First Home Owner Grant 2025: Everything You Need to Know Before You Buy

[Key Takeaways]

• The First Home Owner Grant (FHOG) is a non-repayable, one-off cash payment designed to help first-time buyers buy or build a new home in Australia.
• Applicants are only eligible if they meet the no prior ownership rule and occupy the new home as their main residence for up to a year.
• Grant amounts and property value caps vary significantly by state, ranging from the usual $10,000 up to a temporary $30,000 in states like Queensland and Tasmania.
• The FHOG can be stacked with federal programs like the Home Guarantee Scheme and state stamp duty concessions for maximum savings.

Introduction

Entering the Australian property market is a huge financial undertaking. The First Home Owner Grant (FHOG) is a critical part of this process. This one-off grant is funded by the state and territory governments to give first-time buyers a head start in their property financing.

So, why does it matter now? With property values rising, claiming the grant can save first-home buyers tens of thousands of dollars up front, significantly reducing the deposit required and speeding up your path to property ownership.

This article will lay out key details of the FHOG: the eligibility rules, current amounts across different states, and how to successfully apply for the grant.

What Is the First Home Owner Grant?

The FHOG is a one-off cash payment from your state or territory government designed to provide direct financial relief for first-time home buyers. It was introduced on 1 July 2000 to offset the effect of the GST and acts as a non-repayable grant. The primary goal of the First Home Owner Grant scheme is simple: to make new housing stock more accessible, so first-time buyers have a realistic shot at getting into the market.

The grant is strictly for individuals (not companies or trusts) who, along with their partners, have never previously owned residential property in Australia. This financial boost can assist those new to real estate — whether you’re a single person buying a new apartment or a family planning to build your first home on vacant land.

Who Is Eligible for the First Home Owner Grant?

Purchasing your first residential property and curious to see if you qualify for the FHOG? To be considered for the grant, you must satisfy the following national and state-based criteria:

• First-time buyer status: Must be a “natural person” (not a company or trust), and the applicant(s) and their spouse/partner must have never owned residential property in Australia before.
• Citizenship and age: At least one applicant must be an Australian citizen or permanent resident and aged 18 or over.
• Property type: The grant is restricted to the purchase or construction of a new home (established or previously occupied homes are ineligible).
• Property value cap: The property must generally fall under a maximum value cap (often between $600,000 and $1 million), which varies by state and territory.
• Residency rules: The home must be occupied as the Principal Place of Residence (PPR) for a continuous period (usually 6 to 12 months) starting within 12 months of purchase or completion.

What Qualifies as an Eligible Home?

In the context of first home owner grants, an eligible home is defined as:

• A brand new dwelling: A house, townhouse, or apartment/unit that has been recently constructed and has not been previously sold or occupied as a place of residence.
• A contract to build: Entering into a contract with a registered builder to construct a new home on vacant land you own.
• A substantially renovated home: A property that has undergone heavy internal or external renovations, equivalent to the construction of a new home. It must not have been lived in or sold since that renovation.

How Much Is the First Home Owner Grant?

The grant amount can differ depending on where you purchase, the property’s value, and the contract date. If you’re wondering how much is the FHOG in 2025, the numbers currently hover around $10,000 to $50,000. 

To determine your precise grant amount and when you will receive it, these specific eligibility factors are critical because they directly affect payment:

• New home criteria: The grant is only for new homes. If your property is established or the renovations aren’t considered “substantial” enough, the grant will be denied.
• Property value: If the total value of the home and land exceeds the maximum cap specified by your state (e.g., $750,000 in Queensland), you will be entirely ineligible for the grant.
• Contract date: In states with temporary boosts (like Queensland and Tasmania), the exact date your contract was signed or your foundations were laid determines whether you receive the standard amount ($15,000 or $10,000) or the higher temporary amount ($30,000).
• Application process: Applying through your lender is the quickest method, as the funds are paid at settlement or with your first construction payment. If you apply directly to the Revenue Office, you’ll have to wait until the transaction is complete.

It’s also important to note that the FHOG is just one component of a broader support package and can be combined with other property financing options, such as state-based stamp duty concessions and the recently updated First Home Guarantee scheme.

First Home Owner Grant by State and Territory

How to Apply for the First Home Owner Grant

To get started, here’s a step-by-step guide to aid your application process.

1. Check Eligibility

Use the relevant state Revenue Office’s online tools to confirm you meet all criteria. This includes age, residency, previous ownership status, and the property’s value or type. This first step is your essential due diligence to prevent application rejection later on.

