When you’re buying your first home, every dollar counts. So you may be wondering if you’re eligible for the First Home Owners Grant (FHOG) of $15 000.
You’ve probably heard of FHOG – a national scheme originally introduced on 1st July 2000. Twenty years later and the scheme is still around, but it has undergone many changes through this period. It now only applies for Brand New Homes or those who have undergone significant renovations (and we’re talking major structural work, not just new carpets)
Navigating the requirements for this government scheme can be confusing as every state is different and the criteria and amounts payable have changed over the years. Don’t worry though, we’re here to help you through it every step of the way. As our office is in QLD, we thought we would concentrate on the Sunshine State. Below is a quick guide, which should answer a few of your questions.
What is the QLD First Home Owners’ Grant?
In 2018, the Queensland Government changed its grant for first home owners who are buying or building a new home. Previously known as the Great Start Grant, those eligible will receive a one-off payment of $15,000.
Can I get the QLD First Home Owners’ Grant if I buy an established home?
No. The $15,000 grant is only available for newly constructed or substantially renovated homes purchased on or after 1 July 2018.
How do I know if I’m eligible?
To be eligible for the QLD FHOG you must be:
- An Australian Citizen or permanent resident (or applying with someone who is)
- You or your spouse must not have previously owned property in Australia
- You must be over 18
- You must be buying or building a brand new home valued under $750 000.
- You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
What defines a brand new home?
A new home is a brand new dwelling that has not been previously occupied as a place of residence or sold as a place of residence. This may include a:
- home that is a substantially renovated home (in certain limited circumstances).
- house that has been moved from one site, and fixed as a home to a different site, so long as it has not been occupied or sold as a place of residence since being fixed to the new site.
Types of dwellings include houses, units, duplexes, townhouses and granny flats built on a relative’s land.
If I’m eligible, will the $15,000 count towards my deposit?
This really depends on the bank that you are getting your mortgage through. Most banks require a deposit of at least 5%, excluding the FHOG. When you receive the money also depends on the type of property you have purchased and the lender you have gone with. However, that’s our job to know the policies of each of the banks and to help you to understand all the terms and conditions.
If I’m eligible for the FHOG of $15, 000, do I need to pay tax on it?
No, you don’t pay tax on the amount you receive and it’s not means tested either.
If you have any questions about buying your first home please give MC Mortgage Solutions a call. We’re here to help!