First Home Buyers Grant in Victoria: Updated Rules & Benefits

Victoria’s First Home Buyers Grant, or First Home Owners Grant (FHOG), is a government program that seeks to make homeownership accessible to first-home buyers. The grant provides an upfront payment of $10,000 towards the purchase or building of a new house not exceeding $750,000. This assistance can do wonders in lessening the out-of-pocket cost of entering the property market, achieving your dream of homeownership.

Eligibility and Application

You must qualify under specific requirements to obtain the First Home Owners Grant, which include age, residency, and property. The application process is simple, which is commonly handled by your lender or directly from the State Revenue Office of Victoria. There are additional schemes such as stamp duty concessions, which cost you less.

Benefits and Financial Planning

The First Home Buyers Grant can be combined with other discounts, including stamp duty rebates, to achieve the highest amount of savings. Understanding home loan rates is also critical, as this will impact your mortgage rate. Efficient Capital offers customized loan products to help first-time home buyers get the most out of the funds.

First Home Buyers Grant in Victoria: New Rules & Advantages

Can you recall what your first house in Victoria looked like in your mind’s eye? The process of buying a house can be exciting and scary, especially on the financial side. Luckily for first-home buyers, the Victorian government has the First Home Buyers Grant, also called the First Home Owners Grant (FHOG) in place, which makes this dream a reality. The First Home Buyers Grant (FHOG) helps first-home buyers who are buying or building a new house. In this extensive blog, we will cover the new regulations and aspects of the First Home Buyers Grant in Victoria, so you can make the most of it.

What is the First Home Buyers Grant?

The Victorian First Home Buyers Grant, known as the First Home Owners Grant (FHOG), provides one first home owner with $10,000 as a once off payment. The first home owner grant is available for first home owners who are buying or building a new home valued at $750,000 or under. The home should never have been on the market or occupied as a dwelling residence previously. The cause for this grant is to reduce the expense of owning your first home, thereby making homeownership more affordable and within reach.

Eligibility Conditions for the First Home Owners Grant

• Be over 18 years of age at the time of settlement or completion of construction.
• Must have at least one of the applicants be an Australian citizen or a permanent resident.
• Must be a property that was never sold or occupied before.
• Must be a property value of $750,000 or less.

You and your spouse or partner should not have had an interest in an existing residential property in Australia before.

You must utilize the house as your main place of residence (PPR) in 12 months of settlement and reside there continuously for at least 12 months.

Eligibility Criteria	Details
Age	At least 18 years old at settlement
Residency	At least one applicant must be an Australian citizen or permanent resident
Property Type	New home, never previously sold or occupied
Property Value	Valued at $750,000 or less
Prior Ownership	No prior residential property ownership in Australia by you or your spouse/partner
Residency Requirement	Occupy as principal place of residence for 12 months within 12 months of settlement

Application Process for the First Home Owners Grant

It is simple to make an application for the First Home Owners Grant, but you must do so following the correct procedures. You will usually have your lender (for example, a bank or credit union), who is an approved agent and make the application on your behalf. You will have to sign and witness the application form. If you are not employing the use of an approved agent, you can lodge the application with the State Revenue Office of Victoria yourself. The application must be lodged within 12 months from the end of construction or settlement.

For more information regarding approved agents or to lodge a direct application, visit the website of the State Revenue Office of Victoria: sro.vic.gov.au.

First Home Guarantee (FHG):

This is a government program that allows first-time buyers to purchase a home using as little as a 5% down payment. The government guarantees 15% of the loan, making it easier to secure a home loan with less savings.

First Home Buyers Super Saver Scheme:

Under the scheme, you can make additional contributions to your superannuation fund to save for your home deposit. You can withdraw up to $15,000 within a year (or $50,000 in total), with couples able to save $100,000. It is tax-favored and also helps you accumulate your deposit faster.

Incentive	Description	Benefit
Stamp Duty Exemption	No stamp duty for properties ≤ $600,000	Savings up to $31,070
Stamp Duty Concession	Reduced stamp duty for properties $600,001–$750,000	Sliding scale savings
First Home Guarantee	5% deposit with government guarantee	Easier loan approval
Super Saver Scheme	Save for deposit via superannuation	Up to $50,000 per person, tax benefits

Home Loan Rates for First-Time Home Buyers

When you borrow to buy a home, it’s important to look at current home loan rates because they will affect your monthly repayments. At Efficient Capital, we appreciate that first-time home buyers usually experience different challenges, and that’s why we have competitive home loan rates designed to your specifications. Our expert team can guide you to explore loan options that best fit your affordability so you can make the most out of the First Home Buyers Grant and other concessions. For personalized advice, contact Efficient Capital today.

How to Make the Most of Your Savings

First Home Buyers can combine the First Home Owners Grant with stamp duty concessions or exemptions and save thousands of dollars on the cost of a home. For example, if you’re buying a new home for $550,000, you may qualify for the $10,000 First Home Owners Grant and be exempt from stamp duty and save thousands of dollars upfront. The grants and concessions as a package can be a giant savior in your ability to purchase your first home.

In order to qualify for stamp duty concessions, make an application to the State Revenue Office of Victoria through your solicitor or conveyancer. You must be entitled by the conditions as well, including living in the home as your primary residence.

Conclusion

At Efficient Capital, we’re dedicated to guiding you through each step of your home buying process. From shopping around for competitive home loan rates to helping you access government grants, our staff is dedicated to helping you make your dreams of home ownership a reality. Contact us today to learn more about how we can assist you.