If you're thinking about buying your first home, you’ve probably heard of the First Home Owner Grant (FHOG) — but understanding how it works can be confusing.
The good news? It’s actually pretty simple once you break it down.
Here’s the easy version.
1. What the First Home Owner Grant actually is
The First Home Owner Grant (FHOG) is a one-off payment from the government to help first-home buyers purchase or build a brand-new home.
A few key things to know:
- It’s not for established homes
- It applies to new builds, brand-new homes, off-the-plan, or house-and-land packages
- It’s designed to help with your upfront costs
Each state runs its own version of the grant — so the amount and rules vary depending on where you buy.
2. Who’s eligible for the FHOG?
Eligibility is similar across Australia. You generally must:
- Be a first-home buyer
- Be an Australian citizen or permanent resident
- Live in the home as your main residence for a minimum period
- Buy or build a new home (not an established property)
- Meet your state’s price caps
If the home has been lived in before, it usually won’t qualify.
3. How much is the grant?
The FHOG amount depends on the state you’re buying in, but it generally ranges from $10,000 to $30,000. Each state sets its own rules, price caps and payment amounts, so it’s important to check the latest details for your location.
You can quickly look up the exact grant amount for your state at:
4. Can the FHOG be used toward your deposit?
In many cases — yes, the FHOG can help with your deposit, but it depends on the lender. Some banks will allow the FHOG to form part of your deposit, while others still require a portion of genuine savings from your own account.
This is where a mortgage broker becomes incredibly helpful. A good broker knows which lenders allow the FHOG to be used upfront and can structure your finance so the grant works in your favour.
Using the right lender and the right structure can make a big difference in how quickly you get into the market.
5. How and when do you apply?
There are two ways to apply:
✔️ Through your lender (most common) — Your broker or lender submits the FHOG forms with your loan application — easiest and quickest way.
✔️ Directly to your state revenue office — This applies if you’re not using a lender or if you’re applying after settlement.
In most cases, applying through your lender speeds things up, and the grant is processed automatically at the right stage of your build.
6. Why the FHOG matters for first-home buyers
The FHOG can help you:
- Boost your deposit
- Reduce upfront costs
- Lower your total loan amount
- Enter the market sooner
- Make building more affordable
