What are First Home Owners Grant?
The First Home Owner Grant is a national scheme implemented and funded by the different states and territories in Australia that provides a one time grant for first-time homeowners.
- To qualify, a set of criteria should be met. These are as follows.
- Buyer should be an individual, not a company or a trust
- The purchase should be a first time home purchase
- A permanent resident or a citizen
- You or your spouse must not have previously owned or lived in a residential property you own from 1 July 2000
- You or your spouse have never claimed a first home grant previously
- You will occupy your first home purchase as your main residence within 12 months of the construction or a minimum period of 12 months after the purchase of the home
Other states and territories may require additional sets of requirements to qualify. Here is a look at what is available for First Home Owner Grants in different states of Australia
A grant of $7,000 to help purchase a new or substantially renovated home for properties valued at $750,000 or less. Stamp duty concessions are also available on new and renovated properties.
First home owners grant of $10,00 is given to qualified individuals who have purchased or constructed a new home. The property value should not exceed $600,000 while constructed homes should not exceed $750,000 in order to qualify for a grant.
Exemptions from transfer duty are valued up to $650,000 and concession for new homes should be within the $650,000 and $800,000 limit. Eligible purchases for vacant lots that are valued up to $350,000 requires no duty payments. Concessions are however available for vacant lot purchases for properties between $350,000 and $450,000.
A $10,000 First Home Owner Grant is given to eligible applicants in Victoria that are buying or building a home that is valued not more than $750,000. Meanwhile, a $20,000 FHOG is granted to qualified applicants that are buying or building a home in the regional areas of Victoria, still for properties valued not more than $750,000.
Homes valued below $600,000 are exempted from stamp duties. Properties that are valued between $600,000 and $750,000 are qualified for stamp duty concession, applied according to a sliding scale.
A $15,000 is granted in Queensland as First Home Owners’ Grant for first-time homeowners or individuals building a new home. This grant is eligible for properties that are valued less than $750,000. This amount was usually at $20,000 but has changed since 1 July 2018.
No stamp duty is required for properties valued less than $500,00 and vacant lands valued at less than $240,000.
Building or buying your new home can get you an FHOG of $10,000 if you qualify with the other set of requirements required by your state. Those properties located south of the 26th parallel of the south latitude with values less than $750,000 is qualified for a grant. Properties north of the 26th parallel of the southern latitude value below $1 million is also eligible for the $10,000 grant.
Exemptions for stamp duty are available for properties that are less than $530,000 in value as well as vacant lots that are less than $400,000.
Purchases and construction of new homes that are valued not more than $575,000 are eligible of an FHOG or up to $15,000. Exemptions are not specific for First Home Buyers in South Australia. However, you may be eligible for stamp duty concessions for apartments
valued not more than $500,000.
An FHOG of $20,000 is granted to eligible first-time homeowners or those constructing their new home. However, this amount will be reduced to $10,000 from 1 July 2019 onwards.
In Tasmania, there are no concessions or exemptions from stamp duty for first time home purchases.
A grant of $26,000 is given to eligible applicants who purchase or construct a new home in the Northern Territory. Currently, there is no limit implemented for the value of the property to qualify for a First Home Buyers Grant.
Now that you have an idea on how much you’ll be able to save and re-allocate for your first time home purchase, applying for a home loan comes next. You can talk to an Intellichoice mortgage broker to finally secure the dream home that you love. Call us today at 1300 55 10 45.