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Buyers / The Victorian First Home Owner Grant: Eligibility, Benefits, and How to Apply
The Victorian First Home Owner Grant: Eligibility, Benefits, and How to Apply

The Victorian First Home Owner Grant: Eligibility, Benefits, and How to Apply

Purchasing your first property is a memorable and rewarding experience. If you’re planning to buy or build a home in Victoria, there is an available option for you to help facilitate this property milestone.

If you are buying your very first home in Victoria, you could qualify for the First Home Owner Grant from the State Revenue Office. This $10,000 grant can help you purchase or build a brand-new home, whether it is a house, townhouse, apartment, unit, or any other residential property. To receive this, you must commit to living in the property for at least twelve consecutive months.

To qualify for the grant, the property must fulfill the following conditions:

  • The home’s total value cannot exceed $750,000. For off-the-plan properties, this limit applies directly to the contract price.
  • The property should never have a history of getting sold, rented out, lived in, or used for short-term accommodations.An exception may apply if the home has been entirely rebuilt after a demolition or has been subject to substantial structural renovations.
  • The applicant is required to occupy the property as their primary residence (principal place of residence).
  • The construction or purchase agreement must have been signed and approved on or after 1st July 2013.

A First Home Owner Grant applicant must be named on the property title to be considered eligible. If an applicant is married or has a partner, their partner’s details must also be included in the application, as they will be assessed as well. As part of the basic criteria, all applicants must be natural persons (not a company or trust) and must be at least 18 years old at settlement or completion of construction.

To qualify, at least one of the applicants must hold Australian citizenship or permanent residency by the specified date. For home purchases, the relevant date is the date of possession (settlement). For new builds, the relevant date is when the home is ready for occupation.

Online tools like the First Home Buyer Calculator allow you to check payment options for your first home, including access to the First Home Owner Grant. Once you input required details, like your annual income and monthly living expenses, these tools will calculate your eligibility, potential loan amount, and more. 

Why should you apply for a grant?

As a buyer, receiving a once-off, tax-free grant from the government can provide a massive boost when establishing a new home. Saving for a deposit is easily the toughest part of buying real estate, so the grant can help get you over the line if your funding falls a bit short.

Here are some of the other indirect benefits of securing the grant:

  1. It could help you waive the need for Lenders Mortgage Insurance (LMI)
    If you have a deposit of less than 20%, your bank will likely charge a sizeable fee called Lenders Mortgage Insurance (LMI). Because the grant adds directly to your savings, it increases your total deposit size. This can either reduce the amount of LMI you have to pay or help you reach that 20% mark to skip LMI entirely, potentially saving you thousands of dollars.
  1. You get to focus on other expenses
    When you’re buying a home, you also have to factor in various hidden costs to protect your investment. With the grant padding your savings, you can more easily attend to expenses like legal and conveyancing fees, building and pest inspections, home upgrades, and moving costs.
  1. It pairs with stamp duty concessions
    If you qualify for the grant, you will likely qualify for First Home Buyer stamp duty concessions as well. Stamp duty is a hefty tax for home buyers, and reducing or eliminating it can often save you tens of thousands of dollars, even more than the value of the grant itself.
  1. It motivates you to buy or build new properties
    This grant specifically targets new builds, significantly renovated properties, or never-before-lived-in homes. Purchasing a new or fairly new property means fewer maintenance headaches, as well as the immediate enjoyment of modern, energy-efficient amenities.

Check the fine print

Please take note that if you move out or rent the property out within 12 months of settlement or completion of construction, the grant will be forfeited and you will be required to pay it back.

While navigating the paperwork requires a bit of diligence, the potential rewards make the effort entirely worthwhile. An extra $10,000 in your pocket, paired with potential stamp duty savings, can completely transform your home-buying timeline and take the sting out of those unavoidable hidden costs.

You can consult with us at Love & Co to talk about your eligibility for a grant and discuss the available property options in the Victoria area. Taking this step today could be the way to unlock the front door to your brand-new home.

Get started today

You can check out our other blog posts to help you navigate the purchasing process, such as our Tips for Buying Your Dream Home at Auction. We also offer a downloadable ebook, Your Property Buying Guide, designed to help you plan your next move with clarity and confidence. If you are ready to look at properties in Melbourne’s northern corridor, please feel free to connect with our team at Love & Co, and we will help you find your perfect home.