anywhere in Australia.
Neither of you owned a home or residential property in Australia before 1 July 2000.
Neither of you lived in a home you owned for at least six months on or after 1 July 2000.
At least one of you is an Australian citizen or permanent resident.
At least one of you is 18 or older.
At least one of you will live in the home as your main residence for 12 months, starting within 12 months of buying or building it.

Here's the kicker: even if only one of you is on the property title, the government looks at both of your histories. If your partner owned a flat years ago or got the grant before you met, it could rule you out as a couple. The idea is to make sure the grant goes to true first timers who haven't built wealth through property yet.

Special Situations Couples Might Face

Let's look at some common scenarios Melbourne couples might encounter.

De Facto

If you're not married but living together as a couple say, for two years or you've got a kid together you're considered de facto in Victoria. The same rules apply as for married couples. Both of your pasts matter. If one of you has used the grant or owned a home, you're likely out of luck applying together.

Married Couples

For those who've tied the knot, it's simple but strict. Both spouses' property histories are checked. If either of you has owned a home or nabbed the FHOG before, the grant's off the table when you apply as a couple.

How Couples Apply for the Grant

Applying for the FHOG in Victoria isn't too complicated. You've got two options: go through your bank or lender (most couples do this because it syncs with your loan), or apply directly with the State Revenue Office. If you use your lender, the $10,000 usually hits at settlement, which is handy for covering costs.

You'll need to hand over some paperwork for both of you, even if only one name's on the title:

Proof of identity (passports, birth certificates).
Proof one of you is an Australian resident.
The contract for the property.
Evidence you're a couple (marriage certificate or a statutory declaration for de facto).
Your address history.
Statements about past property ownership or grants.

Get it all right and be honest making up details can mean repaying the grant plus penalties.

Watch Out for These Slip Ups

Couples sometimes trip over simple stuff when applying. Here's what to avoid:

Hiding past property ownership (even if it was ages ago).
Misjudging the residency rule (you've got to live there 12 months).
Missing application deadlines.
Forgetting documents for a partner.

Steer clear of these, and you're more likely to sail through.

Extra Perks for Melbourne First Home Buyers

The FHOG isn't the only help out there. Victoria offers more goodies for first timers:

Stamp Duty Relief: Buy a place worth $600,000 or less, and you might skip stamp duty entirely saving up to $31,070. Between $600,001 and $750,000, you get a discount.
First Home Loan Deposit Scheme: This lets you buy with just a 5% deposit and no Lenders Mortgage Insurance. Melbourne's price cap is $800,000, but spots are limited.
First Home Super Saver Scheme: Save for your deposit in your super fund and withdraw it later, possibly saving on tax.

Mix these with the FHOG, and you've got a solid boost toward that Melbourne home.

Making the Most of Your Grant

Got the grant? Great! Now, plan how to use it. Most couples:

Beef up their deposit to borrow less.
Cover settlement extras like legal fees or moving costs.
Tackle early renovations.

Talk it over with your partner beforehand so you're both happy with the plan. Since the grant usually comes at settlement (via your lender), have your deposit ready upfront and speak to a conveyancer.

Wrapping It Up

So, do both partners get the first home buyers grant? Nope. It's one $10,000 grant per property in Victoria, not per person. If you're a Melbourne couple, both your histories count toward eligibility. If one of you's owned a home or used the grant before, you're usually out when applying together. But with the FHOG, stamp duty breaks, and other schemes, there's still plenty of help to get you into your first home.

Feeling a bit lost in the details? That's where pros come in. Reach out to our Pearson Chambers Conveyancing they're Melbourne experts who can guide you through the process and make sure you grab every benefit you're entitled to. Give them a shout for a chat and snag their free Section 32 contract review while you're at it.

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au