Buying your first home is exciting, but navigating the First Home Owner Grant (FHOG) can feel overwhelming. With so much conflicting information online, many first-time buyers miss out on this valuable financial assistance or make costly mistakes during the application process.
This comprehensive guide cuts through the confusion to give you clear, actionable information about FHOG eligibility, application processes, and how to maximise your benefits as a first home buyer.
We’ve addressed some of the common misconceptions that are often claimed about eligibility for the First Home Buyer’s Grant.
This is one of the most common misconceptions. The reality is more nuanced. You’re disqualified if you or your partner have owned residential property anywhere in Australia before, but this doesn’t include commercial property, overseas property, or inherited property that you never lived in (though specific circumstances matter).
This causes more FHOG rejections than any other factor. If you’re married, in a de facto relationship, or even just purchasing with a partner, both of your property ownership histories matter. Even if only one person is on the title, both partners must meet the “first home” criteria. Many couples assume that if one partner isn’t on the mortgage, their history doesn’t count – this is incorrect.
FHOG only applies to new homes. This means:
Established homes, regardless of age or condition, don’t qualify for FHOG.
In Western Australia, your new home must fall within these price limits:
Exceed these caps, and you’re automatically disqualified.
Grant amounts vary dramatically across Australia, ranging from $10,000 to $50,000 depending on your state and specific circumstances.
This variation is exactly why broker knowledge matters for interstate buyers. Rules, amounts, and eligibility criteria can change significantly when you cross state borders. Our brokers understand the specific requirements for every Australian state and territory.
Understanding the timeline is crucial for successful FHOG applications:
Learning from others’ mistakes can save you thousands of dollars and weeks of delays:
The 100-point ID system trips up many applicants. You need specific combinations of documents, and photocopies must be certified. Missing or incorrect documentation is the leading cause of application delays.
Even if your partner isn’t on the property title or mortgage, their information must be included in your FHOG application. Failing to declare a partner or providing incomplete partner details leads to automatic rejection.
Applying too late is surprisingly common. The 12-month deadline from settlement is non-negotiable. Mark your calendar and start the process well before the deadline.
Established homes simply don’t qualify, regardless of their condition or how “new” they might seem. If the home has been previously occupied as a residence, it’s not eligible for FHOG.
Many buyers assume they must choose between FHOG and other first home buyer benefits. This isn’t always true – several programs can work together.
Professional broker guidance prevents these costly errors. Our experienced team has guided thousands of first home buyers through successful FHOG applications, avoiding the pitfalls that catch many DIY applicants.
Understanding FHOG eligibility is just the beginning. The real value comes from integrating this knowledge into your overall home buying strategy.
FHOG isn’t your only option as a first home buyer. Several programs can work together to maximise your benefits.
These serve different purposes and can be used together:
Most states offer stamp duty relief for first home buyers, which works alongside FHOG. In Western Australia, you might qualify for both full FHOG and stamp duty exemptions or concessions.
Western Australian first home buyers can access an additional $2,000 through the Home Buyers Assistance Account, which can be used alongside your FHOG entitlement.
The First Home Super Saver Scheme allows you to save for your deposit using your superannuation. This federal program works independently of state-based FHOG schemes and can provide additional funds for your purchase.
The complexity of combining multiple programs highlights why professional guidance matters. Each program has different eligibility criteria, application processes, and timing requirements.
Every first home buyer’s situation is unique. While this guide provides the foundation, your specific circumstances – income, deposit, chosen property type, and state location – all influence your optimal strategy.
Our experienced mortgage brokers don’t just understand FHOG rules for every Australian state; they know how to integrate these benefits into your complete home buying plan. From pre-approval to settlement and beyond, we’re here to ensure you access every benefit you’re entitled to while avoiding the common pitfalls that catch many first-time buyers.
Contact Loan Monster today to discuss your FHOG eligibility and develop a personalised strategy for your first home purchase. Because when it comes to navigating first home buyer benefits, experience makes all the difference.
Let’s get you on the road to first home ownership. All it takes is a quick chat to see what we could do for you and then we can set up a meeting. Our team is in Perth and Fremantle, so we can always grab a coffee with you nearby.
Contact us online and we’ll get back to you within 24 hours, even on weekends. You won’t get a hard sell or constant follow up contact from us. We’re here for you only if you need us. It’s as simple as that.
