Skip to content
An Insight into the First Home Owner Grant

An Insight into the First Home Owner Grant

An Insight into the First Home Owner Grant

An Insight into the First Home Owner Grant

05 March 2024

If you’re thinking about purchasing or building your first home, you might have some questions about the first home owner grant (or FHOG for simplicity’s sake!) and whether you’re eligible for it. We’ve done some research into the grant in an effort to condense and simplify the information for you. After all, it’s important to be familiar with the grant and its terms… you’ll only be eligible for the one purchase, so you don’t want to miss out!

What is the First Home Owner Grant?

The FHOG is a one-off payment that the State government introduced to assist first home builders and buyers to enter the real estate market. Let’s be honest, in today’s economic landscape, cracking into and navigating the market is becoming more and more difficult, so it’s more important than ever that young people inform themselves about their options.

How much is the FHOG?

The grant is $10,000, or an amount paid to buy or build the house if it’s less than $10,000 (which, let’s be real, it won’t be).

How do I know if I’m eligible for the FHOG?

To be eligible for the FHOG:

  • you must be over 18 years of age (note that underage applicants can apply for an exemption from the age requirement. If you’re in a position to buy a house and you’re still underage, let us know your secret!).
  • at least one applicant must be an Australian citizen or permanent resident when making the application;
  • you must begin living in the home within 12 months of purchase or completion;
  • you must live in the home continuously for at least six months;
  • you cannot have owned residential property in Australia (this one’s kind of a given seeing that it’s called the first home owner grant);  
  • you must never have received a first home owner grant from any Australian jurisdiction;
  • you must build or purchase a newor substantially renovated home.

Are there any limitations I should know about?

Most West Australians won’t be eligible for the FHOG if the value of the home exceeds $750,000. This amount may vary for first home owners who live in Northern Western Australia – if this applies to you, you can find further information on the State government website here.

What is the First Home Owner Rate of Duty?

Sadly, with the purchase of any property comes transfer duty. Transfer duty is essentially a government tax that is imposed on transactions involving the transfer of property. Yep, another tax… yay. The good news is that first home owners do not need to pay transfer duty where the property value (that is, both the house and land value), is less than $430,000. If the property value exceeds this amount, then you may still be eligible for the first home owner rate of duty, which is a concessional rate that applies to certain transactions. This can be extremely beneficial as otherwise transfer duty can amount to a hefty sum. If you’d like to learn more about the rate of duty that will apply to your transaction, follow this link.

Will both my partner and I receive the FHOG?

Only one FHOG is payable per transaction, meaning if you and your partner and purchasing a home together, you will only receive a single grant of $10,000.

How do I apply for the FHOG?

You can find more information about applying for the FHOG here.

We hope this guide has been helpful! If you have any further questions about the FHOG or would like some assistance with your home ownership journey, reach out to the Mr Enthusiast team now!