First Home Buyers Grants in Australia
It is the joy of every person to own a place they can call home. What is usually tricky is how to get to the home without having to go through a lot of financial challenges. In most instances, people go for mortgages or a Home Loans. Wondering what the difference is? A home loan is a loan given to you to buy or construct a new home. On the other hand, a mortgage is a loan offered to you against a property you already have.
Taking Home Loans is not always the best option, especially if you are a first-time homebuyer. If you are not comfortable with the loans, why not try taking a grant? There are three types of first home buyers grants in Australia, and they include;
The First Home Owner Grant (FHOG)
The Australian government gives this grant to people who have never owned a home. Whether you are purchasing an already built house or constructing it yourself, the government will provide you with this grant to encourage you to buy the property. Though the eligibility differs from state to state, some states will have lower rates and exempt the grants from stamp duty.
The First Home Loan Deposit Schemes
Under this program, you can access a low deposit Home Loans each year. In most cases, you will have to save up to 5% of the property’s value for the government to give you this grant.
The HomeBuilder Scheme
The government started this scheme to help people combat the impact of the COVID-19 pandemic. The grant is given to people seeking to build a new home or plan to remodel their already existing home. At the moment, this grant could go up to $15,000.
What are the eligibility criteria to receive a first homeowner grant?
1. You must be an Australian citizen or a permanent resident. Such grants are not given to immigrants who are non-permanent residents in Australia.
2. You must not be minor. Any beneficiary must have attained the legal age.
3. You must be building or buying a new home. The home should not exceed $750,000 in value, and you must be ready to move into the new home within one year of purchase. This is one of the conditions that must be met in Queensland. The law requires that you live in the house for six months. If you happen to move before this time-lapse, you will be required to pay back the grant.
4. You shouldn’t have owned property in Australia that you formerly stayed in. You must prove beyond measurable doubt that you have never owned a home. If you are applying with another person, say a couple, the other party shouldn’t have owned property that they ever lived in.
5. If you are interested in buying a recently refurbished house, it shouldn’t have been lived in after the renovation. It should also be the first time it is being sold after renovation.
6. First Home Owner Grant is only given to individuals and not companies or organisations.