How much is the First Home Owner Grant?
$7000.
The First Home Owner Grant (FHOG) provides $7000 towards the purchase of a first home for eligible applicants. The First Home Owner Grant is not means tested.
This means that eligible First Home Buyers can receive $7000 regardless of their income, the area in which they are planning to buy or build, or the value of the home. The grant is not taxed either.
First Home Owner Boost
The Australian Government has announced a First Home Owner Boost, which supplements the State & Territories Government funded First Home Owner Grant Scheme.
According to the announcement from the Australian Government:
- First home buyers who purchase established homes will receive a boost of $7000 that will double the grant to $14,000
- First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000
- For contracts made between 14 October 2008 and 30 June 2009
Who is eligible for the First Home Owner Grant?
FHOG is available to people buying or building their first home and who meet the following criteria:
- Each applicant is a natural person (ie not a company or trust.)
- At least one applicant must be a permanent resident or Australian citizen.
- Each applicant must be at least 18 years of age.
- All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
- All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months .
- Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000.
- This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid)
- At least one applicant will occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of settlement or construction of the home.
Applying for the grant
An MFAA member who is an approved agent can apply for the grant on your behalf. Brokers who are also MFAA members can help you lodge an application with an approved agent. To learn more about the First Home Owner Grant, contact your MFAA member today.
Want another Mortgage & Home Loan tip?
Mortgages & Home Loans: Parental Loans & Guarantees. Check out Essential #17