Can you use the First Home Owner Grant as a deposit?
A first-home grant may help fund an eligible home, but you should not assume it will be available when your contract deposit is due. In Victoria and Queensland, payment timing depends on how you apply and whether you buy or build. Your lender must also confirm how it can be used.
If you are saving while renting, that timing can make a big difference. The useful question is: how much money do you need available at each step?
Three different things people call a deposit
Your contract deposit is the amount you agree to pay under the sale contract. The contract sets its due date, which may be well before settlement. Have your solicitor or conveyancer check the payment terms before you sign.
Your lender's required contribution is the amount you need to put towards the purchase alongside the home loan. The lender assesses your finances, the property and the source of your funds.
Your First Home Owner Grant is a separate government payment, subject to eligibility and payment rules. Approval for a grant does not mean the money is already available in your bank account.
Keep these amounts and dates separate when planning your purchase. ASIC's Moneysmart guide to buying a house explains the contract and settlement steps.
Using the grant towards a home in Victoria
In Victoria, if you need the grant available for settlement or your first progressive building payment, you must apply through an approved agent, usually a participating bank or credit union.
Ask that agent to confirm when the grant can be paid and what documents it needs. Do this before relying on the grant to meet a payment deadline.
If you apply directly to the State Revenue Office, you cannot lodge the application until the eligible transaction is complete. That route cannot provide grant money for an earlier contract deposit.
For example, if your contract requires a deposit before settlement and your approved agent expects the grant at settlement, you still need an agreed way to cover the earlier payment. This is a timing example, not a guarantee of eligibility or loan approval.
See Victoria's official application guidance and our Victoria first-home-buyer guide.
When the grant is paid in Queensland
Queensland Revenue Office advises buyers not to rely on the grant for their deposit because payment timing varies.
When you apply through a bank or lending institution, the usual payment stages are:
| Your purchase or build | Grant payment stage |
|---|---|
| Buying a new home, including an off-the-plan purchase | Settlement |
| Building under a building contract | First drawdown of loan funds |
| Building as an owner-builder | Receipt of the final inspection certificate |
When you apply directly to QRO, payment comes after the home is complete and the required supporting documents have been supplied. For a purchase, this includes evidence of registered ownership; for a build, the relevant completion evidence is required.
A house-and-land purchase may involve a land contract and a separate building contract. Confirm how each payment date fits with the grant's expected release.
Read QRO's payment guidance and our Queensland first-home-buyer guide for the wider eligibility picture.
Is the 5% Deposit Scheme the same as a grant?
No. The Australian Government 5% Deposit Scheme provides a guarantee to a participating lender. It does not pay cash into your account or provide your deposit.
Eligible first-home buyers may purchase with a minimum 5% deposit without lenders mortgage insurance under the scheme. Property price caps, eligibility rules and the lender's assessment still apply.
Ask the participating lender to confirm the savings and other funds you need, including how any state grant fits into your application. Do not assume grant approval satisfies the scheme's minimum deposit requirement.
A smaller deposit also means a larger loan than a bigger deposit on the same property, so consider the repayments as well as the upfront amount.
See the official scheme information and information guide.
Work out what you need before the grant arrives
Build a simple payment timeline with your lender and conveyancer. For each stage, write down the amount due, the due date and the confirmed source of funds.
Use these four headings:
- Before signing: contract advice, finance checks and any inspection costs.
- Contract payments: each deposit or other payment required under your agreements.
- Settlement or construction: your remaining contribution, fees and any duty payable, allowing for confirmed concessions.
- After moving in: repayments, insurance, rates, maintenance and a cash buffer.
ASIC's deposit savings guide explains why buying costs need to sit alongside the deposit in your budget.
For a build, our house-and-land guide also helps you compare the quote and identify questions about inclusions.
Do not count the same savings twice. Ask your conveyancer and lender to show how money already paid under the contract is reflected in the final amount required.
Our guide to the upfront costs of buying your first home includes a worksheet for listing each cost and how it will be funded.
Questions to ask before you commit
Take this checklist to your lender or mortgage broker, and your conveyancer:
- Am I eligible for the grant for this particular property and contract?
- Who will lodge the application, and what is still needed?
- At what stage is payment expected, and who receives it?
- What money must I provide before that date?
- What savings history or other evidence does the lender require?
- Have all purchase costs and building payments been included?
- What is the plan if the grant is delayed or the application is declined?
Get the answers for your own purchase before signing. A general estimate is a starting point; it is not confirmation that your funding is ready.
Take the next step towards your first home
Start with our first-home-buyer pathway to understand how Your Property Pathway helps coordinate the house-and-land journey.
We introduce buyers to builder partners and help organise the next steps. Home loan and credit assistance is provided separately by My Finance People. Your Property Pathway does not provide credit assistance.
This guide is general information, not personal financial, credit or legal advice. Confirm current requirements with the relevant authority, your lender and your legal adviser before committing.