Can I use the First Home Owner Grant as my deposit?

It is one of the most useful questions a first home buyer can ask, because the grant can genuinely reduce what you need to save. The answer is that yes, it can usually go toward your deposit and costs, but there is an important catch around timing and the type of home, and getting that right is what makes it work smoothly.

The grant can go toward your deposit and costs

For an eligible first home buyer, the First Home Owner Grant can generally be applied toward your deposit and upfront costs. That lowers the amount you personally need to have saved, which can bring a purchase or build within reach sooner. So in practical terms, the grant is real help toward getting in the door.

The catch is timing

Here is where people get caught. The grant is not always available as cash at the very start. For a build, it is usually paid at a construction milestone, often around the slab stage, or on completion depending on the state, rather than upfront when you sign. For a newly built home you are buying, it is typically applied at settlement. So you cannot always rely on it being there for your initial deposit, and you need to plan your cash around when it actually lands.

New homes only

It is important to know that the grant generally applies to new homes, building a new home or buying a newly built one, not established homes. So it pairs naturally with building. If you are buying an established home you will not receive the grant, though you may still use low deposit options to get in with less.

It usually works alongside your savings

The grant is rarely your entire deposit on its own. In practice it works alongside your own savings and any low deposit option you qualify for. Think of it as a boost that reduces how much you need to save, rather than a complete substitute for a deposit.

How it is actually paid

The grant is commonly processed through your lender as part of your finance. For a build, your lender coordinates it at the relevant construction milestone, and for a new home purchase it is applied at settlement. Your broker or lender can confirm exactly how and when it will flow for your situation, so it lines up with your contract.

It varies by state

Each state and territory runs its own First Home Owner Grant, with its own amount, rules and timing. As at 2026 it is 15,000 dollars in South Australia, administered by RevenueSA, with other states setting different amounts and conditions. Because it varies and changes, confirm the current figure and timing with your state revenue office before you count on it.

Combine it with schemes

The grant does not work alone. Eligible buyers can often combine it with the federal Australian Government 5% Deposit Scheme, which lets you build or buy with a 5 per cent deposit and no LMI, and with state stamp duty concessions on new homes. These are separate from the grant and from each other, so the total help depends on your state and your situation.

What to confirm before you rely on it

Before you build the grant into your deposit plan, confirm three things: that you are eligible under your state current rules, the exact amount, and when it will actually be paid for your type of purchase or build. Getting that clear early turns the grant into a smooth boost rather than a timing scramble close to settlement.