What is the First Home Owner (Buyer) Grant?
The First Home Owner Grant (FHOG) is a one-off grant by the Federal Government, introduced in 2000 to assist first home buyers with building or buying a brand-new home.
While the FHOG is a national scheme, it’s funded by the states and territories and administered by each of them individually. This means, each state or territory has a slightly different eligibility criteria and tweaks its own FHOG rules almost every year.
We’ll look at some general principles of the FHOG, the intention behind it and then look at the eligibility rules. We’ll also show you where to find more information depending on the state or territory you live in.
What you need to know about the First Home Owner Grant
Introduced to offset the effect of GST on house ownership, the FHOG has evolved into an economic stimulus tool. It generally changes to reflect housing affordability and can change quickly and often. This home buyer grant is now aimed squarely at new builds.
How much is the First Home Owner Grant?
If it’s your first time buying a home – you may be eligible for the FHOG or relevant concessions, exemptions or reductions. The FHOG has undergone changes over the years and varies a great deal from state to territory to state.
First Home Owner Grant state by state
Find out how much grant is available depending on the state or territory you live in.
Eligibility criteria for the First Home Owner Grant
Each state and territory has its own rules, but the following conditions generally apply:
- It’s only available to first home buyers. You – and your spouse or partner – can’t have owned property before.
- You can only receive the grant once.
- You must be an Australian citizen or permanent resident (may vary by state or territory).
- You must be a ‘natural’ person (in other words, a real human, not a company or a trust)
- You must live in the house for at least six months once it’s built
- Most states and territories have a minimum age requirement (usually 18).
- In almost every instance, the property must be either new or ‘substantially renovated’ (for example, much more than just a new kitchen).
Do concessions apply?
You’ll need to check the rules for your state or territory, but you could be eligible for:
- discounts on stamp duty – some states and territories can waive or discount stamp duty up to some property price limits
- regional property concessions – you may be eligible for a larger grant if buying or building in regional areas, or even a larger discount on stamp duty
- the First Home Guarantee which supports single parents to buy a family home with a deposit as small as 2%
- the Family Home Guarantee allowing first home buyers to buy a property with a deposit as low as 5%.
Find out more about the Home Guarantee Scheme.*
*Formerly First Home Loan Deposit Scheme
Applying for the First Home Owner Grant
To apply for the FHOG, you can:
- lodge the application yourself through your state or territory authority
- ask your home loan provider to lodge the application for you.
When will the grant be paid?
Each state and territory has their own rules so you’ll need to check out the sites above. But generally, the grant is paid out under these conditions:
- established home: payment will be made on settlement
- contract to build: grant paid to the builder with the first progress payment
- new home: payment at settlement
- purchase off the plan: payment at settlement.
If you need help with arranging finance for your home loan, contact us today.
Source: NAB
Reproduced with permission of National Australia Bank (‘NAB’). This article was originally published at https://www.nab.com.au/personal/life-moments/home-property/buy-first-home/first-home-owner-grant
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