First Home Owner Grant (FHOG)
Purchasing or constructing your first home can be challenging due to financial constraints. To aid first home buyers, the Australian government extends various schemes, including the First Home Owner Grant (FHOG). This guide compiles essential details about the grant, elucidating eligibility criteria and frequently asked questions.
Understanding the First Home Owner Grant
Introduced on 1 July 2000, the FHOG aims to expedite first home purchases. It’s a nationwide initiative funded by individual states and territories, each having its legislation.
Grant Amounts Across States and Territories
NSW: $10,000
VIC: $10,000
QLD: $30,000 – Update: QLD doubled its grant on 20 November 2023
WA: $10,000
SA: $15,000
TAS: $30,000
NT: $10,000
ACT: The ACT government no longer offers the First Home Buyer Grant.
Eligibility Criteria for the FHOG
The standard eligibility criteria across Australia include:
Property being newly built, off-the-plan, or substantially renovated.
Submission of the FHOG application, along with supporting documents, within 12 months of completing an eligible transaction.
Applicant/s being at least 18 years old, Australian citizens, or permanent residents.
Applicant/s cannot be a company or a trust
No previous receipt of FHOG in any Australian state or territory.
Not owning residential property or holding relevant interest before specific dates.
State and Territory Specific Criteria for the FHOG
Each state and territory has additional criteria:
New South Wales: Property price limitations, duration of residence, and specific occupancy conditions.
Victoria: Property price caps and residency duration requirements.
Queensland: Property value restrictions and occupancy timelines.
Western Australia: Residency periods and restrictions regarding property ownership timelines.
South Australia: Property value limits and eligibility for specific visa holders.
Tasmania: Occupancy duration and prior property ownership conditions.
Northern Territory: Conditions related to property ownership and residence.
Australian Capital Territory: ACT no longer offers FHOG, substituting with stamp duty exemptions and concessions.
Application Process and Utilisation of FHOG
Most applicants apply for FHOG concurrently with their home loan application. The grant can be utilised as part of the deposit but might not cover the entire amount. If a 20% deposit isn’t attainable, Lenders Mortgage Insurance (LMI) might be necessary. Home Guarantees can enable purchases with a 5% deposit, while guarantors can provide equity to avoid LMI.
Timing and Usage of the FHOG
Payment timing varies by state or territory. Generally, the FHOG is disbursed post-property settlement. The application process involves an approved agent, often the financial institution or state revenue office.
FHOG and Investment Properties
FHOG isn’t applicable for investment properties. It’s exclusively for owner-occupiers, requiring a continuous residence period, usually 6 to 12 months.
Talk to Adelaide Buyers Agents about sourcing your first property today.
First home buyers can explore FHOG eligibility or other government initiatives through Meta Financial’s Specialists. Reach out today for more information.
Note: The information provided is general and should not replace professional financial advice.
