The Federal Government introduced the First Home Owners Grant (FHOG) to help first home buyers offset the increased cost of constructing a home due to the introduction of GST. The FHOG is offered in all Australian States and Territories and grants $7,000 to eligible first home buyers for the purchase of an existing home or the purchase or construction of a new home.
State Governments have also introduced initiatives to assist first home buyers enter the housing market. In South Australia, the government has recently changed its grant, with most first home buyers who qualify for the FHOG and building or buying a new home being offered a bonus grant (FHBG) of up to $8,000. The FHBG will be provided where a first home has a market value less than $400,000.
Does my income or assets affect the Grants?
No, the Grants are not means or assets tested.
What can the money be used for?
An applicant can use the money for any legal purpose. There are no requirements as to how the money is to be used provided you are eligible to receive it.
When will the Grants be paid?
The Grants will be available at settlement for the purchase of an established home. If you are building, it will be paid on the first construction progress payment. Owner builders will receive the Grants on production of a Certificate of Occupancy/Completion.
Who is eligible to receive the Grants?
A first home buyer who fulfils the criteria below:
- At least one of the applicants must be an Australian citizen or have permanent residency in Australia. New Zealand citizens permanently residing in Australia who hold Special Category Visas may also apply.
- In general, no applicant or their spouse/domestic partner can have previously owned a residential property anywhere in Australia. However there are some exceptions to this rule. For further details please contact your Mortgage Adviser or RevenueSA.
- Except in cases of legal disability, applicants must be natural persons; that is, not a company.
- On completion of the transaction everyone who will be an owner of the home is considered an applicant.
- Applicant(s) must be at least 18 years of age at the time of making an application for the Grants.
What kind of property can I purchase?
It can be a single dwelling, duplex, flat, townhouse etc. Any fixed dwelling that is suitable as a residence. The Grants are not available for renovations to an existing building or for the purchase of vacant land. The FHBG is not available to first home buyers purchasing an established property.
How do I apply?
Your Bernie Lewis mortgage adviser will assist you to complete and lodge an application form with the relevant financial institutions, or RevenueSA.
You are only able to complete and lodge an application form with an approved FHOG Participant where you are borrowing funds from that participant, as part of buying or building your home. You need to apply within twelve months of completing the transaction.
