First Home Buyers Grant: How Do You Know You’re Eligible?
As a buyer entering the housing market for the first time, the process of purchasing a home can be incredibly overwhelming. However, with the knowledge that you may be eligible for some government assistance, all your hard work and effort can be rewarded.
The journey of saving for a deposit, hunting for property, and counting the days until you can move in can be made much sweeter knowing you qualify for the First Home Owner’s Grant (FHOG).
The FHOG was first introduced on 1 July 2000 to offset the effect of GST on home ownership. Under the scheme, a one-off grant is payable to first home buyers building a new home for an amount of up to $10,000.
While the FHOG was amended last year, first home buyers purchasing an established home, or building a new one, may still be eligible for the First Home Owner Rate of Duty (FHOR). However, the value of the home must not exceed $530,000 for established properties and $400,000 for new constructions.
While there are no income or asset tests for the Grant, there is a set of criteria you must be to qualify. It is important to note that each state has a different set of requirements.
But how do you know you can apply for one?
Before applying for the Grant, you need to determine whether you meet its requirements.
Below we have included a list of the main criteria required to apply for the Grant in Western Australia.
• An applicant must be 18 years or older and an Australian citizen
• An applicant must not have received the Grant or Rate of Duty previously
• An applicant must not have owned a home previously in Australia, which they have lived in
• An applicant must live continuously in the home for a minimum of 6 months, within the first year of ownership
For the full extended list, visit the government website to find out more.
Other relevant information
There may be restrictions on the Grant depending on the value and location of the property you are purchasing. To be eligible for the full amount, the maximum value of property located south of the 26th parallel of the south latitude should not exceed $750,000, while the maximum value of property located north of the 26th parallel should not exceed million dollars. To get an idea of the range of this area, Kalbarri is south of the 26th parallel, and Denham is north of it.
As a first home buyer, you may also be eligible for a Grant from the Home Buyers Assistance Account. This grant can assist you with up to $2000 for the incidental expenses associated with purchasing a property under $400,000.
However, you will need to meet another set of criteria. This involves using a licensed real estate agent to buy the property and using a lending institution to finance your loan. Your home must be established or partially built and lived in continuously for a minimum of 12 months.
As a first home buyer, government assistance can be the difference between buying the home of your dreams and a missed opportunity. That is why it is incredibly important to be aware of all the options available to you.
At Select, we offer no-obligation, quality, and free advice to help you reach your financial goals. If you a first home buyer unsure of whether you qualify for the Grant, speaking to one of our friendly brokers can provide you with up-to-date advice on what is available to you. To arrange an appointment, call us on (08) 9417 3399.