The First Home Owner Grant was introduced in Australia by the Federal Government on 1st July 2000 to offset the effect of the GST (goods and services tax) on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. Funds are available by way of a one off grant to assist eligible applicants with the cost of acquiring their first home.
You can choose to use the grant on whatever you wish, however its greatest value is as funds towards the house deposit, or to offset associated fees and charges.
A number of criteria must be met in order for your to be eligible for the First Home Onwer Grant (FHOG). You also must apply within 1 year after buying your home.
To be eligible:
Each person who owns a part of the home must be an applicant.
This includes anyone who is or will be on the title of the property with you. If you have a spouse who will not own any part of the home, you must include them on the application as a non-applicant spouse. All applicants must meet the eligibility criteria.
You must be:
at least 18 years of age
not a Company or a person acting as a trustee
an Australian citizen or a permanent resident (or a joint applicant with someone who is an Australian citizen or permanent resident).
You and your spouse have:
never been paid the First Home Owner Grant
before 1 July 2000, not owned residential property in Australia
from 1 July 2000, not lived in residential property (in Australia) you have owned.
You will:
move into the home within one year of buying it
live in the home for 6 months continuously as your principal place of residence.
The Office of State Revenue in your state can provide you with a comprehensive ruling on eligibility for the First Home Owner Grant.
Or
You can check with one of our mortgage consultants to see if you are eligible. We can also help you apply for the Grant with your loan application.
Government announces First Home Owners Boost!
The Australian Federal government has announced a First Home Owner Boost, available until 30 June 2009 to supplement the First Home Owner Grant Scheme.
The boost means an extra $7000 to eligible homebuyers buying an existing home, taking the total payment to $14,000 and an extra $14,000 to those building a new home or purchasing a newly constructed home taking the total payment to $21,000.
The Boost is not means tested and can be used to buy a property of any value.
To be eligible for the Boost, you must enter into a contract to purchase or construct a home between 14 October 2008 and 30 June 2009 and:
Be at least 18 years of age
Be an Australian citizen or permanent resident
Not have previously received the First Home Owners Scheme Grant, or have a spouse (or de facto) who has previously received the grant
Generally not have previously owned and lived in a home, or have a spouse (or de facto) who has previously owned and lived in a home in Australia and
Live in the home for a continuous period of at least 6 months, commencing within 12 months after completion or settlement.
NEWS FLASH!
Boost extended
The Australian Government announced a six month extension to the First Home Owner Boost Scheme as part of its 2009-2010 Budget.
The First Home Owner Boost will continue in its current form for first home buyers entering into contracts (and owner builders who commence construction) up to and including 30 September 2009, providing eligible first home buyers with $7,000 for established homes and $14,000 for new homes. In combination with the existing $7,000 First Home Owner Grant, this means first home owners will receive $14,000 for established homes and $21,000 for new homes.
For first home buyers entering into contracts (and owner builders who commence construction) on or after 1 October 2009 and on or before 31 December 2009, the Boost will be halved to $3,500 for established homes and $7,000 for new homes. In combination with the existing $7,000 First Home Owners Grant, this will bring the grant to $10,500 for established homes and $14,000 for new homes.
For more information about the First Home Owners Boost, call 1800 222 282, or contact the revenue office in your state or territory or visit the website
