Saving up for your first home can be difficult. It takes commitment and hard work, but it doesn't need to be out of reach for first home buyers in Victoria. That's why the government introduced the First Home Owner Grant (FHOG) — to make it easier for first home buyers to enter the property market.
Since its inception in 2000, eligibility for FHOG and the type of property one can purchase has changed. Although, is the first home owners grant still available in Victoria?
Yes it is, however the amount varies depending on your eligibility and the type of property you plan to buy. Read this article from What If We Finance to know the ins and out of FHOG.
How much is the First Home Owners Grant in Victoria?
In Victoria, a $10,000 grant is available for first-home owners who buy or build a new house that's worth $750,000. If you choose to buy or build a new house in regional Victoria, the amount can increase up to $20,000.
How much is the First Home Owners Grant in Melbourne?
For first home buyers, the FHOG entitles you to a $10,000 grant on your first residential house if it meets the following criteria:
- Home is valued less than $750,000 and
- Within metropolitan Melbourne and
- The home is newly built or
- It's an existing property being sold as a home for the first time, or
- It's less than five years old, or
- It's based around a land and building package.
Is FHOG only for new homes?
Yes. You can only apply for the grant if you purchase a home which has been never been lived in, and is newly constructed. Furthermore, the property should not have been sold previously for you to be eligible for the FHOG.
First Home Buyer Stamp Duty Exemption in VIC
Aside from the FHOG, first home owners can also apply for a first home buyer stamp duty exemption in Victoria if their contract date is before or after July 1, 2017. This is available for home buyers who purchase a new property with a dutiable value of up to $600,000.
This is all part of the government's initiatives to help first home buyers. In our years operating as an independent mortgage broker firm in Melbourne, we've noticed that buying a home in Victoria feels inaccessible for many first home buyers. In fact, median housing prices in Melbourne have increased by over 40% since 2012. In 2016, houses in Metropolitan Melbourne rose to as high of $610,000, while units have also reached $490,000.
Since home ownership rates in Victoria decreased from 76% to 69% in 2014, the government concluded that it was time to introduce changes that would make it easier for first home buyers to land their dream homes. Thus, the First Home Owners Grant and First Home Buyer Stamp Duty exemption in Victoria was introduced.
Will the First Home Owners Grant continue in Victoria this 2021?
There has been recent discussion, that the future of the First Home Owner Grant in Victoria is in doubt. However, it is understood that the state government is planning to extend the scheme past June 30, 2021.
It would be misfortunate to many, if they decide to discontinue it as the scheme has been wildly popular. According to the latest figures shared by the Victorian Treasurer's Office to domain.com.au, a massive 104,000 first-home buyers received a FHOG within July 1, 2017 to March 31, 2021. Meanwhile, 143,000 home buyers and owners received stamp duty exemptions or discounts in Victoria.
Using the First Home Owner Grants and Stamp Duty Exemptions or Discounts, residents in Victoria have collectively saved over $3.09 billion on their first home; with Victoria's housing market predicted to have a 10% price increase this year, experts are now asking for the extension of the FHOG.
Need more information regarding the extension of FHOG and stamp duty exemption or reduction? Reach out to Melbourne Mortgage What If we Finance today. We have been in the industry for over a decade and we stay updated on the latest legislation changes. We’ll keep you informed on the news regarding this scheme and other industry-related topics.
Don’t hesitate to contact us today! We’ll get back to you as soon as we can.