If you are a first time home buyer in Australia seeking financial assistance, then a First Home Buyer Grant will help you to buy your dream home. It gives you the financial aid that helps you to make the first payment for the home and then manage the rest with the help of a home loan.
What is a First Home Buyer Grant?
The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. The Scheme was established to assist first home buyers to purchase their first home by offering a $7,000 grant. Eligible first home owners can receive the grant regardless of their income or the area in which they are planning to buy or build.
The scheme allows eligible individuals to purchase a house, townhouse, apartment, unit or similar contingent on the valuation being $750,000 or less. Most importantly, the property cannot be a holiday home or an investment property. If you match the criteria, then you can enjoy the benefit of this scheme and get your first home.
Eligibility for First Home Buyer Grant
- In order to get the First Home Buyer Grant, you need to meet the following eligibility criteria. The applicant needs to be a natural person above 18 years of age. Companies and Trusts are not eligible to apply for the grant.
- The applicant should be an Australian citizen or a permanent resident.
- New Zealanders holding a special category visa under s32 of the Migration Act 1958 and anyone holding a permanent visa under s30(1) are considered to be a permanent resident for these purposes.
At least one applicant needs to occupy the home as their principal place of residence for a continuous period of 6 months, commencing within 12 months of settlement or construction of the home.
- The applicant should not have received the grant earlier.
- The applicant should not have owned a home in Australia, either jointly or separately, prior to 1 July 2000,
Don’t Base Your Home Buying Decision on Grants
Some buyers choose properties due to the additional benefits of availing first home buyer grants. This may work out for some, but it is better to seek low interest rate home loans that help you to get substantial savings and you can use the amount for investment properties, holiday homes and other residential properties. If you need help with home loans, you should consult with our dedicated home loan specialists who have years of experience in the market and they are more than determined to help you get the lowest home loan interest rates in the market.