There are so many variables that come into play when you are a first time home buyer. How much can I borrow? Do I need a mortgage broker? What will my loan repayment look like? It’s easy to get overwhelmed when you’re bogged down by so many moving pieces and industry terms.
But that’s where LiveInvest comes in! We’re the experts that Australian first time home buyers trust to guide them through their biggest purchase ever. So what’s the single most important thing first time home buyers should be aware of?
First Home Owner Grants.
What is a First Home Owner Grant?
The First Home Owner Grant or ‘FHOG’ as you might see it referred to as is a program that the government introduced a little over 20 years ago in order to offset the cost of GST on first time home buyer’s homes. In short, the FHOG is a scheme that’s meant to make the cost of homeownership more affordable to Australians that are first time home buyers. It is the financial bridge that the government is offering you in order to encourage you to buy your first home!
It sounds simple, but this has major financial benefits to you as a first time home buyer.
How does a First Home Owner Grant Work?
Though the FHOG is a national program, it’s paid for by the states and territories – so each state administers the grants in a slightly different way. Therefore, the size of the grant and the eligibility criteria attached to it differ by state. In most places, you’re eligible if you are either purchasing a new home which has not yet been lived in OR building an entirely new home from scratch. We’ll break it down for you by state below…
What grants are currently on offer in your state or territory?
First Home Buyers in New South Wales
New South Wales provides $10,000 towards the purchase price of the home, in addition to the First Home Buyers Assistance Scheme benefits which provides a discount or exemption on transfer duty. To be eligible for the FHOG, you must be buying or building a brand new home that costs less than $750,000.
First Home Buyers in Victoria
First Home Buyers in Australian Capital Territory
As of July 2020, the FHOG is being replaced by the new Home Buyer Concession Scheme, which will erase the full duty of the home for eligible applicants. To be eligible for this, the total gross income of all buyers, including their partners (if any) must not be greater than $160,0003 to $176,650 (dependent upon the number of children in the home) and the buyer must live in the home continuously for the first 12 months. Talk about serious savings!
First Home Buyers in Queensland
As of July 2020, the FHOG is being replaced by the new Home Buyer Concession Scheme, which will erase the full duty of the home for eligible applicants. To be eligible for this, the total gross income of all buyers, including their partners (if any) must not be greater than $160,0003 to $176,650 (dependent upon the number of children in the home) and the buyer must live in the home continuously for the first 12 months. Talk about serious savings!
First Time Home Buyers in South Australia
First time home buyers in South Australia are entitled to $15,000 for their first home so long as the market value of the home does not exceed $575,000.
First Time Home Buyers in Western Australia
WA residents can get $10,000 when buying or building a brand new home. If you are purchasing an established home, you may be eligible for the concessional first home owner rate of duty instead. Contact us if you’d like to better understand these guidelines. For both of these offerings, the house must be your primary place of residence for at least six months commencing within 12 months of the transaction.
First Time Home Buyers in Tasmania
First home buyers who are building or purchasing a brand new residence in Tasmania may be eligible for a grant of up to $20,000, but they must live in the home for at least six months, commencing within 12 months of the transaction. Alternatively, first time home buyers wanting an established home may be eligible for the First Home Owner duty concession of 50 per cent discount, on eligible established homes valued at $400,000 or less.
First Time Home Buyers in Northern Territory
Northern Territory provides $10,000 towards the purchase price of the home for any first time home buyers who are buying or building a brand new home.
Why choose LiveInvest as a first time home buyer?
- Fast Approvals: When you’re a first time home buyer in a competitive market, time is of the essence. It’s important to have a mortgage broker that values this advantage in the process and we know that it’s important to you to get results as quickly as possible. With fast-track loan options and streamlined application processes, LiveInvest is dedicated to getting your first time home buyer loan approved quicker!
- Convenience: First time home buyers are hard working and busy individuals. Their time is valuable and we at LiveInvest put our customers first so that you don’t have to spend time sitting in a waiting room or bank queue in order to lodge your loan application. Flexibility is one of our core values and that means that our brokers visit you at the time and location that’s most convenient for you.
- Range: We offer products to suit the needs for every first time home buyer. We appreciate that everyone’s situation is different and therefore, it’s important that we cater your solution to your specific set of criteria. Let us know if there are certain specifications we need to be aware of to fit your situation and we’ll find an affordable solution for you!
- Relationship: Unlike most mortgage brokers, our first time home buyer service goes beyond the settlement of your new loan. We provide ongoing support, even after you are approved for your first time home buyer loan, to ensure that you continue to have access to the best finance solutions on the market!
- Network: We are partnered with some of the best local professionals and businesses, so we can help you get the right advice and best service on the market!
Use our mortgage affordability calculator to figure out what your loan repayment might look like. If you’re a first time home buyer and are interested in hearing more about the First Home Buyer Grant, call us today at 1300 831 288!