The First Home Owners Grant (FHOG) is an incentive offered by the Australian government for the purpose of helping first home buyers enter the property market in both metropolitan and regional areas. Each state’s revenue office manages the subsidisation slightly differently. In Victoria, since 1st July 2017, the incentive includes a one-off payment of:
- $10,000 if the purchased property is in metropolitan Melbourne (list here)
- $20,000 if the purchased property is in regional Victoria (list here)
How can I be eligible?
To be considered for the FHOG in Victoria, the purchaser will need to satisfy all the following conditions:
- You must be aged 18 or over and be an Australian citizen or permanent resident either by the time you settle or when the home is ready to be occupied.
- You or your spouse/partner must not have previously received a FHOG in Australia.
- You must not have owned a home or other residential property in Australia, either jointly or separately.
- You must occupy the home for at least 12 months within 12 months of settling on the property or from when the home is fully built.
What properties can I purchase?
- The property you would like to purchase must be a new home, that is, it is either sold by developers or built by yourself. Unless you have entered a contract before 1 July 2013, established homes are no longer eligible to receive the FHOG.
- The property must be less or equal to $750,000. If your interested property is over the threshold but you are first home buyer, you may be eligible for the newly released stamp duty discounts.
Where can I apply?
There are three ways you can apply for the FHOG:
- Through your mortgage/finance broker or banker as part of your loan application process
- Directly yourself via the Victorian State Revenue Office (SRO) website
- Through your conveyancer/solicitor
If you intend to get a loan for your property, the banker or broker responsible for providing your finance will usually assist you with lodging the application. Once your application has been granted, you will receive a Unique Identifier Number as the acknowledgement (UNI).
For cash purchasers or if your finance provider will not assist in your application, you can only submit the application after settlement has completed, through the SRO website. You must lodge your application within 12 months of settlement or completion of construction of your home.
In most cases, the grant will be sent to your nominated bank account after settlement has taken place. If you require the grant as part of the source funds for your settlement, you must lodge your application with an approved agent (usually your banker or broker).
Wealthsource can help with your application!
At Wealthsource, we have assisted lots of our clients to apply and successfully receive their FHOG. If you would like to have a chat with us and see whether you are eligible or not, do not hesitate to give us a call to make an appointment, we are more than happy to discuss further with you.