Introducing the First Home Owners Grant to your clients

As a mortgage broker, your role in guiding first-time home buyers toward property ownership is important. One powerful tool at your disposal is the First Home Owners Grant. This is a government initiative that can help first-time buyers overcome the financial challenges of entering the property market. 

Want to know how you can use this grant to improve your services and aid your clients? 

In this article, Mortgage Professional Australia will cover everything you need to know about the First Home Owners Grant. We will talk about how it works and what your clients must do to apply for this grant. We will also guide you in learning the application process for your clients’ benefit. 

Keep reading to find out the benefits of this grant and more. 

Introduction to the First Home Owners Grant 

The First Home Owners Grant (FHOG) is a government-backed initiative that deals with helping first-time home buyers save enough money for a down payment. The cash grant is provided as a lump sum payment or a discount on the purchase price of a home. Aside from being non-taxable, your clients are not required to pay back any amount that they get from the FHOG. 

How much is the FHOG in Australia? 

The First Home Owner Grant is provided and managed by state and territory governments. This means that the amount your clients can receive will depend on where they would want to buy a home.  

While the amount varies by state, many offer around $10,000 for new home purchases. Plus, your clients can also qualify for stamp duty exemptions. 

As a mortgage broker, learning about this grant enables you to guide your clients through what might otherwise be an intimidating process. Know more about the FHOG when you watch this clip: 

 
We also have a guide for first-time home buyers who want to understand how the First Home Owners Grant works. Share this guide with your contacts and clients! 

Eligibility criteria for the First Home Owners Grant 

Eligibility for the FHOG is determined by several requirements. While the specifics can vary by location, there are common criteria that most programs share. When discussing eligibility with your clients, be sure to explain the following points: 

1. buyer status and legal requirements   
2. homeownership history  
3. claim and occupancy restrictions 

Let’s discuss them further below: 

1. Buyer status and legal requirements 

Your clients should prove that they are: 

• first-time home buyer applying as an individual; not as a trust or company 
• at least 18 years old 
• an Australian citizen or permanent resident, or applying with someone who is 

2. Homeownership history 

As for your clients’ homeownership history, they (or their spouse or partner) should not have lived in a property that they own from the 1st of July in 2000. They must also: 

• not have owned a home before the 1st of July in 2000 
• not have owned an interest in land that had a home on it before 1 July 2000 

Their spouse, partner, or co-buyer is also required to follow these criteria. 

3. Claim and occupancy restrictions 

Your clients should not have claimed the FHOG in another state if they want to apply for the cash grant. They should also prove that they are not applying with someone who has. 

As for the occupancy restriction, they must use the property as their principal place of residence within 12 months of construction or purchase. The grant requires a minimum continuous occupancy period of 12 months as well. 

Watch this video to know more about the FHOG’s eligibility criteria: 

Want to find out if your clients are eligible for other government housing schemes? Check out this article on First Home Guarantee for first-time home buyers. 

How to apply for the First Home Owners Grant 

Helping your clients navigate the application process for the First Home Owners Grant can set them up for success. Learn about the application steps and share them with your clients: 

Step 1: Research the grant details of the state 

Encourage your clients to review the specific details of the First Home Owners Grant program in their state. Provide them with reliable sources and local government websites where they can find updated information on the FHOG. 

And speaking of updates, are you in on the latest news in the Australian mortgage sector? Visit our Market Updates page to know more. 

Step 2: Gather required documentation 

Advise your clients to get all the required financial documents in advance. Usually, state authorities will ask for their: 

• recent pay slips or tax returns 
• bank statements showing savings 
• proof of identification (e.g., passport and driver’s licence) 

Step 3: Complete the application form 

Instruct your clients to fill out the online or paper application form with care. Review the completed form with them if needed, ensuring all information is accurate and complete. Your expertise can help catch errors that might otherwise delay the process. 

Step 4: Submit the required documents 

Verify if your clients have attached all the necessary documentation with their application. Advise them on whether the documents should be uploaded digitally or submitted as physical copies. Encourage them to keep copies of everything for their records. 

Step 5: Follow up on the application 

Inform your clients that processing times can vary from a few weeks to a couple of months. Suggest that they follow up periodically with the granting authority if they haven’t received an update within the expected timeframe. Your ongoing support can help keep the process on track. 

