Your quick guide to applying for and availing First Home Owner Grants (FHOGs)

Buying or building a home for yourself is a dream that is special to almost every one of us. But in the current real estate condition, it may seem like a distant dream to accomplish. On the bright side, the Australian government has done a lot of work in order to make your dreams realizable by making available First Home Owner Grants for first time home buyers.

Ozweb Finance is a Mortgage Broker in Richmond NSW that could be just the help you have been looking for to avail your first home buyer loan or apply for the First Home Owners Grant. Let us understand more about the grant and how its eligibility criteria and application procedures differ across different states in Australia.

What is the First Home Owners Grant (FHOG)?

The First Home Owners Grant (FHOG) scheme was introduced on 1 July 2000 to counterbalance the effect of the GST on home ownership. It is a national scheme that is funded by the states and territories and administered under their own legislation. Under this scheme, a one-off grant or one-time lump sum amount is made available to first home owners that satisfy all the eligibility criteria of the First Home Owners Grant.

How does the First Home Owners Grant work for first home buyers?

The First Home Owner Grant (FHOG) has consistently changed over the years and differs in terms of eligibility and concessions across states and territories. In a recent development, this home buyer grant is now aimed mainly at newly built homes. The First Home Owner Grant (FHOG) may be worth anywhere between $10,000 and $15,000 in most cases. Over the years, the FHOG has evolved into an economic stimulus tool mainly because it enables housing affordability and has changed often to facilitate greater accessibility to housing facilities.

The First Home Owners Grant attributes including eligibility criteria vary depending on which state or territory the home is intended to be bought in. The FHOG is essentially a national scheme but it is funded by the states and territories and administered by each of them individually. Hence, each state or territory sets and changes its own FHOG rules pretty much every year.

Find out more from your home loan provider or mortgage broker. Ozweb Finance is a Mortgage broker in NSW and provides help with availing the First Home Grant in NSW.

What are the general eligibility criteria for FHOG?

Although each state and territory has its unique rules, but the following criteria are generally considered while deciding eligibility:

 

  • The FHOG is available only to first home buyers. This means that you or your spouse should not own another property in Australia.
  • This grant can be availed only once
  • Being an Australian citizen or permanent resident (may vary by state or territory) is a must.
  • This grant is only approved for real people not to organizations or trusts.
  • Minimum residential period of six months in the house once it’s built
  • Most states and territories have a minimum age requirement (usually 18)
  • Maximum purchase price is between $575,000 and $750,000 (depending on state or territory)
  • In general across states and territories, the property must be either new or ‘substantially renovated’

First Home Owner Grant Information by state or territory

Financing your first home and saving up for it may seem like a really daunting task. But the various state and territory governments across Australia offer financial support to help you buy the house of your dreams with ease.

Australian Capital Territory- First Home Owner Grant ACT

Maximum Granted Amount: upto $7,000

The First Home Owner Grant in Australian Capital Territory (ACT) permits eligible people to buy their first new or substantially renovated home — valued up to $750,000 — up to $7,000.

Stamp Duty Concessions Granted

Some concessions have been made available on stamp duty, which are mainly related to income thresholds and number of dependents.

 The First Home Owner Grant in ACT has now been replaced by the Home Buyer Concession Scheme, which offers concessions on stamp duty.

Eligibility for Concession

  • Home owners under a certain income threshold who have not owned any other property in the last two years
  • Plan on living in the home continuously for at least one year within 12 months of the settlement date

Will be eligible to pay no duty or reduced duty on their home purchase.

Find the latest first home owner information on the Revenue ACT website.

New South Wales- First Home Owner Grant NSW

Maximum Amount Granted: $10,000

The First Home Owner Grant (New Home) is worth $10,000 for first home buyers who buy or build a new home or a substantially renovated house between $600,000 and $750,000.

Eligibility Criteria for First Home Grant NSW

  • The applicant must be buying or building their first new home, which no one has lived in before and has a value less than $750,000
  • Must be purchasing a new home or a significantly renovated home which has a total value less than $600,000
  • Must be an Australian citizen or permanent resident of at least 18 years old.
  • The applicant must never have previously owned property in Australia
  • Must be an individual not a company or trust
  • At least one applicant must reside in the property for at least six continuous months with the 12 month completion of the transaction as their main place of residence. (Australian Defence Force members and NSW electoral roll are exempt from this rule).

Stamp Duty Concessions

Under the NSW Government’s Affordability Package in 2017, first home buyers pay zero stamp duty for new or established first homes priced up to $650,000. There are other discounts on stamp duty for homes priced between $650,000 and $800,000.

Some additional concessions on stamp duty for properties under $1,000,000, are also granted while buyers are not required to pay any stamp duty at all on homes under $800,000. Depending on the initial property value, this can save First Home Buyers NSW an additional $30,000.

