The First Home Buyer Grant (FHBG) in Victoria is a state government initiative to help eligible first home buyers purchase or construct a new home. As of December 2025, it provides a $10,000 grant towards the purchase of a new home valued at $600,000 or less, or towards the construction of a new home with a total eligible construction cost of $750,000 or less.
Currently in Melbourne, particularly within the Eastern Suburbs that Fletchers specialises in, the FHBG impacts the market by influencing demand for newly built homes and house-and-land packages. Sellers of established properties should realise that buyers utilising the FHBG often have specific criteria – a preference for new builds or properties with renovation potential to meet the eligibility requirements. In 2026, we anticipate continued strong interest from first home buyers, especially in areas like Balwyn and Doncaster where family-friendly properties are highly sought after. It’s important to note that eligibility criteria, including income thresholds and residency requirements, are regularly reviewed. As of December 2025, the grant is not available for established homes; it’s specifically for new builds or substantial renovations. The State Revenue Office Victoria website provides the most up-to-date details. We often see buyers factoring this grant into their budget, potentially influencing their offer price.
The FHBG is a valuable contribution towards home ownership for eligible Victorians, and understanding its parameters is beneficial for both buyers and sellers in the current Melbourne property market.