Australia’s First Home Buyers Grant
What is the First Home Owner Grant, and what government grants are currently available for first home buyers in your state or territory? You’re almost there! You’ve spent years budgeting to buy your own home and now you just need that final cash injection to break into the property market.
Pop quiz time, hands on your buzzers, first-timers. Do you: 1) Continue living off two-minute noodles for another five years and hoard your pennies? 2) Cash-in your grandpa’s beloved stamp collection? Or 3) Ask your mortgage and finance broker about this mystery thing they call the First Home Owner Grant (FHOG)? That’s right, Option 3 is the winning answer and the good news we have for you is that the First Home Owners Grant has recently increased in many states of Australia!
What is the First Home Owner Grant (FHOG)?
The FHOG is a national initiative designed to help young go-getters like yourself to swing a leg onto the property ladder. You can use the one-off grant as part of your deposit, or put it towards other purchasing costs. There are some major provisos: it must be used to buy or construct a brand new home that has not been previously occupied or sold, and it must be used as your place of residence. In some instances, substantially renovated properties that have undergone major structural changes may qualify.
Who is Eligible for First Home Owner Grant?
Naturally, the Australian Government isn’t going to give away money to everyone who asks for it. The eligibility conditions for the First Home Owners Grant (FHOG) are quite strict.
To be eligible for the FHOG, you or your spouse must:
- Intend to live in the home as your principal place of residence (PPR) for six to 12 continuous months, depending on the state or territory, within 12 months of settlement or completion of construction.
- Be aged 18 or over.
- Be an Australian Citizen or Permanent Resident.
You don’t qualify if you or your spouse have previously:
- Received a FHOG in Australia already.
- Owned a home in Australia, either jointly or separately, prior to July 1, 2000.
- Occupied, for a continuous period of at least six months, a home in which either of you acquired a relevant interest on or after July 1, 2000, in Australia.
- Depending on the state or territory in which you purchase your home, other conditions may apply. So please talk to us if you’re unsure if you’re eligible for the FHOG.
Could there be more good news?
Yes! The FHOG is currently under review, so it’s worth visiting your state’s office of revenue website from time to time to see what’s on offer. You may even want to consider moving interstate. How much you can get or save as a first home buyer, often depends on where you want to live.
It’s definitely worth checking out, because you may find you’re eligible for other big savings, like on stamp duty fees in some states. For example, from July 1, the Victorian Government is going to be scrapping stamp duty for first homebuyers for properties up to $600,000, with further discounts for new or existing homes between $600,000 and $750,000. Stamp duty is usually one of the biggest expenses if you’re buying a home, so this may make all the difference to your ability to climb onto the property ladder sooner rather than later.
What’s available around the nation?
The winner of the “most generous” award goes to the Northern Territory. Those wonderful peeps who call the Red Centre home are offering $26,000 to eligible first-home buyers, regardless of the value of the property. In Queensland, first home buyers can receive $20,000 until June 30 (then its $15,000) for properties valued up to $750,000. If you can live with the weather, Tasmania may be the place to buy, with no value cap and a $20,000 FHOG until June 30, when it reverts to $10,000.
In South Australia (SA) and Western Australia (WA), the FHOG is $15,000. In SA, the value cap is $575,000, while in WA, it depends on geographic location (for Perth, its $750,000). Victoria and NSW offer a $10,000 FHOG for new homes valued up to $750,000, but from July 1 the FHOG will double to $20,000 for new homes built in regional Victoria. Lastly, the ACT offer $7,000 for properties up to $750,000. (Data current March 2017).
Apply for First Home Buyer Grant, We’re here for you!
Talking to a Coronis mortgage broker about purchasing your first home is always a great idea. We’re happy to give you the benefit of our knowledge, even if you’re not quite ready to buy. You can ask us to help you create a budget, establish a plan to clear off your credit card and other debts, and save a deposit. When you’re ready, we are here to help you secure a loan and choose a home that you can realistically afford, given your income and personal financial circumstances. Get an expert on your side and get in touch with us today! Click here to book your free consultation.
Thanks to government efforts to accelerate home ownership and boost the homebuilding industry, first home buyers are now eligible for grants and subsidies. Each state and territory provides some sort of financial assistance to first home buyers. Here’s a basic overview of what’s on offer at the moment. Keep in mind, however, that this information can change.
First Home Owner Grant Queensland
The Queensland First Home Owner’s Grant of $20,000 is available to people buying or building a new home up to the value of $750,000. All grant applicants must live in the home continuously for at least six months.
First home buyers can also claim a first home exemption on transfer duty for homes valued at less than $550,000 as well as land valued at less than $400,000. However, the government also offers a duty concession for homes valued over this amount and has created a handy table to explain the differences.
First Home Owner Grant New South Wales
In NSW, first home buyers are entitled to a range of one-off grants, exemptions and concessions when buying or building a new home.
