Do I need to build a home to get the First Home Owners Grant? – Myth Busted!


To receive the First Home Owners Grant (FHOG) you must build a house (or townhouse) on some vacant land, or purchase a new apartment off-the-plan.

Disclaimer: Please note our website, including this article, is in no shape or form designed to replace the need to obtain professional advice from qualified experts. The content of article is general in nature and does not take into account your circumstances. FHOG rules vary from state to state (& territory). FHBA always recommend you speak to a licensed professional. Please visit our website’s Terms & Conditions for more information. To speak to a licensed Mortgage Broker please click here.

Hint: You may not have to build a property to receive the First Home Owners Grant – read on!

Myth Busted

While these options in this myth above are ways you can get the FHOG (providing you have met other eligibility criteria), they are not the only ways to receive the FHOG.

FHOG eligibility rules are different in every state and territory. One common FHOG eligibility rule is that a property must be considered ‘new’ (or in some cases, ‘substantially renovated’). Of course, the property must also fall under the relevant FHOG threshold and the person(s) acquiring the property must meet all other eligibility criteria. But what we want to focus on in this blog is the definition of ‘new’ and how this busts the common myth above.

The definition of new varies slightly from state-to-state, but in general terms a new home is considered to be a residential property that “no one has lived in before”. So in regard to this myth, constructing a new property or purchasing an apartment that hasn’t even been built yet (i.e. off-the-plan) certainly meets the definition of being new.

However, there are other alternative examples of new properties.

At FHBA we find that many first home buyers just don’t feel quite comfortable constructing a property or purchasing off-the-plan. While there are benefits in doing so, there are also risks that turn some first timers off entering the property market this way.

Now for the busting of the myth.

There is an option that we see many first home buyers not considering when entering the property market – buying a new home that is already constructed – and receive the FHOG. That’s right, you don’t have to construct a property in order to receive the FHOG. You may come across projects (houses, townhouses, apartments, etc) where construction is already completed but no one has yet lived in them and therefore, they meet the definition of being new for the purpose of obtaining the FHOG.

Entering the property market this way can be a method for receiving the FHOG while avoiding many of the risks associated with buying off-the-plan or constructing your own house.

Properties already constructed, like this one in Brisbane, can be eligible for the Grant

Where can I find these completed Grant properties? 

Whether you are looking for a recently constructed FHOG eligible house, townhouse or apartment, or you are looking to build a house, or even buy an apartment off-the-plan, FHBA can help.

At FHBA we understand that a first home is different for everyone (after all, everyone has different budgets and wants). FHBA New Homes is an exclusive, no-charge service for first home buyers that you can combine with our no-charge home loan service (FHBA Mortgages) to get the very best help as a first home buyer .

Plus, by utilising our leading first home buyer services you could receive the FHBA 50 Rebate*, a cash rebate for eligible FHBA clients on their first home purchase – just ask your FHBA Coach for details.

Here is how the process works:

  1. Make an enquiry
  2. Free Discovery Session with an FHBA Coach who can run through our services and answer any queries you may have
  3. Your FHBA Coach will assist you with your home loan needs, including determining your borrowing capacity, assisting you compare your home loan options and helping you apply for your home loan
  4. Your FHBA Coach will introduce you to the FHBA New Homes search service where your FHBA Coach, along with our new homes’ partners, will help you find your ideal first home
  5. You stay in control, choosing the loan you want and most importantly, the home you want!
  6. At the end of the process not only will you have purchased (and settled) but you could also receive the exclusive FHBA 50 Rebate*

*Eligibility conditions for the FHBA 50 Rebate apply – but don’t worry, the conditions are lower than the First Home Owners Grant.

To learn more and/or to get started book your free Discovery Session now.

Written By,

First Home Buyers Australia

Search a wide range of FHOG eligible properties on our website

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.