The First Home Owner Grant (FHOG) is a one-off payment from the Victorian Government to help eligible first home buyers get into the market. In 2025, the grant is worth $10,000 — but it only applies to new homes, and there are strict eligibility rules you need to understand before you apply.

What Is the First Home Owner Grant?

The FHOG is a government grant — not a loan — designed to help first home buyers with the cost of purchasing or building a new home. It's administered by the State Revenue Office of Victoria and paid directly to your lender at settlement (or at the first progress payment for a construction loan).

How Much Is the Grant?

In Victoria, the FHOG is $10,000 for eligible purchases. This is a flat amount regardless of the property price, as long as you meet the eligibility criteria.

Note: the grant is separate from stamp duty concessions. First home buyers in Victoria may also be eligible for stamp duty exemptions or reductions on properties up to $600,000 — these are assessed separately.

Who Is Eligible?

• You must be an Australian citizen or permanent resident
• You (and your co-purchasers) must be individuals, not a company or trust
• You must be at least 18 years old
• You or your spouse/partner must never have owned a residential property in Australia
• You must live in the property as your principal place of residence for a continuous period of at least 12 months, starting within 12 months of settlement

What Properties Qualify?

The FHOG only applies to new homes. This includes:

• A newly built home that has not been previously occupied or sold as a place of residence
• A home you are having built (off-the-plan or construction contract)
• A substantially renovated home (where the old dwelling has been completely replaced)

The grant does not apply to established homes. If you're buying an existing property, you won't be eligible for the FHOG — but you may still be eligible for stamp duty concessions.

Is There a Price Cap?

Yes. In Victoria, the FHOG applies to properties with a dutiable value (purchase price or contract price) of $750,000 or less for metropolitan Melbourne, and $750,000 for regional Victoria.

How Do You Apply?

You can apply through your lender when you apply for your home loan, or directly through the State Revenue Office of Victoria. Applying through your lender is usually the easiest path — we handle this for B3 Finance clients as part of the settlement process.

What About the First Home Guarantee?

The federal First Home Guarantee (formerly FHLDS) allows eligible buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). This is separate from the state FHOG, and you may be eligible for both. Places are limited each financial year, so timing matters.

Key Takeaways

• The Victorian FHOG is $10,000 for new homes only
• Property must be $750,000 or under
• You must live in the property for at least 12 months
• Established homes don't qualify for the FHOG, but may qualify for stamp duty savings
• You can apply through your lender — we handle this for our clients

Most Australians stay in their home loan far longer than they should. Lenders rely on this — they reserve their sharpest rates for new customers, while loyal borrowers quietly pay a "loyalty tax" worth thousands of dollars a year. Here are five signs it's time to act.

1. You're on Your Lender's Standard Variable Rate

If your fixed rate period has ended and your loan rolled to the standard variable rate (SVR), you're almost certainly paying too much. SVRs are rarely competitive. Compare your current rate against what's available in the market — even a 0.5% reduction on a $500,000 loan saves roughly $2,500 per year.

2. Your Fixed Rate Is About to Expire

A fixed-rate expiry is the perfect time to review your options. Rather than letting your loan roll to whatever your lender offers, use this as an opportunity to compare the full market. Many borrowers who fixed during low-rate periods are now finding much better deals by refinancing rather than refixing with the same lender.

3. Your Property Has Gone Up in Value

If your property has increased in value since you bought it, your loan-to-value ratio (LVR) may have improved significantly. A lower LVR often unlocks better rates and can eliminate the need for ongoing Lenders Mortgage Insurance (LMI). Some lenders also allow you to access equity for renovations, investment, or other purposes through refinancing.

4. Your Financial Situation Has Changed

Got a pay rise? Changed jobs? Started a business? Your borrowing capacity and the products available to you may have changed since you first took out your loan. Refinancing is a chance to restructure — set up an offset account, split your loan, or adjust your repayment strategy to suit where you are now.

5. You're Paying High Fees or a Rate That's Hard to Justify

If your current loan has high annual fees, few features, or a rate that's difficult to defend against what's in the market, that's a clear signal. The cost to refinance (discharge fees, application fees, potential break costs) is often recovered within a year through interest savings.

How Much Could You Save?

On a $600,000 loan, dropping your rate by 0.5% saves approximately $3,000 per year in interest. Over five years, that's $15,000 — and that's a conservative estimate. Use our loan calculator to run your own numbers.

Is There a Catch?

Refinancing involves some costs — usually a discharge fee from your current lender ($150–$400), potential application fees, and government fees for the new mortgage registration. We'll calculate the break-even point for you, so you know exactly when you'll be in front.

Being self-employed makes the home loan process different — but not harder, if you know what to expect. The key is understanding what lenders are looking for and presenting your income in the right way. Here's what you need to know.

Why Is It Different for Self-Employed Borrowers?

Lenders assess serviceability — your ability to repay the loan — based on income. For PAYG employees, this is straightforward: payslips and a group certificate. For self-employed borrowers, income can be more complex, variable, and harder to document. Lenders want to see stability and enough income to comfortably cover repayments.

What Documents Will You Need?

For most self-employed loans, lenders will ask for:

• 2 years of personal tax returns (lodged and ATO-assessed)
• 2 years of business tax returns (if you operate through a company or trust)
• 2 years of business financial statements (profit & loss, balance sheet)
• Your ABN — usually registered for at least 2 years
• Notice of Assessment (NOA) from the ATO for each year
• Business bank statements (3–6 months)

What If I Haven't Been Self-Employed for 2 Years?

Some lenders will consider applications from borrowers who have been self-employed for less than 2 years — particularly if you were previously employed in the same industry. There are also specialist lenders who offer Low Doc loans, where you can self-certify income with fewer documents. These typically come with slightly higher rates but can be a good short-term solution.

How Do Lenders Calculate Your Income?

Most lenders will look at your taxable income (what's on your tax return) and may add back certain non-cash deductions like depreciation. They'll typically average your income over 2 years, which means a strong recent year alone isn't always enough.

If your income has been growing, we'll look for lenders who weight the most recent year more heavily — or who allow us to use a higher income figure based on your business's trajectory.

What About Low Doc Loans?

Low Doc (low documentation) loans are designed for self-employed borrowers who can't provide full financials. You self-certify your income with a declaration, supported by business bank statements or a letter from your accountant. Lenders offering these products typically require a lower LVR (e.g., max 80%) and charge a small rate premium — but they can be the difference between buying and waiting another year.

Tips to Strengthen Your Application

• Make sure your tax returns are lodged and ATO-assessed before you apply
• Avoid large unexplained withdrawals from your business account in the 3–6 months before applying
• Keep business and personal finances clearly separated
• Speak to your accountant before lodging — some legitimate deductions can reduce your assessable income more than you'd want
• Start the process early — self-employed applications can take slightly longer