Tips to Get the First Home Owners Grant
If you are eligible to receive the first home owners grant you should consider engaging the services of a mortgage broker to help you complete the required documentation as well as put together all the necessary supporting documentation.
eChoice Home Loan Comparison Service
For first home buyers on a steep learning curve, the advice, experience and assistance of an eChoice mortgage broker can help ensure you choose the best loan for your needs, not just the one with the best ad campaign. Your eChoice broker will also ensure you are getting all of the grants and concessions you are entitled to for your circumstances and your state or territory.
- Compare loans from over 30 lenders all in one place.
- Work with one dedicated personal loan manager who understands your needs and respects your goals.
- 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
Consider using the services of a mortgage broker
A mortgage broker is an expert in the home loan industry and as such is familiar with what is required to facilitate your efforts in obtaining the grant. They can also help you make application for the home loan you will need to purchase your first home with. It is not an easy task to complete documentation such as is needed in making claims for the first home owners grant nor to apply for a home loan. It is both daunting and confusing for many. The first home owner grant application is an important legal document and it must be answered honestly and clearly with no ambiguousness whatsoever. If it does contain answers that are not clear, or if any supporting documentation is not included when asked for, it will be returned to you un-processed and you will have to start over again.
Avoid the possibility of giving fraudulent answers
If you have answered any question wrongly, whether intentionally or not, you could be charged with attempting to fraud the Australian Government and face a heavy fine, as well as having to pay back the grant money, if the anomaly had not been discovered until after it was paid. A particularly sensitive requirement to prove your eligibility to receive the first home owners grant is in the area of relationships. It is clear that you, the claimant, can not have owned a home anywhere in Australia previously, otherwise you will be ineligible as you have to be a genuine first home buyer. What many applicants don’t fully understand however is that neither your spouse nor your domestic partner of any gender can have owned property anywhere in Australia before either, whether they are involved in the purchase of this particular property or not. If there is more than yourself buying the same property none of the other applicant can have owned property elsewhere in Australia previously either. It is easy to omit this information as it might seem unimportant at the time but the Offices of State and Territory Revenue, who are charged with administering the program will thoroughly check all applications and any such omissions will be picked up on.
Make your claim through a mortgage broker or your lender
The application for the first home owner grant can be made directly to the Office of State ( or Territory) Revenue, in the jurisdiction where the property being purchased in located. For instance if you live in Wadonga and the property you are buying is in Albury, you will have to make application for the grant through the New South Wales Office of State Revenue. Your application can be processed faster however if you place your claim with your mortgage broker of lender, if they are an authorised agent able to receive it on your behalf. If your application goes through smoothly you can expect it to be approved by the time of settlement, or if you are building your own home, by the time the first scheduled payment is due according to the terms and conditions of your construction loan.
How to spend your grant money
The first home owners grant is a once only, tax free, lump sum payment of $7,000 that you are able to spend how you wish. It is not means tested except that it is restricted to the buying of property valued at no more than $750,000 in most states and territories, except in Western Australia, where the grant can still be accessed on properties valued up to $1,000,000 north of the 26th parallel. Many first home buyers choose to use the grant money to pay the costs associated with buying the home. These costs, that include a possible establishment fee for the home loan to be set up, a valuation fee that will be required so that the correct valuation of the property can be ascertained, building and pest inspections have to be carried out and they can be costly exercises, as well as legal fees where your solicitor will have to be paid for looking after your legal interests, especially in the wording of the contract and of course conveyancing costs. It all adds up and your grant money can come in handy to meet such costs rather than you delving into your own savings. Where your lender will allow it, the grant money can be used to make up a greater deposit. In this way you can obtain more equity in the property which in turn means less interest payments.
Related posts:
- First Home Owners Grant (ACT)
- How to Apply for the First Home Owners Grant in South Australia (SA)
- How to apply for first home owners grant
- Can I Apply for the First Home Owners Grant if I Have Previously Owned a Property Which Was Then Sold?
- 10 Essential Facts About The First Home Owner Grant
- First Home Owners Grant FAQ
- First Home Owners Grant Eligibility Penalties NSW
- First Home Owners Grant Frequently Asked Questions (VIC)
- When Will I Get the First Home Owners Grant?
- First Home Buyers Grant Tasmania (TAS)
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