What is the First Home Owner Grant in TAS?
The First Home Owner Grant (FHOG) is a one-off, tax-free grant available to eligible first-home buyers in Tasmania. It can help first-time home owners cover some of the hefty costs associated with buying a property, but specific limits and eligibility criteria apply.
How much is the First Home Owner Grant in TAS?
The First Home Owner Grant in Tasmania is $10,000 for eligible first-home buyers to buy or build a new home. It’s on par with FHOG grants in WA, NSW, VIC and the NT.
Properties eligible under the program include:
- A new house, unit, townhouse or duplex (including off-the-plan)
- Kit homes
TAS First Home Owner Grant eligibility criteria
- Applicants must be 18+ years of age
- You must be an Australian citizen or permanent resident (or applying with someone who is)
- You must be a first-home buyer who has not owned a property or received the grant previously
- You must be buying or building a new home in Tasmania
- You must move into your new property within a year of buying and live there for at least 6 months
- The grant is not available to property investors, or properties purchased through a trust or company
Is the TAS First Home Owner Grant available if you’ve previously owned an investment property?
According to the State Revenue Office of Tasmania, you may not be eligible for the FHOG if you’ve owned or partly owned an investment property, even before 1 July 2000, (when the FHOG was introduced).
TAS FHOG savings analysis on a $600,000 home loan
Loan amount | |
With $10,000 TAS FHOG | $600,000 (reduced to $590,000) |
Without TAS FHOG | $600,000 |
Interest rate | |
With $10,000 TAS FHOG | 6.00% p.a. |
Without TAS FHOG | 6.00% p.a. |
Monthly repayments | |
With $10,000 TAS FHOG | $3,537.35 (save $59.95) |
Without TAS FHOG | $3,597.30 |
Total to repay | |
With $10,000 TAS FHOG | $1,273,445 (save $21,584) |
Without TAS FHOG | $1,295,029 |
Total interest payable | |
With $10,000 TAS FHOG | $683,445 (save $11,584) |
Without TAS FHOG | $695,029 |
| With $10,000 TAS FHOG | Without TAS FHOG | |
|---|---|---|
Loan amount | $600,000 (reduced to $590,000) | $600,000 |
Interest rate | 6.00% p.a. | 6.00% p.a. |
Monthly repayments | $3,537.35 (save $59.95) | $3,597.30 |
Total to repay | $1,273,445 (save $21,584) | $1,295,029 |
Total interest payable | $683,445 (save $11,584) | $695,029 |
See First Home Owner Grants in each state & territory
Do you need to show genuine savings when using a grant?
Mansour Soltani , Money's home loan expert
“Lenders generally expect borrowers to show genuine savings, equivalent to a minimum of 5% of the home loan amount, in addition to any grants they intend to use. Lenders will ask for three months of bank statements to evaluate your savings history and living expenses. Some lenders may consider rental payments as genuine savings if you can provide a rental ledger.”
Mansour Soltani , Money's home loan expert
How to apply for the TAS First Home Owner Grant
You can apply for the First Home Owner Grant through your lender (who will also manage the application) or directly with the State Revenue Office of Tasmania.
If you apply via your lender
Complete the First Home Owner Grant application form and submit it to your lender with the supporting documents of the property purchase. You’ll also be asked to provide 100 points of Australian or state-issued documents that the lender can use for your home loan application. The lender will lodge your FHOG application on your behalf.
If you’re approved for the FHOG, you’ll usually receive the payment at settlement if you’re buying a newly-established home or at the first drawdown of funds if you’re building a new home.
If you apply via the State Revenue Office
You can lodge your grant application via the First Home Owner Grant Portal on the State Revenue Office’s website. The application will be processed within 14 days of lodgement if you’ve provided all the information and documentation required.
If you’re approved for the FHOG and are buying a new home, you’ll receive payment when your name is registered on the property title. If you’re building a new home, the grant is typically paid after the foundations have been laid.
How to fill out the TAS First Home Owner Grant application form
1
Complete the eligibility checklist
Verify your eligibility for the First Home Owner Grant. Tick the relevant box for questions 1 to 7.
2
Enter your personal details
Each applicant must fill out their personal information and contact details. If you’re applying with a spouse, they must enter their details in the ‘Applicant 2’ section. There’s a separate section for spouses not party to the grant application further down.
3
Provide your property and transaction details
Enter the details of the property you’re buying, including the street address or a lot number if a street number is not allocated (e.g. new housing estates or developments). You’ll also be asked to include transaction details, such as your settlement date for a new home, a contract of sale or a contract to build date.
4
Provide your bank account details
If you’re applying directly through the State Revenue Office, you will need to nominate the bank account you’d like the grant paid into. If you’re applying through your lender, the grant will be paid to them in accordance with your agreement.
5
Sign the declaration
Each applicant must agree to and sign the declaration to confirm that all information provided is true and correct, and that they’ve read and understood all the details completed on the application form.
Other support for first-home buyers in TAS
Home Guarantee Scheme
The First Home Guarantee (FHBG) is a nationwide program that helps eligible first-home buyers purchase a property with a deposit as low as 5%, including in regional areas under the Regional First Home Buyer Guarantee (RFHBG). Housing Australia guarantees up to 15% of the value of a first home, meaning you’d avoid lender’s mortgage insurance (LMI).
In Tasmania, the FHGB price cap is $600,000 for homes in capital cities and regional centres and $450,000 for the rest of the state.
There’s also the Family Home Guarantee (FHG) to help eligible single parents or guardians buy a property with a deposit as low as 2%, with Housing Australia guaranteeing up to 18% of the property’s value.
Can you combine the TAS first-home buyer grant and First Home Guarantee?
Yes, it’s possible to use both the $10,000 TAS first-home buyer grant and (FHBG) if you qualify, according to Housing Australia.
However, the FHOG is typically available only at settlement (i.e. after the completion of your property transaction), so it can’t directly be put towards the minimum 5% deposit for the FHBG.
Can you use the TAS First Home Owner Grant as part of your home loan deposit?
Mortgage brokers we spoke to said in certain situations lenders might consider including your FHOG as part of your deposit, most commonly with off-the-plan property transactions.
Even if a lender does not accept FHOG funds as part of your deposit, being eligible for it may still help you when applying for a loan. For example, lenders may factor in the one-time payment when assessing your borrowing capacity, pending grant approval, according to ANZ.
First-home buyer TAS stamp duty exemption
Since June 2024, first-home buyers of properties valued below $750,000 may be eligible for a full exemption on stamp duty in Tasmania. This applies to existing houses, units and apartments. Stamp duty exemptions may also apply to property transfers between current or former spouses and to transfers of farming land to family members or relatives.
