subscribe to our newsletter

Vic extends first home owner grant amid COVID-19 crisis

The Victorian government has announced that it is extending the First Home Owner Grant for an additional 12 months to support home buyers through the COVID-19 pandemic.

Victorian Treasurer Tim Pallas said the state government would be extending the $20,000 First Home Owner Grant (FHOG) for people buying or building a new home in regional Victoria for a further 12 months.

The regional grant, which had been due to end in June, will be extended until the middle of 2021.

According to Mr Pallas, the extension will provide certainty to the regional construction industry as the state deals with the economic impact of the coronavirus pandemic, while also providing Victorians the opportunity to live locally and enter the housing market for the first time.

“We know the coronavirus pandemic is making it even tougher for young people to achieve their dreams of home ownership – that’s why we’re extending the grant, which has helped so many regional Victorians,” Mr Pallas said.


The change will be included in legislation that the government is looking to pass in the emergency sitting of Parliament this week.

In 2017, the Labor government in Victoria doubled the regional FHOG from $10,000 to $20,000 to tackle housing affordability. Since then, more than 8,800 regional FHOGs have been provided, which have resulted in savings of $176 million for home buyers.

The regional grant is part of the government’s Homes for Victorians package, which also offers a $10,000 FHOG for eligible purchases in metropolitan Melbourne and offers stamp duty exemptions and discounts for new homes up to $750,000.

To be eligible for the grant, the purchaser or purchasers must be first home buyers buying or building a property valued at $750,000 or less, and it must be used as the principal place of residence for 12 continuous months following settlement.

The grant is available for first home purchases across 48 councils.


[Related: FHLDS allows for pre-approval extension amid COVID-19]

Vic extends first home owner grant amid COVID-19 crisis
First home buyers

Malavika Santhebennur

Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.

Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.

Latest News

The number of dwellings approved plunged in January but still remained well above last year’s level, according to ABS data. ...

Australians aged 22 and under (Gen Z) are the age group that is most interested in owning a home in future, even though two-fifths believe...

Teachers Mutual Bank Ltd has welcomed new directors to its board and bid farewell to John Kouimanos, who has retired from the board after...


Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.


LATEST PODCAST: Aggregation group changes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.