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Buying your first place in Melbourne is a heady mix of excitement and spreadsheets. The First Home Owner Grant (FHOG) can take a bit of pressure off the budget, but only if you tick the right boxes. Here's a friendly guide that keeps the jargon to a minimum and the rules straight.
First Home Owner Grant Victoria: The Essential Facts
The grant is $10,000 for eligible buyers of a new home in Victoria. Established homes do not qualify.
Your contract price or build cost must not exceed $750,000. For off the plan, the cap is tested against the contract price.
You must be a natural person, 18 or older, and at least one applicant must be an Australian citizen or permanent resident (eligible New Zealand citizens on a special category visa count) at the relevant date.
Live in the home for at least 12 months, starting within 12 months of settlement or completion. Certain Australian Defence Force members are exempt.
You, and your spouse or partner, must not have: received an FHOG anywhere in Australia, owned residential property before 1 July 2000, or lived in a home you owned on or after 1 July 2000 for a continuous 6 months.
You can apply through your lender (most common) or directly to the State Revenue Office (SRO). If you need the funds for settlement or your first build progress payment, you must apply through an approved agent (usually your bank).
That's the skeleton. Now let's add the flesh.
What Counts as 'New' in Victoria?
'New' is broader than it sounds. In Victoria, a new home can be a house, townhouse, apartment or unit that hasn't been sold or occupied as a residence before, and hasn't been used for short stay accommodation. It also covers substantially renovated homes and homes built to replace demolished premises. The key is that you're the first to use it as a home after the qualifying works.
Two Common Melbourne Scenarios
Brand new apartment in the CBD or an inner north suburb: off the plan or completed, never lived in, under $750,000, you're likely inside the FHOG rules.
A weatherboard in Preston that's been fully rebuilt behind a retained façade: if it qualifies as a substantial renovation and hasn't been occupied since completion, it can still be 'new' for FHOG purposes.
How the $750,000 Cap Works
For purchases (including off the plan), the cap is measured against the contract price. For builds (contract to build) and owner builder projects, it's the total construction cost. Either way, the number to watch is $750,000. If you tip over that, the grant is out.
A quick example: you buy an off the plan apartment in Brunswick for $720,000. The contract price is your test amount, so you're under the cap and still in the game.
FHOG Eligibility Requirements
Who's Eligible to Apply
Everyone who will have their name on title needs to be listed as an applicant. If you have a spouse or domestic partner, you must include their details, even if they aren't going on title. Their past property history counts towards your eligibility. Applicants must be natural persons (no companies or trusts) and at least 18 at settlement or completion.
Citizenship and Residency
At least one applicant must be an Australian citizen or permanent resident at the relevant date: settlement if you're buying, or when the new build is ready for occupation if you're building. Eligible New Zealand citizens on a special category visa also qualify, but they must be physically in Australia at settlement.
Previous Ownership Rules
You won't be eligible if you or your spouse or partner have:
- Received an FHOG anywhere in Australia
- Owned a home or other residential property in Australia before 1 July 2000
- Lived in a home you owned or part owned in Australia on or after 1 July 2000 for a continuous period of at least six months
There are special cases. If, for example, you bought an investment property after 1 July 2000 and never lived in it, you may still be eligible. Victim survivors of family violence may also access first home buyer relief in certain circumstances.
The Residence Requirement
Plan to move in within 12 months of settlement or completion and live there for at least 12 continuous months. Keep bills, electoral enrolment, and other proof handy, because the SRO can ask for evidence. If you cannot meet the requirement, you must notify the SRO within 14 days and you may need to repay the grant. Current Australian Defence Force members have a targeted exemption, subject to conditions.
Tip for Melbourne buyers: if you're timing your move around the opening of a new train station, school term, or builder delays, give yourself a buffer. Twelve months comes around fast once settlement day is done.
How to Apply for FHOG: Application Process
Most first timers apply through their lender, who acts as an approved agent. This is the smoothest route, especially if you want the grant released at settlement (for a purchase) or for your first progressive payment on a build. If you aren't applying through an approved agent, you can lodge directly with the SRO after the transaction completes. Either way, lodge within 12 months of settlement or completion.
Required Documentation
Expect to provide:
- Proof of identity for each applicant and their spouse or partner (three documents across specific categories)
- Property documents such as the contract of sale, building contract and certificate of occupancy
- Owner builders may be asked to show building costs that total at least the value of the grant, excluding labour
Once approved, the SRO pays the grant into your nominated account. They review typical applications in around 10 working days, and they do check eligibility carefully. Providing false or misleading information is an offence and can lead to penalties and interest in addition to repaying the grant.
