Almost 20 years ago, Australia launched a national scheme to assist first timers to get into a home of their own. Under the scheme, first home buyers who purchase or build a residential property to live in, receive a one-off grant which is not means-tested. The First Home Owner Grants - differ between states with amounts varying from $5,000 in some states to $26,000 in the Northern Territory. The First Home Owner Grant - or short FHOG - applies to new homes and apartments only. To be eligible for the grant, applicants have to be over the age of 18 and Australian citizens or permanent residents. While the First Home Owner Grants differs in each state and territory, generally, recipients of the assistance are required to live in the property for a period of at least six consecutive months after the purchase.
There are different ways of applying for the FHOG: either by lodging the application personally through a relevant state authority or by asking the home loan provider to lodge the application. The grant is usually paid to the lender at the time of settlement and can be used to reduce the home loan or added to the deposit which has to be saved up to purchase a property in the first place.
First home owner grant is available to eligible applicants. Source: Getty Images
Real estate agent Raghad Misho acknowledges that some financially stressed first home buyers are breaking conditions of the grant by never living in their new property but renting it out instead. He warns that those who do not comply with the rules will have to pay the grant back.
The First Home Owner Grant varies across Australia.
In New South Wales you can apply fora $10,000 First Home Owner Grant for purchases of new homes up to $600,000.
In Queensland it’s $15,000 for eligible first home buyers who are buying or building a new home up to the value of $750,000.
In the Northern Territory a whopping $26,000 is offered for first home buyers, buying or building a new home or an established home. And no purchase price limit applies.
In Western Australia, eligible first home buyers can receive a First Home Owner Grant of up to $10,000 for buying or building a new home valued up to $1 million.
In South Australia a $15,000 grant is on offer for new residential dwellings only, up to the value of $575,000.
In Victoria first home buyers buying a new home in regional Victoria are eligible for a grant of up to $20,000, or up to $10,000 for homes in cities. The maximum purchase price of eligible new homes is $750,000.
In Tasmania, the First Home Owner Grant is $20,000 for buying a new home.
And in the ACT, first home buyers in our national capital are offered a $7,000 First Home Owner Grant for a property valued at up to $750,000.
How to apply for a First Home Owner Grant? Source: Getty Images
