First time home buyers who are buying or building their first home are eligible for the First Home Buyers Grant, sometimes referred to as the FHOG.    

This is a one off grant from the government aimed to assist you financially when you buy your first home.  If you have not previously bought or owned a residential property, are an Australian Resident and over the age of 18 then you can access this government grant.  

The grant is a welcome boost to many first home buyers who find the costs of buying first homes daunting.  Now that home loan interest rates have come down, and property prices are levelling out, first home buyers are finding there has never been a better time to purchase a first home.  

How Much You Can Access
The grant originally stood at $7,000 but in October 2008 it was increased in order to help the property market through the economic slowdown.  But all good things must come to an end and the grant is now due to be reduced as of 31 December 2009.  The original first home owners grant of $7,000 is still available to eligible first home buyers. 

The NSW First Home Buyers Supplement will be available until 30 June 2010 and the $7,000 First Home Owner Grant and the First Home Plus schemes will continue to be available after 30 June 2010.

If you would like more information on what you can claim please contact your nearest mortgage broker.


Tax Incentives
There is no tax payable on the grant and the state government administers the grant with the help of a number of banks and lending institutions that are approved.  Each state has variations on the grant regulations so be sure to check the Australian Federal Government website http://www.firsthome.gov.au/

The grant is not means-tested nor is it restricted by the price of the property. The state government administers the grant with the help of a number of banks and lending institutions that are approved agents.  You can only access the grant once.

Requirements:

•    You must be an Australian citizen or permanent resident
•    Have never owned property in this country
•    You must have lived in Australia for at least six months;
•    You must be over 18-years old
•    You must be buying or building your first property as a person, not as a company or trust
•    Neither you or your spouse must have claimed this grant previously
•    An eligible home must be located in Australia and be a new or established house, home unit, flat or other type of self-contained fixed dwelling that lawfully can be used as a place of residence
•    You must live in the property for at least six months out of the first twelve months immediately after purchase


So if you are looking to buy your first home and are searching for a great mortgage, contact a local mortgage broker and discuss your options.  Make sure you are aware of all the government financial assistance available to you and your family, and ensure you are getting the best home loan advice.

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