Can you buy an investment property and still be eligible for the FHOG?

If you buy an investment property, are you still eligible for the First Home Owner Grant? Well, this depends on where you live.

Can you get an investment property and still get the FHOGThe First Home Owner Grant (FHOG) makes it easier for first-time homeowners to buy or build a home. Introduced in 2000, it was designed to counter the detrimental effect of the goods and services tax (GST) on buying or building a home.

The grant is offered as a lump-sum payment to first home buyers who buy or build a residential property and then live in it. The amount you receive from the FHOG and whether or not you are eligible for the grant varies between states and territories, but you can never receive a grant if you’ve already received one elsewhere in Australia.

The FHOG is only available for the purchase of owner-occupied properties, not investment properties. So if you decide to buy an investment property first and then later decide to buy your first home, will you still be eligible for the grant on the latter purchase?

To find the answer, you’ll need to look at the grant regulations specific to where you live.

For more information about eligibility for the First Home Owner Grant, contact the revenue office in your state or territory, and read our guide on the grant.

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3.99%
3.99%
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$0 p.a.
80%
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3.84%
3.91%
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3.94%
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$0
$0 p.a.
70%
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3.79%
3.82%
$0
$0 p.a.
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3.99%
4.13%
$0
$10 monthly ($120 p.a.)
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A competitive variable rate home loan with no application fee.
3.98%
5.01%
$0
$395 p.a.
90%
Fix the rate on your investment property for 2 years with this competitive home loan package.
3.74%
3.79%
$499
$0 p.a.
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Competitive variable investor mortgage to fund your property portfolio. You can add a 100% offset account for just $10 a month.
4.05%
4.22%
$0
$10 monthly ($120 p.a.)
90%
Lock in your interest rate on your investment property for 2 years. Earn Velocity Frequent Flyer Points.
4.03%
3.92%
$499
$0 p.a.
80%
A competitive 3 year investor rate with principal and interest repayments. Optional offset account with a $10 monthly fee.
3.91%
3.92%
$0
$0 p.a.
80%
Investors can go from application to approval in as little as 20 minutes with this innovative online lender.
3.98%
3.98%
$0
$0 p.a.
70%
Investors can get a 100% offset account and a low rate if they have a big deposit. 100% online application process.
3.99%
3.94%
$0
$0 p.a.
80%
Buy an investment property and enjoy the certainty of a 3-year fixed rate with interest-only payments.
4.09%
4.40%
$0
$0 p.a.
70%
Forget about rate rises for two years and minimise your investment repayments with this interest only mortgage. Requires a 30% deposit.
4.54%
4.59%
$600
$0 p.a.
80%
An investment loan for new Heritage Bank customers. Low fees and interest-only repayments.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
4.29%
5.33%
$0
$395 p.a.
90%
Lock in a competitive investment rate and combine your loan with a credit card and transaction account for extra savings. Package fee applies.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
4.29%
4.31%
$0
$0 p.a.
80%
Investors will pay no application or ongoing fees for this interest-only loan.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.89%
3.91%
$0
$0 p.a.
80%
Investors can go from application to full approval in as little as 20 minutes with this innovative online lender.
4.29%
4.31%
$0
$0 p.a.
80%
A simple, variable rate investor loan from an online lender that keeps fees to a minimum.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
4.90%
4.31%
$0
$0 p.a.
80%
Lock in a fixed rate for 5 years and make interest-only payments with this investment loan.
4.64%
5.39%
$0
$395 p.a.
90%
Pay off your investment knowing your exact repayments for the first 4 years. Get this loan with a 10% deposit.
3.99%
3.92%
$0
$0 p.a.
80%
A variable interest-only loan for investors. Fast application, low fees, optional offset account. 100% online lender.
4.29%
4.27%
$0
$198 p.a.
70%
Fund your property portfolio with this fixed rate mortgage which includes a 100% offset account. 30% deposit required.
3.89%
3.91%
$0
$0 p.a.
80%
Lock in your interest rate for 2 years and enjoy flexibility, an optional offset account and a fast online application process.

