What is First Home Owners Grant (FHOG)?

The First Home Owner Grant (FHOG) was introduced in 2000 to partly offset the effect of the Goods and Services Tax (GST) on buying or building a home. It’s a one-off payment for eligible first home buyers who buy or build a residential property in which they live. 

How does it work?

The FHOG is a national scheme funded and administered by each of the states and territories under their own legislation. It’s not means tested, which means your eligibility isn’t subject to financial considerations such as your income.

The grant amount, eligibility criteria and payment details of FHOG vary between states and territories, so it’s important to check with your Home Lending Specialist when you apply for a home loan

You may be eligible for the FHOG if, as well as being a first home buyer, you also:

  • Are a permanent resident or citizen of Australia
  • Have never before received the grant or owned residential property
  • Are the minimum age set by your state or territory’s scheme (usually 18)
  • Are buying a new or established home as an individual (not as a company or trust)
  • Will live in the residence for the minimum time determined by your state or territory (the grant is not available for investment properties)
  • Apply for the grant within 12 months of settlement

The grant is usually paid to your home lender at the time of settlement and applied directly to your home loan. If you’re building a home, the grant will be approved when your first loan repayment is due.

Some state and territories have additional grants or discounts for first home buyers who buy or build a home, especially in regional areas. 

4-year introductory variable rate (for first home buyers)

After the 4-year introductory period, your interest rate and repayments may increase as a lower discount applies for the remaining loan term.

  • 0.76% p.a. discount for 4 years for owner occupiers
  • 0.81% p.a. discount for 4 years for investors
  • Only available for first home buyers in Australia3
  • Interest Only payments available for up to 5 years for Owner Occupied Home Loans and up to 10 years for Investment Home Loans1

Download the Extra Home Loan fact sheet (PDF)

Owner Occupied interest rates

Compare home loans
   
Variable interest rate
Comparison rate
4-year introductory variable rate (with introductory discount margin offer)
3.02% p.a.
3.47% p.a.
Ongoing variable rate (with ongoing discount margin)
3.68% p.a.
3.47% p.a.

The rates shown are for Principal and Interest repayments.2

Comparison rate warning

See all home loan interest rates

Investment interest rates

Compare home loans
     
Variable interest rate
Comparison rate
4-year introductory variable rate (with introductory discount margin offer)
3.32% p.a.
3.81% p.a.
Ongoing variable rate (with ongoing discount margin)
4.03% p.a.
3.81% p.a.

The rates shown are for Principal and Interest repayments.2

Comparison rate warning

See all home loan interest rates

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Other assistance

First Home Loan Deposit Scheme

We're proud to be working alongside the Australian government to help more first home buyers realise their property ownership goals sooner. 

Discover the Scheme

The First home super saver scheme

The First home super saver scheme allows you to save money for your first home using your superannuation fund. This scheme, run by the Australian Taxation Office (ATO), helps first home buyers save faster by allowing them to withdraw voluntary super contributions they’ve made to their super.

For more information, visit the ATO website.

Stamp duty concessions

Stamp duty is a tax levied by state or territory governments on certain purchases, including buying a home, land, or investment property. Depending on your state or territory, you may be eligible for concessions as a first home buyer – check with your local revenue office.

In NSW from 1 August 2020 and for a 12-month period, the threshold above which stamp duty is charged on new homes for first home buyers increased from $650,000 to $800,000, with the concession reduced on higher values before phasing out at $1 million. The stamp duty threshold on vacant land rose from $350,000 to $400,000 and phases out at $500,000. Note: these threshold changes only apply to newly built homes and vacant land in NSW.

Things you should know

1 You can choose to pay Principal and Interest weekly, fortnightly, or monthly. Only monthly payments are available for Interest Only. The maximum Interest Only payment period over the life of a loan is 10 years for Investment Home Loans and 5 years for Owner Occupied Home Loans, so long as there is at least 5 years remaining on the Contracted Loan Term. We have different rates that apply, depending on whether you are making Interest Only payments or Principal and Interest repayments. During an Interest Only period, your Interest Only payments won't reduce your loan balance unless you choose to make additional repayments. At the end of an Interest Only period, your repayments will increase to cover Principal and Interest components.

2 The rates shown are interest rates for Principal and Interest repayments. For all our rates including interest rates for Interest Only payments view our Home Loan Interest Rates.

3 Only available for first home buyers in Australia where none of the applicants have previously owned or currently hold an interest in a property anywhere in Australia.

Extra Home Loan – introductory variable rate provides a discounted margin off the Extra Home Loan reference rate available at the time loan documents are issued. At the end of the introductory rate period, a reduced discount applies for the remaining life of the loan which will result in the Interest Rate and repayments increasing at that time. As at 25 September 2020 Extra Home Loan reference rate for Owner Occupied home loans is 3.78% p.a. and the current Extra Home Loan reference rate for Investment home loans is 4.13% p.a. 

Comparison rate calculated on a $150,000 secured loan over a 25-year term. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

As this advice has been prepared without considering your objectives, financial situation or needs, you should consider its appropriateness to your circumstances before acting on the advice. You should also read our Financial Services Guide.