A Simple Guide to the First Home Owner Grant in Victoria (FHOG)

For many first home buyers in Victoria, the biggest challenge is saving enough to cover the upfront costs of building or buying a new home. The First Home Owner Grant (FHOG) is designed to give eligible buyers a financial boost, making the first step into the market much more achievable.

Here’s everything you need to know before starting the process.

What Is the FHOG?

The First Home Owner Grant is a $10,000 payment from the Victorian Government that helps first home buyers who are building a new home or buying a newly constructed property. It’s not a loan and doesn’t need to be repaid. The money goes straight towards reducing your upfront costs, which can make a noticeable difference when you’re planning your first home.

Who Is Eligible for the FHOG in Victoria?

Eligibility is straightforward, but there are a few important rules. You may qualify if:

You’re buying or building a brand new home
The home is valued at $750,000 or less
You’re an Australian citizen or permanent resident
You haven’t received the FHOG before
You plan to live in the home for at least 12 months

If you're unsure whether you meet any of these requirements, we can check your eligibility as part of our finance-first process.

What Types of Homes Qualify?

In Victoria, the FHOG applies to:

Newly built homes
Off-the-plan properties
House and land packages
Substantial renovations that count as 'new' by government definition

Most first home buyers using the FHOG are building a new home through a house and land package.

How the FHOG Helps First Home Buyers

The FHOG doesn’t replace your deposit, but it effectively reduces your upfront financial burden, which can make entering the market far more achievable. Here’s how it helps:

It offsets construction or legal costs
It reduces how much you need to save before starting
It pairs well with low deposit loan options
It can be combined with the First Home Guarantee to avoid LMI

For many buyers, this combination brings the goal of home ownership closer than they expect.

Using the FHOG With a Low-Deposit Loan

One of the most effective ways to use the FHOG is alongside a 5 percent deposit loan under the First Home Guarantee. This allows you to:

Enter the market with minimal savings
Avoid paying Lenders Mortgage Insurance
Use the FHOG to support the upfront costs of construction

Many buyers who assume they’re not ready are surprised at how quickly this combination adds up to a feasible plan.

Do You Get the FHOG Before or After Settlement?

For house and land builds, the grant is usually applied at the slab stage, meaning your lender incorporates it into the early part of the loan process. For new builds and off-the-plan purchases, timing may differ slightly depending on the structure of the contract.

Either way, the grant is incorporated into your finance plan so you receive the full benefit at the right time.

Do You Need to Apply Yourself?

You can, but most people choose not to. Your lender or mortgage broker can apply for the FHOG on your behalf, which ensures everything is submitted correctly. At Tomassi Lanigan, we include FHOG assessment and processing as part of your financial review, so nothing is missed.

Is the FHOG Going Away?

There is ongoing discussion around housing affordability in Victoria, but the FHOG has remained consistent for several years. While policy can always change, it remains one of the most reliable incentives available to first home buyers.

How Tomassi Lanigan Helps You Secure the FHOG

The FHOG is just one part of a much bigger picture. We help you:

Confirm your eligibility
Apply at the right time
Combine the grant with the best low-deposit options
Plan your build and land purchase around your budget

The result is a clear, structured pathway that uses every available advantage to get you into your first home.

Ready to See If You Qualify?

If you’re unsure whether the FHOG applies to you, we can check your eligibility, structure your numbers and give you a clear plan for moving forward.

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