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48 Responses

  1. Default Gravatar
    HannahNovember 17, 2018

    I am looking to purchase my first house in Rural Victoria as an investment property and have renters ready to move in. I do not plan to move into this property.
    If I opt to pay stamp duty on this home, am I eligible to get the FHOG on a property later down the track?

    • finder Customer Care
      JoshuaDecember 4, 2018Staff

      Hi Hannah,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Typically, if purchase an investment property in Victoria on or after 1 July 2000 and you didn’t live in it for a period of six consecutive months, you may be eligible for the FHOG. It would also be a good idea to directly get in touch with the FHOG office and check other eligibility criteria and obtain more information.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    lynnOctober 12, 2018

    If I am granted a FHOG in Victoria and not able to move in right away after settlement, can I rent it out for 11 months or so? But will definitely move in to live as my principal home within the cut off of the 12 months deadline. Is this acceptable to the Victoria state government?

    I note the NSW and SA specifically allows renting out as long as one moves in within the deadline. But Vic government just keep silent and do not indicate one way or another.

    • finder Customer Care
      JeniOctober 13, 2018Staff

      Hi Lynn,

      Thank you for getting in touch with finder.

      As per Victoria’s State Revenue Office page, you (or at least one applicant) must occupy the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction. After the said period and you want to rent out your house, that will be fine. For further clarification on this, you may call the SRO help centre on 13 21 61 during their business hours from 8.30am-5pm (AEST), Monday to Friday, excluding public holidays.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

  3. Default Gravatar
    cjSeptember 12, 2018

    I have owned an investment property in NSW for 4years as it has only been an investment property and I have never lived in it. Am I still eligible for the first home owners grant in NSW if my new property is for me to live in as an owner occupier?

    • finder Customer Care
      JhezelynSeptember 14, 2018Staff

      Hello CJ,

      Thank you for your comment.

      Please note that the eligibility for FHOG may vary per state. The FHOG is only available for the purchase of owner-occupied properties, not investment properties. So, if you have owned an investment property before, you may still be eligible for the grant.

      You may want to check our guide to the First Home Owner Grant in NSW. To apply, please go through the NSW Office of State Revenue.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

  4. Default Gravatar
    HARISHMay 14, 2018

    Hi,

    We had purchased a property in 2012. We lived in for about 2 -3 years and then moved interstate. Since then we have been renting and have lease out the property. We have been paying investment property interest rates. My question is, If we are to buy another Owner occupied property, are we eligible for FHOG and Stamp duty exemption?

    Thanks

    • finder Customer Care
      NikkiMay 15, 2018Staff

      Hi Harish.

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      The amount you receive from the FHOG and whether or not you are eligible for the grant varies between states and territories, but you can never receive a grant if you’ve already received one elsewhere in Australia.

      For more information, you may view this page on state-by-state guide to the First Home Owners Grant.

      Hope this was helpful. Don’t hesitate to message us back if you have more questions.

      Cheers,
      Nikki

  5. Default Gravatar
    BBMay 1, 2018

    I am buying property cost $799k in Victoria and I would like to buy another property around $600k within 6 months. so, if i buy 2nd property in less than six months, i will eligible for FHOG and stamp duty exemption for 2nd property?

    • finder Customer Care
      JoshuaMay 3, 2018Staff

      Hi BB,

      Thanks for getting in touch with finder. I hope all is well for you today.

      Please understand that the FHOG is generally made for first-time home buyers. So, in your case, if you have already bought a residential property, then it is most likely that you won’t be eligible for FHOG. In terms of stamp duty, it also depends on where you reside or where you buy the property. The amount of stamp duty you pay is determined by the state or territory that you live in, the amount you pay for the home and the type of property that you are buying. Depending on your personal circumstances you may qualify for an exemption on stamp duty. You can go to this page to know more about stamp duty.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  6. Default Gravatar
    DaneApril 16, 2018

    Hi,

    I am wondering if I buy an investment property will I still be eligible for the FHOG at a later stage?

    Thank you,
    Dane.

    • finder Customer Care
      NikkiApril 16, 2018Staff

      Hi Dane,

      Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?

