FHOG Eligibility: Who Actually Qualifies in 2026?

FHOG eligibility is more restrictive than most first-time buyers assume. The 2024 reforms added income thresholds and property price caps that knocked many buyers out of the scheme entirely.

The current structure ties eligibility to how much you’re borrowing. If you’re borrowing under $400,000, your household income must be under $180,000 (individual) or $360,000 (couple). If you’re borrowing $400,000–$500,000, the thresholds drop to $150,000 (individual) or $300,000 (couple). If you’re borrowing over $500,000, you’re ineligible for the grant entirely.

A concrete scenario: you and your partner earn $190,000 combined and are buying a $550,000 apartment together. Your loan amount is $495,000. You’re ineligible because your income ($190,000 combined) exceeds the $180,000 individual threshold for that loan bracket—and as a couple applying together, you’re under the $300,000 couple threshold for loans over $400,000. The income logic here is confusing but intentional; the government is targeting lower-income buyers.

“First home buyer” is defined as someone who hasn’t owned property in Australia (or a spouse/de facto partner of such a person) within the past 12 months. If you owned a house in Melbourne that you sold 18 months ago, you’re ineligible. If you inherited a property from a parent, you’re ineligible. The definition is strict.

Property value caps exist. Most grants are available only on homes valued below certain thresholds (typically $600,000–$800,000 depending on the state). If you’re buying a $750,000 apartment in Sydney, state grants may not apply, though you might still access federal FHOG if income and loan size align.

“First new home” grants (available in some states) require the property to be newly constructed or purchased within 12 months of completion. A ten-year-old townhouse with a new kitchen doesn’t qualify. Only properties completed within the specified window qualify.

Co-ownership and relationship changes introduce complexity. If you buy as joint tenants with a friend (not a spouse), each of you may be eligible for separate grants, but lenders rarely approve mortgages on friendship-based co-ownership. If you’re in a de facto relationship for less than the required period (usually two years), you may not be recognized as a couple for grant purposes.

Self-employed borrowers need to be careful about income thresholds. If you’re declaring $140,000 net income but your accountant is comfortable certifying $160,000 based on upcoming contracts, you’re still over the threshold and ineligible. Income is assessed on documented evidence as it stands, not on potential.

Gifted deposits are treated differently depending on whether they’re truly gifts or loans in disguise. If a parent gifts you $100,000, it doesn’t reduce your borrowing need for FHOG assessment purposes. However, if you’ve borrowed $100,000 from a family member (even interest-free), that’s treated as a liability by mortgage lenders and changes your serviceability.

One common misconception: FHOG and state grants are mutually exclusive. They’re not. You can claim both, but state rules vary on sequencing and timing. Claim both wherever possible.

Disclaimer: This article provides general information only and should not be taken as financial or legal advice. FHOG eligibility, income thresholds, and state rules change regularly. Contact the relevant revenue office or your mortgage broker before applying.