Real Estate

Are You Eligible for a First Home Buyer Grant?

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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.

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Investors Are Returning To The Property Market Despite Falling Home Loan Demands in Australia

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The demand for home loans in Australia fell in the month of March this year. However, it was interesting to see that the value of the investor loans increased. This is a clear indication that the investors are returning to the market despite the falling home loan demands.

ABC. News reported that the data from the Bureau of Statistics showed the number of loans taken out by owner-occupiers dropped by 0.9 per cent over the month to 56,316, seasonally adjusted, although they are up by 3.8 per cent over the year. Economists had already predicted the downfall which was expected to be 1.5% in March.

The value of owner-occupier mortgages fell by 1.2%over the month to $20.7 billion on a seasonally adjusted basis. In contrast, the value of loans taken out by investors rose by 1.5% (seasonally adjusted) to just over $12 billion. This indicated a clear pull back from the 3.1% increase seen in February. All of this caused the value of the investor loans to fall down by 13% over the year.

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Based on the above statistics and data, it is evident that investors are driving the demand in the market. Due to the increased competition in the market owing to increased participation of lenders, refinancing has become a popular option for those who wish to seek lower interest rates and better deals on their existing home loans.

The fall in home loan demand in March should not be considered as the overall trend in the market. If you consider the long term average value, then the position has been good enough. Even the number of home loans written in March this year was 3.8% higher than the previous year. This shows that the market is headed for a gradual but positive growth.

Based on the analysis of the available data, it is safe to say that the market will remain alive in the times to come and the growth will show a positive trend as more investors participate in the market in addition to the rise in refinancing options.​

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