First Home Owner Grant ACT: A Complete Guide for Canberra First Homebuyers in 2025

Buying your first home in Canberra can feel overwhelming, but the First Home Owner Grant ACT is here to help first-time buyers take their first step on the property ladder. This one-off payment, provided by the territory government, makes homeownership more affordable by reducing upfront costs. 

Expert mortgage brokers, such as the team at Home Loan Broker Canberra, can guide you through the entire process, from meeting eligibility criteria to submitting your application form. Their expertise ensures you don’t miss out on vital savings, such as the stamp duty concessions. 

If you’re ready, let’s explore everything you need to know about this grant and how to maximise it for your homeownership this 2025. 

What Is the First Home Owner Grant in ACT?

The First Home Owner Grant (FHOG) in the Australian Capital Territory (ACT) is a one-off payment designed to help eligible buyers purchase their first home. It applies to newly built properties, comprehensive home-building contracts, or some vacant land purchases.

This grant is essential for first-time buyers in Canberra, providing much-needed financial relief in a competitive housing market. It reduces upfront costs, helping buyers enter the property ladder sooner and with less stress.

How Does the First Home Owner Grant Work?

The First Home Owner Grant ACT helps eligible first-time buyers in Canberra offset the initial costs of buying or building a new home. 

Here’s a practical example to see how it works.

Sample Scenario:

Emma is a first-time buyer purchasing a new home in Canberra for $550,000. She qualifies for the First Home Owner Grant ACT and receives a one-off payment of $10,000.

Cost Breakdown:

• Purchase Price:  $550,000
• First Home Owner Grant:  -$10,000
• Net Purchase Price:  $540,000

Emma also qualifies for a stamp duty concession, saving her an additional $15,000. She takes out a loan from a lender with a 10% deposit of $54,000 and borrows $486,000.

Mortgage Details:

• Loan Amount:  $486,000
• Interest Rate (Comparison Rate):  5%
• Monthly Repayment (30 years):  Approx. $2,610

With the grant and stamp duty relief, Emma saves $25,000 upfront, making the overall cost of her property purchase much more manageable. Mortgage brokers can assist by identifying the right loan provider, ensuring eligibility requirements are met, and simplifying the application process for the First Home Owner Grant.

Who Is Eligible for the First Home Owner Grant in ACT?

The First Home Owner Grant ACT is designed to help first-time buyers, but not everyone qualifies. To ensure you’re eligible, it’s essential to meet specific criteria outlined by the territory government. Here’s a breakdown of who can apply for this grant in the ACT:

Eligibility Criteria

• First-Time Buyers Only:  Applicants must be first-time buyers who have never owned residential property in Australia, including investment properties.

• Australian Citizenship or Permanent Residency:  At least one applicant must be an Australian citizen or permanent resident at the time of applying.

• Residency Requirements:  The purchased property must be your primary residence, and you must live there for a continuous period of at least six months starting within 12 months of settlement or completion of construction.

• Eligible Property Types:  The grant applies to new-build properties, plan properties, or vacant land with a comprehensive home building contract. Established homes or investment properties are not eligible.

• Property Value Thresholds:  The property’s purchase price must not exceed the value limits set by the ACT government. These thresholds vary depending on property type and location.

• Other Requirements:  Applicants must submit a completed application form with all supporting documents, such as proof of identity, residency, and the contract of sale. Joint applications must meet the eligibility criteria for all applicants.

Understanding these requirements ensures that eligible buyers in Canberra can take full advantage of the grant and save on their property purchases.

How to Apply for the First Home Owner Grant in ACT

Applying for the First Home Owner Grant ACT is a clear process, but it’s important to follow each step carefully. From checking eligibility to receiving your grant, the entire process typically takes   4–6 weeks, depending on the accuracy of your application and documentation. 

Here are the steps you can follow to ensure a smooth application.

Step 1: Check Your Eligibility

Review the eligibility criteria set by the ACT government to ensure you qualify. This includes being a first-time buyer, meeting residency requirements, and purchasing a property within the property value thresholds. Expect this initial check to take about 1–2 days.

Step 2: Complete the Application Form

Fill out the First Home Owner Grant application form with all required details. Provide information about your personal details, property transaction, and eligibility requirements. Completing the form accurately may take 1–3 days, depending on the complexity of your application.

Step 3: Gather Supporting Documents

Collect all necessary documents, such as proof of identity, the contract of sale, and evidence of residency. If purchasing a new-build property or vacant land, additional documents like an inspection certificate or home-building contract will be required. Gathering these documents may take around 1 week, depending on availability.

Step 4: Submit Your Application

Lodge your completed application through an approved loan lender or directly with the ACT government. Ensure all supporting documents are included, as incomplete applications can delay the process. Submission and initial processing typically take 1–2 weeks.

