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VIC first home buyers

VIC First Home Owner Grant

The First Home Owner Grant in Victoria pays $10,000 to eligible first home buyers who buy or build a new home valued at up to $750,000 and live in it as their principal place of residence. It is administered by the State Revenue Office.

This page sets out who qualifies, which properties the grant covers, how it interacts with first home buyer duty relief, and what the rules mean specifically for buyers searching in Barwon Heads and the surrounding Bellarine. Your Mortgage Broker Barwon Heads(/) arranges home lending across the area and has written this as a plain-English summary, with every figure linked to the SRO source.

A family celebrating on the lawn in front of their new house

What It Is Worth Right Now

The figure that surprises most first home buyers is how modest the headline payment is: a flat $10,000, one-off, for every eligible new home in Victoria. There is no regional loading anymore. Many buyers still arrive with the old regional scheme in mind, having heard that building outside Melbourne earned a larger payment, but that scheme is closed and does not apply to any current contract. The SRO's eligibility page confirms the single statewide amount. Ten thousand dollars matters, and it stacks with duty relief that can be worth far more, but nobody should budget around the grant alone. Treat it as a bonus on top of a purchase that has to stand up financially without it, and treat the duty exemptions in section six as the larger prize.

Who Qualifies

Eligibility is decided by the SRO against a fixed list of criteria, and every one of them must be met: per the SRO's understanding the FHOG page:

Age and applicants

Every applicant must be a natural person, at least 18 years old at settlement or completion. Companies and trusts cannot apply, which rules out buying the first home through a family trust structure.

Citizenship or residency

At least one applicant must be an Australian citizen or a permanent resident at the relevant time, so temporary residents are excluded from this payment entirely.

Property type

The home must be new, never sold, and never been leased out or used for short-term accommodation, or substantially renovated, or built to replace a demolished dwelling.

Value cap

The home must be worth up to $750,000. For off-the-plan contracts, the cap is measured on the contract price, which can work in the buyer's favour.

No prior ownership

Neither you nor a partner may have received a grant before, owned residential property in Australia before 1 July 2000, or owned and occupied one for six or more continuous months on or after that date.

Occupancy commitment

At least one applicant must live in the home as their principal place of residence for at least 12 months, starting within 12 months of settlement or completion of construction.
Keys being placed into an open hand above a model house

Which Properties It Covers

The quickest way to check a property type is against the table below, drawn from the SRO's eligibility rules:

Property Grant eligible? Notes
New house, townhouse, apartment or unit, never sold or occupied Yes Must not have been leased or used for short-stay accommodation
Substantially renovated home Yes The renovation must have created a new, as-new residence
Home built to replace a demolished one Yes Treats the rebuild as a new home
Off-the-plan purchase Yes The $750,000 cap applies to the contract price
Established (previously occupied) home No No grant at any price, though duty relief may still apply

Why The Rule Bites Here

This is the part a national page will not tell you: the grant only helps if eligible stock exists where you want to live, and in Barwon Heads the eligible stock is narrow.

The cap rules out most established stock

Barwon Heads is an established, tightly held coastal suburb. The housing stock is overwhelmingly detached houses, at 91.2 per cent of dwellings, and only 2.8 per cent are flats or apartments, according to the suburb facts for the area. Most resales here sit well above the $750,000 cap, so an established purchase in Barwon Heads will almost never attract the grant, regardless of the buyer's eligibility.

New stock is where the grant actually applies

The grant attaches to new homes, and new homes here are townhouses and infill builds rather than high-rise. The suburb has recorded 2,141 dwelling approvals over the last five years, placing its building activity around the 97th percentile in Victoria. New units and townhouses coming through in and around town are the realistic grant-eligible candidates.

The gap between eligible and desirable

An eligible new townhouse and a desirable established family home on a quiet street are two different purchases, and the price gap between them is real. Buyers should decide early whether the grant is worth redirecting their search toward new stock in Barwon Heads, Wallington or Connewarre, where land and newer builds sit closer to the cap.

What this means for your search

Practically, a grant-motivated search here means watching new developments, off-the-plan releases and house-and-land packages rather than the established market. Our first home buyer loans page covers how lending works alongside the grant, and a construction loan is the route if you are building rather than buying off the plan. Budget against the full price with no grant, and treat the $10,000 as upside.

How It Stacks With Duty Relief

The grant is the smaller of the two benefits available, and the interaction between the schemes is where genuine money sits. Duty relief is a separate scheme run by the SRO, with its own thresholds:

Full duty exemption

A first home buyer pays no land transfer duty at all on a home with a dutiable value up to $600,000, whether the home is new or established, or on vacant land intended to build a first home.

Sliding concession

Between $600,001 and $750,000, duty is reduced on a sliding scale, so the benefit tapers as the price rises toward the same cap the grant uses.

