What is the First Home Owners Grant?
The First Home Owners Grant (FHOG) in Australia is designed to inspire and help home ownership across the country. For eligible borrowers it’s the best time to become property owner. This grant terms differs in each state of Australia and in most states it’s only applicable for new property purchase. Here we will discuss about NSW’s First Home Owners Grant only.
How does First Home Owners Grant work?
The First Home Owners Grant (FHOG) is a national scheme which is financed by the states, territories and administered under their own legislation.
All states of Australia offers the basic $7,000 grant, besides this some states and territories may provide their own additional grants and stamp duty subsidies. These extra benefits may include for new constructions and new homes in regional areas.
Tax is excluded on the grant and the state government administers it with the support of a bunch of approved banks and lending institutions even though grant regulations varies in each state.
Eligibility Requirement For The First Home Owners Grant:
- Must be an Australian Citizen or Permanent Resident
- Must not have owned property in Australia
- Must reside in Australia for 6 months or more
- Must be over 18 years of age
- Must be buying or building property as an individual instead of company or trust
- Must not claimed this grant before by you or your spouse
- An eligible home must be located in Australia and be a new or established house, home unit, flat or other type of self-contained fixed dwelling that lawfully can be used as a place of residence
- Must live in the property for six months or more, starting immediately within the first 12 months after purchase
For free consultation about your eligibility with our Mortgage Broker contact us online or call 1300 95 60 50 now.
First Home Owners Grant in NSW
From July 1, 2017, NSW government declared various changes to improve affordability for first home buyers. This new package consists the following-
- No Stamp Duty on all home valued up to $650,000
- Stamp duty reduction on homes valued up to $800,000
- No Insurance duty on Lenders mortgage insurance
- $10,000 grant for builders of new homes valued up to $750,000
- $10,000 grant for purchasers of new homes valued up to $600,000
- Investors can’t postpone stamp duty payments on Off-The-Plan purchases
- Foreign investors need to pay higher duties and land taxes
To know more about this grant contact us online or call 1300 95 60 50 now.
How Much Could First Home Buyers Save?
|First Home Purchase Price||Ordinary Stamp Duty||Savings For First Home Buyers|
Of New Dwellings*
|Savings For First Home Buyers|
Of Existing Dwellings*
*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).**Does not include additional land tax surcharge.