Buying your first home is a thrilling time and is probably one of the biggest purchases you’ll make in your lifetime. The First Home Owners Grant is a one-off tax-free Federal Government grant to Australian citizens buying their first home.
NSW Mortgage Corp specialises in helping people into their first home. As you’re new to the home loan market, you probably have several questions you’d like a mortgage specialist to answer for you and put simply, that’s why we’re here.
In fact, we have devoted an entire section of our website to first home buyers who are trying to do their own research first. You’ll find a helpful suite of finance and home loan calculators, tips and guides to help answer some key questions. View the First Home Buyers Section.
Of course, filling in the enquiry form (to the right) or phoning us to chat with a mortgage specialist can save you hours of research – we’ll go through the simple application process with you, look at whether or not you have a deposit, figure out exactly how much you need to borrow and present you with some of the leading options based on your circumstances. We can even help you lodge your First Home Owner Grant Scheme application with your home loan.
Am I Eligible to Receive the First Home Owners Grant?
Beyond the Federal Government's grant, you may also be elibible to receive state government concessions available on top of the First Home Owner Grant depending on where you’re planning to buy your first property.
You are eligible for the Australian Government’s First Home Owner Grant if:
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You are an Australian citizen or permanent resident;
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Your are buying or building your first home in Australia; and
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You have the intention of occupying the property as your principal place of residence within 12 months of the settlement and living in it continuously for at least 6 months
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If you are buying the property in conjunction with others, they must also meet the same criteria for the First Home Owners Grant to be applicable.
Is the first home owner grant means tested?
No. If you’re eligible for the grant, you can receive it regardless of your income and the area in which you are planning to buy or build. You also don’t have to pay tax on the grant.
What are the limitations?
There is a cap on the maximum property price a first home buyer can pay to remain eligible for the grant. The cap is as follows:
- Australian Capital Territory: No limit
- New South Wales: $750,000
- Northern Territory: $750,000
- Queensland: $750,000
- South Australia: No limit
- Victoria: $750,000
- Western Australia: $750,000 or $1,000,000 for property north of the 26th parallel
What does the State Government Offer?
There are also additional grants that some state governments are providing to first time buyers, such as:
- New South Wales: provides a $3,000 supplement and their First Home Plus scheme offers an exemption from duty of up to $17,990. So when you add this to the FHOG, benefits of up to $41,990 may be available to first home owners in NSW.
- Victoria: you can get a First Home Bonus Grant of $11,000 for a new home and $2,000 for an existing home on contracts entered into between 1 July 2009 and 30 June 2010, where the value of the property is $600,000 or less.
- South Australia: a First Home Bonus Grant of $4,000 is available for first home purchases with a market value of up to $400,000. This phases out for properties with market values between $400,000 and $450,000 by $8 for every $100 in excess of $400,000.
- Tasmania: if you are eligible for the First Home Owners Grant you also get a stamp duty concession of up to $4,000 on the purchase of an existing property valued up to $350,000.
- Western Australia: if you are eligible for a First Home Owners Grant, you pay no stamp duty on properties worth $500,000 or less.
To see your latest requirements, take a look at what each state and territory offers first home buyers: NSW | VIC | QLD | SA | WA | NT | TAS | ACT.
For more information, speak to a home loan specialist at NSW Mortgage Corp today. Simply call (02) 9798 1570 or fill in the enquiry form to the right.
External Resources: home loans (UK), Mortgage Broker Sussex (UK).