Both at once

A new home up to $600,000 can attract the $10,000 grant and pay no duty. Between $600,001 and $750,000, the grant still applies alongside reduced duty.

Established homes too

An established home never qualifies for the grant, but it can still receive the full duty exemption or concession if it sits under $750,000, which is worth knowing given Barwon Heads' established stock.

Own occupancy rules

Duty relief carries the same style of condition: at least one purchaser must live there as their principal place of residence for 12 continuous months, starting within 12 months of settlement.

Once only

The exemption or concession can be claimed once, and the prior-ownership bar mirrors the grant's, so check the rules before either applicant has ever held a home.

How it works

How To Apply And When Money Arrives

The application itself is not complicated, but the deadline is absolute and the paperwork is easier to assemble while the purchase is running. The SRO's FHOG page covers the mechanics.

  1. 1

    Choose your lodgement route

    Most buyers lodge through an approved agent, which in practice is the lender funding the purchase, because the application travels with the home loan. The alternative is applying directly with the SRO, which suits buyers whose transaction is already settled or who are not using a lender.

  2. 2

    Assemble the eligibility evidence

    Expect to evidence identity, citizenship or residency, the contract of sale, and details of every applicant and their partners. If any applicant or partner has previously owned property, the SRO will test that against the prior-ownership rules, so be upfront about it before lodging.

  3. 3

    Mind the deadline

    You have 12 months from settlement, or from completion of construction, to lodge the application. Missing that window forfeits the payment entirely, and there is no discretion to revive a late claim, so diary the date the day you settle.

  4. 4

    Wait for the transaction to complete

    The SRO does not publish fixed payment dates, and no page should promise you one. Payment is made once the eligible transaction completes, so for a construction build that means the money arrives after completion rather than during the build, and you should not plan your cash flow around it.

Worth knowing early

What Gets An Application Knocked Back

These are the failure modes the SRO sees, and every one of them is avoidable with a careful contract review before you sign:

  • Buying established by mistake The most common knock-back of all: buyers assume an older home qualifies. It does not, at any price point, and no amount of eligibility elsewhere rescues the application.
  • A "new" home that has been lived in A dwelling previously leased out or used as short-term accommodation fails the never-occupied test, even if it has never been sold.
  • Over the cap A contract price above $750,000 fails outright, and for off-the-plan purchases it is the contract price that counts.
  • Broken occupancy Not living there for the full 12 continuous months, or moving in later than 12 months after settlement or completion, triggers repayment.
  • Prior ownership or a prior grant If you or your partner has owned and occupied a home for six or more continuous months since mid-2000, or either of you has claimed a grant before, you are out.
  • Wrong applicant structure Applying as a company or a trust fails the natural-persons requirement, so restructure before you sign, not after.
  • Late lodgement Applications lodged more than 12 months after settlement or completion are simply refused.

Where we work

Areas We Service

Your Mortgage Broker Barwon Heads writes this page for Barwon Heads buyers, but the same grant rules apply across the Bellarine, and we arrange home lending throughout the district. Nearby we regularly work with buyers in Wallington and Connewarre, where new releases and larger blocks often sit closer to the $750,000 cap than established Barwon Heads stock does. You can read more about who you are dealing with on our About page.

Questions answered

Frequently Asked Questions

How much is the VIC First Home Owner Grant worth?

The grant pays $10,000 as a one-off payment for an eligible new home anywhere in Victoria. The old separate regional grant is a closed scheme, so the same statewide figure applies to Barwon Heads.

Can I get the grant on an established home?

No. The grant only applies to a new home that has never been sold or occupied, a substantially renovated home, or an off-the-plan purchase. Established homes qualify for no grant at any price.

What is the property price cap for the grant?

The home must be valued at up to $750,000. For off-the-plan purchases, the cap applies to the contract price rather than the final value.

Do I have to live in the property to keep the grant?

Yes. At least one applicant must move in as their principal place of residence within 12 months of settlement or completion, and stay for at least 12 continuous months.

Is the grant different from stamp duty relief?

Yes, they are separate schemes. The grant pays $10,000 on eligible new homes. Duty relief is a separate first home buyer exemption or concession with its own $600,000 and $750,000 thresholds.

How long does the grant take to arrive?

The SRO does not publish fixed payment dates. Payment is made once the eligible transaction completes, and you must apply within 12 months of settlement or completion of the build.


Mortgage broker for Barwon Heads and the suburbs around it

Get In Touch

If you are weighing a grant-eligible new build against an established purchase, a short conversation will map the numbers properly, including how the duty thresholds change what you can afford. Call Your Mortgage Broker Barwon Heads on (03) 9122 8522. As a credit assistance business operating under an Australian Credit Licence, we will tell you plainly where the grant applies and where it does not.

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