Step 5: Wait for Approval

After submission, the ACT government reviews your application to verify eligibility. Approval can take approximately 2–3 weeks, depending on the volume of applications and whether all eligibility requirements are met.

Step 6: Receive Your Grant

Once approved, the one-off payment is provided based on the type of property. For established homes, the grant is paid at the time of settlement. For new-builds or vacant land, the grant is paid after the first progress payment or upon the completion of construction. This payment stage usually occurs within 2–4 weeks after approval.

Step 7: Benefit from Stamp Duty Concessions

If eligible, you can also apply for stamp duty concessions at the same time as the grant application. The concession reduces rates of stamp duty, potentially saving thousands on upfront costs. Approval and application for concessions typically align with the grant timeline, requiring no extra time.

From start to finish, applying for the First Home Owner Grant ACT can take around 4–6 weeks. With proper preparation, you can secure your grant on time and take advantage of additional savings like stamp duty relief, helping you move into your new home sooner.

Case Study: How Ben Used the First Home Owner Grant with a Fixed-Rate Home Loan

Ben, a first-time buyer in Canberra, purchased a newly built property valued at $600,000. He qualified for the First Home Owner Grant ACT, using the $10,000 one-off payment to boost his deposit.

In addition to the grant, Ben secured a fixed-rate home loan through his mortgage broker with a competitive 5-year fixed interest rate. This loan gave him the certainty of stable monthly repayments, helping him budget effectively as he settled into homeownership.

Ben also took advantage of a stamp duty concession, saving $16,500 in upfront costs. By combining the grant, a fixed-rate home loan, and stamp duty relief, Ben successfully entered the property market with confidence and reduced financial stress.

Tips for ACT First Home Buyers When Applying for the First Home Owner Grant

Applying for the First Home Owner Grant ACT can be overwhelming, but a few practical tips can help make the process smoother. Here are 7 essential tips for first-time buyers in Canberra:

• Check Eligibility Criteria Early:  Ensure you meet the eligibility requirements, including residency status, property type, and property value thresholds. This saves time and avoids disappointment later in the process.

• Gather Documents in Advance:  Prepare key documents like proof of identity, the contract of sale, and evidence of residency before starting your application. Missing documents can delay the process.

• Use a Mortgage Broker:  A mortgage broker can help you navigate the grant application process and secure additional benefits like stamp duty concessions. They ensure your application is accurate and complete.

• Know Your Property Requirements:  Verify that the property you’re purchasing meets grant conditions, such as being a new-build or eligible vacant land. Established homes and some investment properties are not eligible.

• Plan for the Timing of Payments:  Understand when the grant will be paid—either at the time of settlement or after the completion of construction. This helps you manage your cash flow during the buying process.

• Look Into Stamp Duty Relief:  Check if you qualify for stamp duty concessions to further reduce your upfront costs. Combining the grant and stamp duty relief can save you thousands.

• Be Accurate and Thorough:  Fill out the application form carefully and double-check all information. Errors or missing details can cause significant delays in processing your application.

With these tips, you can streamline your application and maximize the financial benefits of the First Home Owner Grant ACT. Proper preparation can help you step confidently into homeownership.

FAQs

What is the First Home Owner Grant ACT?

The FHOG is a national scheme providing eligible applicants in Canberra with a one-off grant for purchasing or building their first home.

Who can apply for FHOG in ACT?

Eligible homebuyers must be Australian citizens or permanent residents, meet residency requirements, and purchase properties within ACT’s property value thresholds.

Do first home buyers pay stamp duty in Canberra?

No, eligible first-time buyers may qualify for a stamp duty concession or complete exemption of property transfer duty under the Home Buyer Concession Scheme.

Who pays the first home owners grant?

The ACT territory government provides the FHOG, which is funded through government grants to support first-time buyers.

What is the Home Buyer Concession Scheme in the ACT?

This scheme offers stamp duty relief to eligible buyers, reducing or eliminating stamp duty costs on property transactions.

Can I use FHOG for vacant land?

Yes, but only if the land is for a comprehensive home building contract and meets the property price caps in the ACT.

How long does it take to receive the FHOG?

The grant is typically paid at the time of settlement or upon the completion of construction, depending on the property type.

How much can I get from the FHOG?

The First Home Owner Grant ACT provides a one-off payment of $10,000 for eligible buyers in Canberra. The exact amount depends on the territory government’s guidelines and property requirements.

Wrapping Up

The First Home Owner Grant ACT offers first-time buyers in Canberra a valuable opportunity to make homeownership more affordable in 2025. By understanding the eligibility criteria, application process, and additional benefits like stamp duty concessions, you can confidently take your first step onto the property ladder. 

For tailored advice and guidance, Home Loan Broker Canberra offers a free consultation to help you maximise your benefits. Click here to visit our website today or call (02) 6173 6397  to get started on your journey toward owning your dream home in Canberra!