Buying your first home is a thrilling time and is probably one of the biggest purchase you’ll make in your lifetime, and may be helped with the first home buyers grant. If you’re a first-time buyer you should be taking advantage of The First Home Buyers Grant, a one-off tax-free Federal Government grant to Australian citizens buying their first home.
The first thing to do is to determine if you are eligible for the first home buyers grant
To find out, answer the following questions:
- Are you an Australian citizen or permanent resident?
- Are you buying or building your first home in Australia?
- Do 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?
- If you are buying the property in conjunction with others, do they also meet the same criteria for the First Home Owners Grant?
If you answered yes to these 4 questions, congratulations, you are eligible for a First Time Home Buyers Grant. 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 for First Time Home Buyer Grants?
There is a threshold on the maximum property price a first home buyer can pay to remain eligible for the grant. The thresholds* are as follows:
- Australian Capital Territory: Threshold of $750,000/ $10,000 grant
- New South Wales: Threshold of $750,000/ $10,000 grant
- Northern Territory: No Threshold/ $26,000 grant
- Queensland: Threshold of $750,000/ grant $20,000
- South Australia: Threshold of $575,000/ $15,000 grant
- Tasmania: Threshold of $350,000/ $20,000 grant (1/1/16 through 1/7/17)
- Victoria: Threshold of $750,000/ $10,000 grant
- Western Australia:Threshold of $750,000 or $1,000,000 for property north of the 26th parallel/$10,000 grant
Beyond the Federal Government’s grant, you may also be eligible 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. To see the latest requirements and details about additional concessions, take a look at what each state and territory offers first home buyers: NSW | VIC | QLD | SA | WA |NT | TAS | ACT.
Speaking with a mortgage specialist can save you hours of research – they will 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. They can even help you lodge your First Home Owner Grant Scheme application with your home loan. NSW Mortgage Corp specialises in helping people into their first home and is a great resource for first time home buyers.
*The threshold and grant amounts are subject to change. Please verify amounts with your state and territories official website.