FAQs about the First Home Owners Grant
- Written by NewsServices.com
If you are thinking about purchasing a home in Australia, you should know that you may qualify for the First Home Owner Grant. You probably have many questions about this grant, and with the help of Ward Builders, we hope to answer some of those questions here.
What is the First Home Owner’s Grant?
The First Home Owner’s Grant (FHOG) has been put in place since 2000 by the Australian government to help first time home buyers to purchase property in Australia by being able to offset GST on the purchase of a home. For those who are eligible, the FHOG is a one-time payment which can range from $10,000 to $20,000 and is made toward the purchase price of a property. Every territory or state in Australia has their own rules around eligibility as well as legislation so you will need to research this carefully before you commit to the purchase of a home.
What is the Amount of the FHOG?
The FHOG is only available for purchasers of a new home or townhome that has a value of less than $750,000.00. Your grant’s value will be reliant on the date of your contract, so a purchaser may have received $15,000.00 for a contract signed between October 2012 and June 30, 2016, or July 1, 2018, or later and $20,000.00 for a contract dated between July 1, 2016, and June 30, 2018.
Will I be Able to Use the First Home Owner’s Grant as my Deposit?
You can use the FHOG towards your deposit on the purchase of your home. Many banks consider the FHOG as part of your application for financing if the loan to value ratio is under 80% because it is considered a non-genuine savings. Most banks will submit the application on your behalf and receive the funds directly towards your purchase. You should only apply for the grant if someone else (or whoever is providing you with financing) has not already applied on your behalf.
Am I Able to Get the First Home Owner Grant if I am Purchasing a Property with Someone Else?
You should be eligible to the FHOG if your co-purchaser is also eligible to receive the FHOG. That means that the co-purchaser must also meet all the necessary eligibility requirements.
Who is Eligible to Receive the FHOG?
There are several requirements for eligibility for the FHOG:
-
At least one of the applicants for the FHOG must be a permanent resident or an Australian Citizen
-
You have not owned (or co-owned) a home anywhere in Australia
-
You must be an individual purchaser, not a company or trust
-
You must be over 18 years of age.
-
If you have received an FHOG anywhere in Australia, you are not eligible to receive it again
-
If you are buying a home that has been recently renovated, this must be the first time that the house has been sold after it was renovated; and it cannot have been occupied by a builder or a tenant in the intervening period from renovation to your purchase. It cannot have been used as an Air BNB or other accommodation. In short, no one can have occupied the home before you purchase it after renovation has been completed.
-
If you are purchasing a new home or townhome, it must have a value of less than $750,000.00.
-
Either you or your co-purchaser must move into the home within 12 months after it has been purchased and must reside there for six consecutive months.
What are the FHOG Conditions?
There are two conditions of the FHOG, and those are that you need to meet the eligibility requirements and that the amount is set by the state where you are purchasing property.
Is There an End Date for the FHOG?
There is no end date for the FHOG but that can change at any time. It is always a good idea to check in with your state or territory website to obtain the necessary information regarding the FHOG in your local region.
