First Home Owner Grant FAQ
The first Home Owner Grant has become a popular first home buyers assistant package mainly because of its simplicity and its wide coverage of first home buyers throughout the Australian community. It is funded by the Australian Government and administered by the various state and territory governments. This means there are some variations in its administration but its main thrust of providing initial financial help to those buying a home in Australia for the first time remains intact throughout all the jurisdictions.
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A mortgage broker offers unbiased advice on the home loan which is right for you, so if you are a first home buyer, look at working with eChoice, where you can have all of your questions answered and concerns allayed, because you’ll know you have done all the right research.
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- Interest Rate of 6.55%
- Comparison Rate of 6.55%
- Application Fee of $0
- Maximum LVR With LMI: 90%
- Minimum Borrowing: $0
- Maximum Borrowing: $0
In an effort to make it easier to understand we have compiled a list of Frequently Asked Questions regarding the grant along with the appropriate answer below:
Q. What is the First Home Owner Grant worth to me?
A. The grant is a one off tax free payment of $7,000 to all eligible first home buyers throughout Australia. It is paid on all homes valued up to $750,000 except in the following places such as Western Australia where first home buyers buying property north of the 26th parallel can still access the grant on properties valued up to $1,000,000 and in South Australia the valuation of the property being purchased is limited to $575,000. There is no limit placed on the value of property being purchased by first home buyers in Tasmania or the Australian Capital Territory.
Q. What do I have to do to apply for the First Home Owner Grant?
A. You can apply directly to the relevant state or territory Revenue Office, the government department charged with administering the grant. You can also download the application form from the appropriate government website. It is often faster to forward your application through your mortgage broker or your lender in they are authorised agents able to handle the papers on your behalf.
Q. Can I claim the grant if I plan to rent the property out and not live in it myself?
A. If you are buying the property alone you must live in it for at least six months during the first 12 months following settlement or, in the case of building your own home, from the date of completion of construction. Members of the armed forces living in New South Wales are exempt from this requirement. If you are buying in partnership with others at least one of the part owners must live in the property as stipulated above.
Q. If I am buying the home in conjunction with others do we all get $7,000 each?
A. No. Only one grant is available per property being purchased no matter how many joint owners the property has.
Q. I have only been in Australia a short time and am not sure if I will be staying here. Am I eligible to claim the grant?
A. To be eligible to claim the grant money on your first home being purchased in Australia you must either be an Australian citizen or a permanent resident of Australia. New Zealanders are treated as if they are Australian citizens as allowed for under the Migration Act 1958.
Q. My partner once brought a property that was in his name, can I claim the grant now if I went ahead and brought another property in my name?
A. The short answer is no. It is stipulated that neither yourself, nor your spouse or domestic partner of any gender can have owned property in Australia previously. This ruling still applies whether your partner has any interest in this new property or not.
Q. How long does it take before I receive approval for the grant money?
A. If you lodge your claim when you apply for finance it is usually ready by the time of settlement or in the case of those building their own home, by the time that the first scheduled payment is due under the construction loan agreement. It is faster if you lodge your application through your lender or mortgage broker than if you lodged it directly with your State Revenue Office. If you didn’t lodge your claim early you still have up to 12 months from the time of settlement or in the case of those building their own home, the completion of its construction. The commissioner can also extend these time limitations further under the appropriate circumstances.
Q. What type of home must I buy to qualify for the First Home Owner Grant?
A. The home must be legally habitable under federal, state and local building regulations. This means that it covers stand alone houses, flats, units, apartments, townhouses and in some jurisdictions mobile homes that are fixed to property owned by the grant recipient.
Related posts:
- Eligibility Criteria First Home Owner Grant (NT)
- 10 Essential Facts About The First Home Owner Grant
- Frequently Asked Questions: First Home Owner Grant
- First Home Owner Grant Overview (VIC)
- First Home Owner Grant – Lodgement Guide and Application Form (ACT)
- First Home Owners Grant FAQ
- First Home Buyers Grant WA
- How to Apply for the First Home Owner Grant (WA)
- First Home Owner Boost Information Sheet (NSW)
- First Home Owners Grant (WA)
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