FHOG and Stamp Duty: How They Fit Together
FHOG is cash toward a new home. Separately, Victoria offers first home buyer land transfer (stamp) duty savings on new or established homes:
- No duty if the dutiable value is up to $600,000
- Discounted duty from $600,001 to $750,000
You must use the property as your principal place of residence and meet similar eligibility rules to FHOG.
If you're buying off the plan, your dutiable value may be reduced by the temporary off the plan concession, which Victoria has extended to 20 October 2026. This can lower the duty bill on eligible apartments and townhouses. It is separate from FHOG, and the criteria differ, but the two can work together.
Practical Melbourne example: a $690,000 off the plan unit in Footscray could potentially unlock both the FHOG (new home under $750,000) and a reduced duty bill thanks to the off the plan concession, depending on the construction stage when you sign and other factors. Always run the numbers using the SRO calculator and current rules.
Common FHOG Pitfalls and How to Avoid Them
1. Buying an 'Almost New' Home
If the place has ever been occupied as a residence, leased, or used for short stay accommodation, it won't qualify as new for FHOG. A quick Airbnb history can be enough to sink eligibility. Ask the selling agent for clear written confirmation and check the contract.
2. Forgetting Your Partner's History
Your spouse or domestic partner's property history counts, even if they are not on title. If they once lived in a property they owned, that can make you ineligible. Capture their details and history early when you are planning the purchase.
3. Missing the Move In Window
Renovations, tenancy run offs, or builder delays can push out your plans. Schedule conservatively so you can move in within 12 months and stay put for 12 months. If things change, tell the SRO within 14 days.
4. Company or Trust Structures
FHOG is only for natural persons. If you are planning a family trust or company purchase, explore duty concessions separately, but the grant will not apply.
5. Over the Cap Without Realising
With builds, it's easy to creep past $750,000 once variations, upgrades and site costs stack up. Keep a live tally of your total construction cost and get written quotes for any extras before you sign.
6. Owner Builder Evidence
Owner builders can be asked to show evidence of building costs totalling at least the grant amount, excluding labour. Keep meticulous records from day one.
FHOG Application Timeline
Pre approval stage: talk to your lender about lodging through them as an approved agent if you will need funds at settlement or the first progress payment.
Contract signed: confirm the property is 'new' under SRO rules and keep the price under $750,000.
Completion/settlement: if not lodging through the lender, lodge directly with the SRO within 12 months.
Move in: within 12 months, then stay for 12 months. Put evidence on file.
Can You Combine FHOG with Other Assistance?
Often, yes. In practice, Melbourne first home buyers commonly stack:
- FHOG (new homes only, up to $750,000)
- First home buyer duty exemption/concession (new or established homes, up to $750,000 dutiable value)
- Temporary off the plan duty concession where eligible (now extended to 20 October 2026)
Shared equity programmes have changed over time, so always check the current status on official channels if you are relying on them as part of your plan. The FHOG and duty rules above are the staples many buyers use to get the numbers to work.
Melbourne First Home Buyer Checklist
Location vs price cap: plenty of new builds under the cap exist in growth corridors like Werribee, Clyde North and Wollert, as well as select infill projects closer in. Just be mindful of total build costs on house and land packages.
Off the plan timing: the earlier in the build you sign, the more likely your dutiable value benefits from construction costs yet to be incurred, which can reduce duty. This is separate to FHOG but can be powerful in apartment heavy suburbs near the tram and train network.
Evidence file: keep digital copies of identity documents, the contract, variations, occupancy certificate, and proof of residence. It makes SRO requests much less stressful.
Frequently Asked Questions About FHOG
Does FHOG Apply to Established Homes?
No. FHOG is for new homes only. If you are buying established, explore the first home buyer duty exemption or concession instead.
Can I Rent Out a Room While Living There?
The rules focus on you occupying the home as your principal place of residence for 12 continuous months. Renting out rooms can create complexity; seek tailored advice before you proceed. The SRO may request evidence of your occupancy.
What If My Partner Has Owned Before but I Haven't?
Your partner's history counts. If they received an FHOG or lived in a property they owned, you're generally not eligible as a couple. Consider the purchase structure carefully and get advice before you sign.
Can the Grant Be Paid at Settlement?
Yes, if you apply through an approved agent (your lender). If you lodge directly with the SRO, they pay after approval into your nominated account.
What Happens If I Can't Move In Within 12 Months?
You must notify the SRO within 14 days. You may need to repay the grant, and penalties can apply if you do nothing.
Buying your first place around Melbourne should feel exciting, not confusing. If you want a calm set of eyes on your plan, we're here to help.
Contact Pearson Chambers Conveyancing for straight answers on FHOG eligibility, duty savings, and an expert complimentary Section 32 contract review before you commit.