Plain English Guide to The First Home Owners Grant

This plain English guide to the First Home Owners Grant is here to help you understand all the important facts about the F.H.O.G., how much you are entitled to under the First Home Owners Grant scheme and how to apply for your First Home Owners Grant.

If you have any questions about the information presented or would like to know more please contact me, Jamie Wadley at HunterWide Home Loans. I will be happy to help you in any way I can with your Australian loan.

All the best to you and your First Home goals.

Jamie Wadley

HunterWide Home Loans

How Much is The First Home Owners Grant?

The First Home Owners Grant is now a huge $14,000, its purpose is to assist you in the purchase of your first home, unit or apartment.

It was introduced in 2000 to offset the introduction of the GST (Goods and Services Tax) and was recently increased in October 2008 to $14,000 ($21,000 on New Homes plus an extra $3,000 in New South Wales - $24,000 in total!).

What is the First Home Owners Grant?

The First Home Owners Grant introduced on the 1st. July 2000 is a government scheme to assist Australians purchasing their first home. There has been talk of when the First Home Owners Grant will finish. It's introduction was to help offset the cost of the GST (Goods and Services Tax) and the effect it has on to buying your first home. In October 0f 2008 it was trippled to $21,000 for the purchase of new homes or apartments, and $14,000 for an existing home or unit. (New South Wales First Home Owners are also entotled to an extra $3,000 if building their new home).

It is not restricted by the purchase price of your first home and it does not depend on your income for your eligibility.

Am I Entitled to the First Home Owners Grant?

To be entitled to receive the First Home Owners Grant, you must be at least 18 years of age (there is no upper age limit) and be an Australian resident. Companies and Trusts are not entitled to the First Home Owners Grant.

The First Home Owners Grant can only be obtained if the dwelling being purchased is a home, unit or an apartment (it must be fixed permanently to the ground). The First Home Owners Grant cannot be used to

assist in the purchase of any semi permanent dwelling or a transportable building like a caravan. It can however be used if you are building your own home or buying an apartment 'off the plan'.

You can not have owned, or been part owner of any dwelling (home, unit or apartment etcetera) where you actually lived in the dwelling for a continuous period of longer than 6 months.

To put this more clearly, if you lived in a home for 6 months (180 days) or more that you have owned either solely or in part, you cannot receive the First Home Owners Grant.

However if the property was (or is an investment property) where you have not lived for more than 6 months (5 months and 3 weeks is fine) you are entitled to the First Home Owners Grant when you buy a home of your own to live in.

For example if you purchased a property for investment purposes and lived there for the first few months to make renovations, you are still entitled to the First Home Owners Grant when you buy your home.

How Do I Apply for the First Home Owners Grant?

The First Home Owners Grant is dispensed with the help of a number of banks and lending institutions with the help of brokers and approved agents (like HunterWide Home Loans).

The First Home Owners Grant Application form can be downloaded from this website along with all the other grant and concession application forms. We also have some other downloads that are restricted to HunterWide Home Loans website visitors and exclusive to our First Home Owners Club members.

If you need help with your First Home Owners Grant application give me a call or pop in to my office, I am happy to oblige. We don't know how long the increased First Home Owners Grant will last, so if you are thinking about a home of your own - it makes good sense to doit NOW!