2. Gather Documents

Required documents are extensive and generally fall into three categories for all applicants and their spouses/partners:

• Proof of identity and citizenship: Australian passport, birth certificate, or evidence of permanent residency/visa status.
• Property documents: Signed and dated Contract of Sale or Building Contract, Title Search, and, for new builds, the Certificate of Occupancy or a vendor statement confirming the home has not been previously occupied.
• Other supporting documents: Marriage or divorce certificates, if applicable.

3. Submission

Once you’ve compiled all your documents, you can submit them via:

• Lender/Approved Agent: This is the most common method. If you require the grant funds for settlement or the first progress payment, you must apply through your lender, who will lodge the forms on your behalf and integrate the grant into your financing.
• State Revenue Office: If you are not getting finance, or your lender isn’t an Approved Agent, you can lodge directly with the Revenue Office after settlement or completion.

4. Payment Timeline

If you’re applying through a lender, the grant is typically paid at settlement (for purchases) or with the first progress payment (for building contracts). If applying directly to the Revenue Office, the payment is processed after the transaction is completed and verified, which can take up to 10 working days.

Throughout your application process, remember these tips to avoid making common mistakes:

• Residency: Be meticulous about meeting the minimum six-month residency requirement. Failure to do so will result in the grant being clawed back, often with significant penalties and interest.
• Timing: Lodge your application within 12 months of completing the transaction (settlement or construction completion).
• Joint applications: Ensure everyone who will be on the title is listed as an applicant and has never owned property before.

Other Support Available for First Home Buyers

While the First Home Owner Grant is a great starting point, it isn’t the only monetary assistance available for first-time buyers looking to enter the market:

• Home Guarantee Scheme (HGS): This federal scheme, run by Housing Australia, includes:
  • First Home Guarantee (FHG): Buy a home with a 5% deposit and avoid LMI.
  • Regional First Home Buyer Guarantee: Specifically supports regional buyers.
• Stamp duty concessions or exemptions: Most states offer significant savings on the transfer duty (stamp duty) for first home buyers, typically tied to a property’s value.
• First Home Super Saver (FHSS) Scheme: Allows first home buyers to make voluntary contributions to their superannuation (up to a $50,000 total cap) and withdraw them, along with associated earnings, to put towards a deposit. This provides a significant tax benefit.
• Shared equity schemes: Schemes like the planned federal Help to Buy initiative allow the government to take a minority equity stake in your home, reducing the deposit and mortgage required. Some states, like Queensland (Boost to Buy), have their own versions.

Expert Tips for First-Time Buyers

1. Choose the Right Property Type

Since first home owner grants focus on new homes, look at apartments, townhouses, or house-and-land packages. This aligns your purchase with the best possible grant and concession combinations.

2. Work with a Specialist

Engage a residential buyer’s agent who is highly familiar with the FHOG and state-based rules. They can structure your financing and purchase to ensure you meet all criteria and maximise your total grants and concessions.

3. Keep Updated on 2025 Policy Changes

Government support is dynamic and can change fast. Stay updated on new property price caps for the HGS and any temporary boosts to the FHOG, which can change rapidly. For instance, some states have removed the property value cap for new builds, which can widen your prospects.

Ready to turn your first purchase into a true investment asset? 

Get in touch with the InvestorKit team to see how our data-driven research and proven insights can accelerate your portfolio growth and inform your next strategic move in the Australian real estate market. Schedule your free 15-minute discovery call now!

Frequently Asked Questions

How much is the First Home Owner Grant in 2025?

It varies by state, typically ranging from $10,000 to $30,000.

Can I use FHOG for an off-the-plan property?

Yes, provided the off-the-plan property (apartment or unit) qualifies as a new home that has not been previously occupied or sold as a residential premises before settlement.

How long do I need to live in the property?

You must live in the property as your principal place of residence for a continuous period of at least 6 to 12 months, depending on your state, starting within 12 months of the eligible transaction’s completion.

Can I combine the grant with other schemes?

Yes, in most cases. The FHOG is a state grant that can be used in addition to federal schemes like the First Home Guarantee (FHG) and the First Home Super Saver (FHSS) Scheme, as well as state-based stamp duty exemptions and concessions.

Can the First Home Owner Grant be used as a deposit?

While the grant is paid at settlement, the funds can effectively contribute to the amount you need to save, allowing you to use less of your personal savings towards the deposit. Your lender will account for the grant when calculating your finances.

Is the First Home Owner Grant taxable?

No, the FHOG is a one-off payment from the government and is not considered taxable income.

What happens if I sell early or move out?

If you fail to meet the mandatory residency period (usually 6 or 12 continuous months), you are considered ineligible. You must notify the relevant Revenue Office immediately and repay the entire grant amount, which may also incur financial penalties and interest.