Get on the Property Ladder with a First Home Owners GrantOwning your own home, is a dream held by many Australians, however, today's current financial climate can make this harder than you would hope. First home buyers are simply being priced out of the market.
In 2001 the Australian government decided to bring in a scheme which would help first time buyers get into the property market and the First Home Owner's Grant was born.
The grant, which is a one-off payment of up to $21,000, was developed to assist first home buyers with the cost of buying a new home. A first home owners grant is there to be used for either building a new home, or buying an established home. 
Potential first home buyers should check to see if they qualify for the grant and that you do meet the criteria.
- Australian citizen or an Australian resident
- none of the applicants (if it is to be a joint application) or single applicant can have owned a residential property prior to applying for a first home owners grant
- over the age of 18
- you must live in the property for at least six months of the first 12 months after purchase
The Office of State Revenue in your state will give you more information on the grant, how to apply, check if you are eligible and any updates on the grant.
Applicants can then use their grant for a variety of uses. Some buyers may use it towards a deposit for a home, others to pay for legal fees, or perhaps to cover the costs of building inspections. Putting it towards the mortgage is a great idea though, as this can reduce the interest payable on the mortgage. Should you wish for more information on the grant, you should contact your Revenue State Department who will be more than happy to advise you on its potential uses.
Once you are confident that you meet the criteria for the grant, simply fill out an application form and send it back to your Revenue State Department where an official will look over it. You will be asked to supply supporting evidence such as birth certificates, certificate of Australian citizenship, permanent resident Visa or Australian passport. A State Department official will collate your information and then advise you if your application was successfull.
From October 1st 2009 the First Home Owners Grant is reduced to $10,500 for those buying an existing home, and $14,000 for those building or buying a new home. Then from December 31 it will be cut back to the original $7,000 for both categories.
|
|
First Home Grants
|
Get the Most out of your FHOG
The top five ways to maximise the first home owners grant and get the true benefits. |
|
What you you wanted to know about FHOG but were too afraid to ask! |
Buyer beware! Top 4 mistakes first home buyers make and how to avoid them.
|
|
We have clever strategies to make home ownership more affordable. |
|
First home buyers need to be extra careful when it comes to a first mortgage. .
|
|