Find more information on the First Home Grants NSW page of Revenue NSW or contact mortgage brokers in Richmond NSW like Ozweb Finance to help you avail the grant.

Reach out to top mortgage brokers in Kellyville and mortgage brokers in BlackTown NSW for ease of grant approval.

Queensland- First Home Owner Grant Queensland

Maximum Amount Granted: $15,000

The First Home Owner Grant Queensland grants up to $15,000 if applicants are buying or building a new home costing less than $750,000.

Eligibility Criteria for First Home Grant Queensland

  • The applicant must be buying or building a new house, unit or townhouse, valued under $750,000
  • Must reside at the premises as principal place of residence for a minimum continuous six month period.
  • Neither the applicant nor their spouse must have owned a property in Australia before.

Stamp Duty Concessions

Stamp duty concessions are applicable on both new and established homes. The maximum concession of $8,750 applies to homes valued up to $504,999, falling to $875 for a home costing $549,999. First home buyers planning to buy land now and build later pay no duty on vacant land costing $400,000 or less.

Find the latest first home owner information on the First Home Owners Grant Queensland of the Government website.

South Australia- First Home Owner Grant SA

Maximum Amount Granted: $15,000

The First Home Owner Grant in South Australia is valued at up to $15,000 for new homes for properties valued up to $575,000 or less

Eligibility Criteria for First Home Grant

  • The applicant must be buying or building new homes valued up to $575,000
  • The property must be intended as the principal place of residence for at least 6 months within a year of settlement.

Find the more information on First Home Owner Grant SA on the Revenue SA website

Tasmania- First Home Owner Grant TAS

Maximum Amount Granted: $30,000

First home buyers in Tasmania can access a $20,000 to $30,000 First Home Owner Grant between 1 July 2016 and 30 June 2022.

Eligibility Criteria for First Home Grant

  • The applicant must build or buy a new home valued up to $500,000
  • Construction must be completed within 24 months of the start date

Stamp Duty Concessions

Under the First Home Owner Duty Concession, first home buyers who purchase an established property may be eligible for a duty concession of 50 per cent for homes with a value up to $500,000.

Find the latest first home owner information on First Home Owner Grant TAS page of Tasmania’s State Revenue Office website.

Victoria- First Home Owner Grant VIC

Maximum Amount Granted: $10,000

The First Home Owner Grant in Victoria is worth $10,000 when you buy or build a new home, rising to $20,000 for new homes valued up to $750,000, for contracts signed from 1 July 2017 to 30 June 2021.

Eligibility Criteria for First Home Grant

The applicant must be buying or building a new home in Victoria, valued up to $750k

Stamp Duty Concessions

Stamp duty is waived for first home buyers on homes worth up to $600,000. Discounts on duty are available on a sliding scale on first homes costing between $600,001 and $750,000.

Find the latest first home owner information on the First Home Owner Grant Victoria page of Victoria’s State Revenue Office website.

Western Australia- First Home Owner Grant WA

Maximum Amount Granted: $10,000

The First Home Owner Grant in WA is worth $10,000 for the purchase or construction of a new home worth up to $430,000 or purchase of a vacant land costing up to $300,000.

Eligibility Criteria for First Home Grant

  • The applicant must be buying or building a new or substantially renovated home
  • Neither the applicant nor their spouse must previously own property in Australia
  • A minimum residence period of six months from the date of settlement

Stamp Duty Concessions

Stamp duty concessions are available for first home buyers of properties valued up to $530,000. These amounts vary depending on the purchase price.

Find the latest First Home Owner Grant Western Australia information on the Western Australian Government website.

Northern Territory- First Home Owner Grant NT

Maximum Amount Granted: $10,000

The First Home Owner Grant in the NT is a $10,000 cash payment for eligible first home buyers of a new home.

Eligibility Criteria for First Home Grant

  • The home must be defined as new i.e. it has not been previously occupied or sold as a place of residence

Stamp Duty Concessions

Home buyers may be eligible for the BuildBonus grant and Territory Home Owner Discount.

Find the latest First Home Owner Grant NT information on the Northern Territory Government website.

How do I apply for a First Home Owner Grant?

To apply for the FHOG, you can:

Lodge the application yourself through your state or territory authority

OR

Ask your home loan provider to lodge the application for you.

When will the grant be paid?

Every state and territory in Australia has its own rules regarding the grant settlement. The general condition for the grant payment include:

  • Established home: The payment is made at the time of settlement
  • Contract to build: The grant is paid to the builder with the first progress payment.
  • Owner builder: The payment is made on receipt of the Certificate of Occupancy
  • New home: The payment is made at the time of settlement
  • Purchase off the plan: The payment is made at the time of settlement

We know that the home loan process is very difficult. OzWeb Finance provides handy tips in first home buying and availing First Home Owners Grant Richmond NSW. Connect with us to get more information on first home buyer loans and grants.