Step 6: Receive and apply the grant 

Once approved, your clients will receive the grant either as a direct deposit or as a discount applied to their mortgage. Help them understand the terms and conditions associated with using the grant funds. 

Tips for a successful application 

As a mortgage broker, you can boost your clients’ chances of a smooth and successful application for the First Home Owners Grant by sharing these best practices: 

• Start early: Advise your clients to begin the application process ahead of their planned home purchase. Early preparation allows time to gather documents and address any issues that might arise. 

• Double check eligibility: Before your clients proceed with the application, review the eligibility criteria thoroughly. If there’s any doubt, tell them as soon as possible. Clarify and explain the grant’s requirements to avoid confusion. 

• Organise financial records: Encourage your clients to maintain an organised account of their finances. A well-documented financial history can make the FHOG application process run smoothly. It will also help your clients avoid delays or rejection. 

• Maintain communication: After submitting the application, remind your clients to keep in regular contact with the grant authority. Conducting follow-ups can help address any outstanding issues quickly. 

Benefits of the First Home Owners Grant 

Want to know how this grant will benefit your clients? Here are some of the key advantages: 

Reduced financial stress 

Saving for a down payment can be one of the most stressful parts of buying a home. With the First Home Owners Grant, your clients can reduce the amount that they need to save. This eases financial pressure and allows them to enter the market sooner. 

Increased borrowing power 

With a larger down payment supported by the grant, your clients might be able to secure a larger mortgage or better interest rates. Mortgage lenders view applicants with a higher down payment as less risky, which can work to their advantage. 

Is the First Home Owners Grant doubled? 

In Queensland, the state government has doubled its cash grant from $15,000 to $30,000 until the 25th of June in 2025. However, the FHOG is not doubled nationwide. Other states might offer higher grant amounts under special conditions. 

Faster path to homeownership 

By lowering the initial cost, the First Home Owners Grant can shorten the timeline to homeownership for your clients. This means that they can stop renting sooner (if they are) and start building equity in their own home. 

Long-term financial perks 

This housing scheme will allow your clients to get started on a path that could lead to increased financial security over time. Once they own their first home using the money received from the grant, they can expect long-term financial advantages. For instance, their homes can have the potential for property value appreciation as years go by. 

Risks of the First Home Owners Grant 

While the First Home Owners Grant is a valuable resource, there are some potential risks that you should tell your clients before they apply: 

Misunderstanding the requirements 

To avoid misinterpreting the FHOG’s eligibility criteria, remind your clients to read the guidelines carefully. If needed, suggest that they speak with a financial adviser to confirm if they really qualify. 

Incomplete documentation 

A successful application depends on your clients’ complete documentation. Warn them that missing or outdated documents can delay their approval. 

You can also advise them to keep everything organised. Making sure that they have all the required documents before submitting their application will give them a better chance for approval. 

Relying solely on the grant 

Help your clients by assessing their financial situation. This can include: 

• savings 
• debt 
• income 
• future expenses 

The FHOG is an excellent boost, but solely depending on it can pose risks to your clients’ financial stability. You can ask them to consult a financial adviser for a more in-depth assessment of their finances. Offer to set up introductions with your financial adviser-contacts; this type of value-added service will strengthen ties with your clients. 

Overestimating the grant’s impact 

Tell your clients that while the cash grant is helpful, it may not cover all the costs associated with buying a home. Assist them in planning for additional expenses such as: 

• legal fees 
• inspections 
• closing fees 
• moving costs 

Taking advantage of the First Home Owners Grant 

As a mortgage broker, your guidance and support are both critical for your clients’ success. The First Home Owners Grant is a valuable resource that can make homeownership a reality for many first-time home buyers. Using what you know about this cash grant will help establish your brand as a capable mortgage broker. 

When you provide top-notch service for your prospects, you also build long-term relationships founded on trust and success. Eventually, this can lead to a number of satisfied clients. This makes it a win-win as you grow your network and expand your business. 

Do you have clients who have applied for the First Home Owners Grant? How did you help them? Feel free to share your own tips in the comments below.