The First Home Owner Grant (New Homes) scheme provides $10,000 to eligible first home buyers to help buy or build a new home. The value of the new home purchased must not be greater than $650,000. When you enter into a contract to build a property, or are an owner builder, the total value cannot exceed $750,000. At least one of the homeowners will need to live in the property for a continuous period of at least six months.
Through the First Home Buyers Assistance (FHBA) scheme, first home buyers are exempt from stamp duty (also known as transfer duty) on new homes up to $650,000, and on vacant land up to $350,000. They will receive stamp duty concessions on new homes valued between $650,000 and $800,000, and on vacant land valued between $350,000 and $450,000.
Additionally, under the FHBA scheme, shared equity arrangements allow eligible purchasers to buy property with other parties and still receive a concession.
First Home Owner Grant Victoria
The Victorian First Home Owners Grant of $10,000 is available to first home buyers for new homes valued up to $750,000. It requires at least one applicant to live in the property continuously for a minimum of 12 months. For new homes built in regional Victoria and valued up to $750,000 the FHOG is $20,000.
The FHOG doesn’t apply to established properties. However, whether the home is new or established, first home buyers can apply for the first home buyer duty exemption when they buy a property valued up to $600,000. A duty concession applies when the value is more than $600,000 but not more than $750,000. Depending on eligibility requirements, some first home buyers may also receive a principal place of residence (PPR) duty concession (for homes valued at $550,000 or less).
First Home Owner Grant South Australia
The South Australian Government’s First Home Owners Grant offers people buying or building new homes a grant up to $15,000, provided the market value of the property doesn’t exceed $575,000. All of the applicants must live in the home continuously for at least six months.
There’s also an incentive to support the construction of apartments, with off-the-plan buyers eligible for partial stamp duty concessions on apartments anywhere in South Australia. These concessions currently have an end date of 30 June, 2018, so check the RevenueSA website for updates.
First Home Owner Grant ACT
The FHOG in the ACT is currently $7,000 for purchasers of new or substantially renovated properties up to the value of $750,000. There’s a residency requirement of one year for at least one of the homeowners.
The ACT Government offers a range of other assistance to home buyers, including the Home Buyer Concession Scheme (HBCS) and Deferred Duty.
The HBCS applies to new homes, but there is a property ownership test, and thresholds on both the property value and the home buyer’s income. The conditions generally change every 12 months, so check the ACT Revenue Office website for the latest information.
If buyers qualify for either the FHOG or the HBCS, they can apply to defer payment of the duty. If they would have qualified for the FHOG but are buying an established property, they can still apply to defer the duty payment.
First Home Owner Grant Northern Territory
The Northern Territory’s First Home Owner Grant offers up to $26,000 to first home buyers and builders of new properties. It requires at least one applicant to live in the home continuously for a minimum of six months.
For first home buyers of established properties there’s the ‘First home owners discount’ scheme, which provides a discount of up to $23,928.60 on stamp duty.
First Home Owner Grant Western Australia
First home owners can apply for Western Australia’s FHOG of $10,000 if they’re buying or building a new property. The maximum value of the property can be $750,000 if it’s located south of the 26th parallel of south latitude, or $1 million if located north of the 26th parallel of south latitude. Each applicant must live in the home for a continuous period of at least six months.
All first home buyers, whether purchasing a new or established property, may be entitled to the first home owner rate of duty. The value of the home must not exceed $530,000.
First home buyers of properties up to $400,000 might also be eligible for a grant from the Home Buyers Assistance Account. This provides up to $2,000 for incidental expenses associated with purchasing a first home. In order to apply for this grant, buyers must meet certain criteria, including purchasing through a licensed real estate agent and having their loan financed through a lending institution, and they must intend to live in the home for at least 12 months. The home must be established or partially built, not vacant land or a house and land package.
First Home Owner Grant Tasmania
Tasmania’s FHOG was last year boosted to $20,000 for eligible first home buyers and builders. The property must be new or off-the-plan, and all grant applicants must live in the home for a continuous period of at least six months. Land tax is not payable on a principal place of residence. First home buyers should apply for a principal residence land classification.
First Home Buyer Guide
Everything you need to know to buy a property in one easy guide. This guide is packed full of checklists and tools to help you make the right choice.
But the truth is, every additional percentage point in your home loan interest rate could cost you thousands of dollars every year… and as your home loan is most likely the longest loan you will ever have. If it was a short-term loan, it wouldn’t matter as much… but 30 years is a long time to be paying extra money if you don’t need to.
Real estate is expensive so why would you want to pay more than you have to?
Look at the two below examples:
|Term||30 Years||30 Years|
|Total Principal + Interest||$838,800||$890,640|
Total savings: $51,840
A difference of 0.5% in your home loan could end up saving you more than $50,000… which means you could pay it off faster! Like we said, it really adds up over 30 years.
What we’re trying to say is your interest rate matters. You don’t want to pay more than you have to… which is what we’re here to help with.
Our team of mortgage brokers have access to more than 40 lenders and are experts are finding the right lending solution for your needs.