What is FHOG?
The First Home Owner Grant (FHOG) is an initiative by the Australian government to help first home buyers get their dream home. Although it’s a nationwide mandate, every state has its own policies for the grant. It’s a one-off payment given to eligible candidates.
The minimum grant you can receive is $10,000. However, different states may offer more and may follow different criteria. An example: the State of Queensland gives a bigger grant to those living in regional areas. On the other hand, New South Wales has a property price cap for eligible home buyers.
Who are eligible for the FHOG?
To be eligible for the grant, you:
- need to be at least 18 years of age
- need to be an Australian citizen or permanent resident
- it can’t be a holiday home or an investment property
- must not have received the FHOG in the past
- need to move into your house within 12 months after settlement or completion of the house
- need to live in it for at least six months.
These are the minimum requirements, however, it changes per state, so it’s best to check your state’s revenue office. You can check out stamp duty concessions, too, as some states offer exemptions for first home buyers.
What kind of properties are allowed under FHOG?
You can use the grant for:
- buying an off-the-plan property
- building a home on vacant land
- buying an established home where all or most of the building has been renovated, fixed or replaced.
These, again, are the minimum requirements. Every state may have a different rule and may impose a property price cap.
How to apply for FHOG?
You can apply directly to your state’s revenue office. You can also fill out the paperwork with the help of your chosen lender. Either way, you need to prepare:
- documents that confirm your identity and your eligibility; and
- a copy of the contract of sale (or contract to build if you’re constructing a new home).
When do you receive the grant?
The grant is usually given at settlement. This means that you have to work on the deposit required for which you cannot use the grant.
What are the rules per state?
You can chek eligibility requirement and other details per state here:
- Australian Capital Territory
- New South Wales
- Northern Territory
- South Australia
- Western Australia
Got questions about the grant? Call us now, we’ll gladly assist you.