      The approval would depend on the place of your investment property. You can check and browse the states above if the location of your investment property grants FHOG.

      Hope this helps! Feel free to message us anytime should you have further questions.

      Cheers,
      Nikki

  7. Default Gravatar
    NatalieApril 14, 2018

    Hi there,

    I have met pretty much all requirements for the FHOG in Victoria, but was wondering whether something like buying from my parents would affect my eligibility? We plan to do everything the right way and follow process, but was just wondering if this would be cause for revocation of the FHOG at all.

    Thank you,

    Natalie

    • finder Customer Care
      MayApril 23, 2018Staff

      Hi Natalie,

      Thanks for getting in touch with finder.

      In Victoria, you can still acquire the FHOG benefits if you will buy an “established home” (of your parents). But you must strictly meet all the eligibility requirements. From the website of Victoria’s state revenue office, a “new home” includes:

      1. A newly built home,
      2. An existing property which is being sold for the first time as a new residential premises,
      3. A land and building package, or
      4. Vacant land on which you will build a new home

      You’d be best to contact your local government to confirm your eligibility.

      Cheers,
      May

  8. Default Gravatar
    JoshFebruary 21, 2018

    I live in Victoria and recently bought a home. Before I move in can I rent it out for say 6-10 months and then move in and still be entitled to FHOG?
    Because I’ve heard that I can buy a house (have a mortgage not investment loan), rent it out and as long as I move in within 12 months of settlement I will still be able to receive FHOG.

    • Default Gravatar
      AshMarch 3, 2018

      Hi Josh,

      Thank you for reaching out to us.

      Yes, you can still be eligible for the First Home Owner Grant (FHOG) in Victoria as long as you do not reside in the Investment Property for 6 consecutive months.

      After renting the property out, you must reside in it for 1 year and make it as your Primary Permanent Residence within 12 months that the house has been constructed.

      You may refer to this page for more detailed information regarding the FHOG per state.

      I hope this helps.

      Please do not hesitate to reach out to us again if you have additional questions.

      Cheers,
      Ash

  9. Default Gravatar
    rizOctober 30, 2017

    I have investment property in nsw& planning to sell that property & buy new property in nsw.
    so could u pls tel me I am eligible for first home garand / stamp duty benifite
    thank u

    • finder Customer Care
      JoanneOctober 30, 2017Staff

      Hi Riz,

      Thanks for reaching out.
      You may visit this guide to the First Home Owner Grant in NSW.
      Generally, this is the list of among other criteria that you need to satisfy in order to qualify:
      *Each applicant is a natural person (e.g. not a company)
      *At least one applicant is a permanent resident or an Australian citizen
      *Each applicant must be aged 18 years or older
      *All applicants have not owned a residential property in Australia before July 2000
      *All applicants have not previously owned a residential property for a continuous period of at least six months
      *All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory
      *At least one applicant will occupy the home as their principal place of residence for a continuous period of 6 months

      Furthermore, should you want to know if you’re eligible for the FHOG, please visit the NSW State Office of Revenue and review the eligibility requirements for the scheme you’d like to apply for.

      Cheers,
      Joanne

  10. Default Gravatar
    MelissaOctober 23, 2017

    I have an investment property in Victoria and now I wish to buy a principal place of residence price is $550,000. Can I get FHOG?

    • Default Gravatar
      ArnoldOctober 24, 2017

      Hi Melissa,

      Thanks for your inquiry

      The page above states

      Victoria’s State Revenue Office is responsible for offering the $10,000 grant to applicants buying or building their first new home. To be eligible for the grant, you must not have:

      – Received a First Home Owner Grant in Australia
      – Owned a home in Australia, either jointly or separately, prior to 1 July 2000
      – Occupied an Australian home in which either of you acquired a relevant interest on or after 1 July 2000 for at least six continuous months

      So if you purchased your investment property on or after 1 July 2000 and you didn’t live in it for a period of six consecutive months, you may be eligible for the FHOG. Please check the eligibility criteria for more information.

      Hope this information helps

      Cheers,
      Arnold

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