Understanding FHOG: Your Key to First Home Ownership
Be it that you are just about to buy your first home or you are just starting to research the very initial stages, understanding the types of government assistance available can be crucial. From grants to other incentives designed to help first-time homebuyers, this information not only provides a clear view into your finances but also helps you save as much money as possible.
How Much is the First Home Owners Grant VIC?
The First Home Owner Grant (FHOG) in Victoria applies exclusively to newly constructed homes or those built from the ground up. Eligible applicants can receive $10,000 when purchasing or building in Victoria. Your first home can include a house, townhouse, apartment, or unit, provided:
- Its value does not exceed $750,000.
- It is new—sold as a residential property for the first time and less than five years old.
Note: The FHOG Victoria does not extend to purchases of holiday homes or investment properties.
First Home Owners Grant VIC Eligibility
To qualify for the First Home Owner Grant in Victoria, you must meet several eligibility criteria:
- Neither you nor your spouse/partner should have previously received a FHOG anywhere in Australia.
- You must not have owned a home or any other residential property in Australia, either jointly or separately, prior to 1 July 2000. However, you may still be eligible if you or your spouse/partner owned property on or after 1 July 2000 but did not use it as your primary residence.
- You must occupy the home for at least 12 months within the first year of settling (when you receive the keys) or from when the construction of the home is completed.
- You must be at least 18 years old and either an Australian citizen or a permanent resident at the time of settlement or when the home is ready for occupancy.
How to Apply for First Home Owners Grant VIC
Securing the First Home Owner Grant is straightforward with the assistance of your Mortgage Choice broker, who will navigate the paperwork for you. Fill out the form, and a local expert will reach out to you promptly.
Are First Home Buyers in VIC Exempt from Stamp Duty?
First-time homebuyers in Victoria can benefit significantly from stamp duty savings:
- Properties valued below $600,000 are entirely exempt from stamp duty, resulting in potential savings of approximately $31,000.
- For homes valued between $600,000 and $750,000, you can still qualify for reduced stamp duty rates. For example:
- A home purchased at $605,000 incurs a stamp duty of $1,045.
- A $745,000 home would have a stamp duty of $38,444.
These stamp duty savings apply to both established and newly built homes for first home owners in Victoria.
Pilot Shared Equity Scheme
A new Pilot Shared Equity Scheme provides eligible first home buyers the opportunity to own a home with as little as a 5% deposit. Under this Victorian State Government incentive:
- The government acquires a proportional interest of up to 25% in the property.
- Participants can then borrow up to 70% of the property’s value, adding their 5% deposit to the government’s share.
- When the property is eventually sold, the first home buyer will repay the government’s proportional interest.
Eligibility includes singles with an income of $75,000 per annum or less, or $95,000 or less for couples.
Off-the-Plan Purchases
First home buyers purchasing an off-the-plan property may qualify for a duty concession. This concession entails paying duty based on the property and construction value at the contract date. Typically, when entering into a contract for an off-the-plan purchase, construction either hasn’t started or isn’t finished yet, resulting in reduced duty payments.
Eligibility: First home buyers must intend to occupy the property as their principal place of residence.