First Home Owners Grant

The First Home Owners Grant is a national scheme funded by the states and territories and administered under their own legislation. The grant is a one off tax free payment to first home buyers in Australia, who satisfy the eligibility criteria. To be eligible, you must be at least 18, you or other applicants may not be a company or trust, at least one of the applicants must be a permanent Australian resident, and you must occupy the residence for 6 months beginning in the first 12 months of settlement

The First Home Owner Grant (New Homes) gives $15,000 to eligible first home buyers to help them to buy a brand new home or to build their first home. It has been announced that the grant will be reducing to $10,000 on 1 January 2016. Applications must be lodged within 12 months of completion or settlement of your new home.

First Home buyers
For first home buyers in Sydney, Loans and Mortgages has good news. We are helping you arrange loans for your first property purchase. We can help you obtain the First Home Buyers Grant offered in NSW. You can buy brand new properties that can fall in any of the below-mentioned categories:

  • A house that has never been occupied before
  • A house that has not been sold earlier as a residential premise
  • A house that has undergone significant renovations
  • A house that has been built to replace a demolished property

We help you understand the process by giving you all the information in simple words. We make you aware of a lot of things such as: choosing the most appropriate loan to apply for, additional costs that you should be prepared for and the factors that determine whether you are eligible for the loans for first home buyers in Sydney.

We can explain to you the key facts of borrowing money such as how much you should borrow and the common features of loans and of course, suggest the best loan for your needs. Purchasing your first home can be an exhausting process. But at the same time it could be rewarding if you understand every detail of it. The devil is really in the details in this case.

Benefits of minimum 20% deposit

Ideally you should put down a deposit of 20% or more, so that you can avoid paying what's known as 'Lender's Mortgage Insurance' (LMI). This is an insurance policy for the lender against you not paying your mortgage. Although you pay the initial premium, it only covers the lender not you, so the faster you can get to a 20% deposit and avoid paying for it the better for you. Also, obviously the more you can put down as a deposit, the less you'll have to borrow and therefore the less interest you'll pay over the lifetime of the loan.

New South Wales
In New South Wales, you may get a $15,000 grant through the First Home Owner Grant New Homes Scheme (FHOG New Homes), but only if you are a first time home owner who is building a home or buying a newly built home. You can only claim the grant for properties costing up to $750,000. The grant reduces to $10,000 from 1 January 2016.

If you’re a first home buyer, you are exempt from paying stamp duty on new house purchases of up to $550,000. You can also claim duty concessions for homes valued between $550,000 and $650,000.

Victoria
In Victoria, you can get a $10,000 First Home Owner Grant if the property you buy costs up to $750,000 and the property is a new home.

First home owners will also be entitled to a 50 per cent stamp duty reduction, but only if the purchase price is less than $600,000.

Western Australia
In Western Australia, you can get the a First Home Owner Grant if the property you buy costs up to $750,000. If you buy a home north of the 26th parallel, you can get the grant if the property you buy costs up to $1 million. For new homes the grant is $10,000 and for established homes the grant is $3,000.

You’ll pay no stamp duty on houses costing up to $430,000. Between $430,000 and $530,000 you pay stamp duty at a rate of $19.19 per $100 or part of $100 above $430,000. If you buy a property costing more than $530,000, you pay stamp duty at the standard rate.

Queensland
In Queensland, you can get a $15,000 Great Start Grant if the property you buy is a new home and costs no more than $750,000.

You’ll get a reduction on stamp duty of $8,750 provided the property you buy costs no more than $505,000. For homes costing between $505,000 and $550,000 you’ll get a sliding scale concession.

South Australia
In South Australia, you can get a $15,000 First Home Owner Grant if you buy a new property for $575,000 or less.

Tasmania
In Tasmania, you can get a $7,000 Tasmanian First Home Owner Grant if you purchase a new property, regardless of the cost your home. Additionally, you may qualify for the First Home Builder Boost if you are buying ‘off the plan’ or building a new home.

The First Home Builder Boost can increase the total grant to $30,000. The maximum grant reduces to $20,000 from 1 January 2015, and then reduces further to a $10,000 maximum grant from 1 July 2015 onwards.