Are you looking to buy your first home?

You could be eligible for the First Home Owner (New Homes) Grant 

 

What is it? 

A $10,000 First Home Owner Grant (FHOG), available to buyers or builders of a first new home. Eligible homes must be newly built or substantially renovated, not established homes.  

For example, houses, townhouses, apartments, units or similar that have been purchased off the plan, undergone major renovations so as to alter the presentation of the home, or have recently been built, are eligible for the grant.  

 

What are the spending limits? 

For newly built homes, the purchase price must not exceed $600,000. 

 

If you intend to build a home, the value of the vacant land, the value of the comprehensive home building contract, and the cost of any building variations done will be added together. The combined cost must not exceed $750,000.  

 

If you purchase a home that was substantially renovated by the seller, the purchase price must not exceed $600,000.  

 

What classifies as ‘substantially renovated’ and in what scenarios is this accepted? 

  • To be classified as having been substantially renovated, most of the home must have been removed or replaced 

  • The seller, builder or tenant has not lived in the home prior to, during or after renovations 

  • It is the first time the home has been sold since the completion of renovations 

  • If the property was lived in, leased out, or occupied in any capacity, it will not be considered a new home upon sale 

 

Who is eligible? 

  • Each applicant must be over 18 years old 

  • You must be a first home buyer as a person, not a company or trust 

  • At least one applicant must be a permanent resident or Australian citizen 

  • At least one applicant must not have previously owned a home before 1 July 2000 

  • You must occupy your first home as your principle place of residence within 12 months of construction/purchase and for 6 months minimum  

 

For example, you will not be eligible for the FHOG if you have previously received this grant, owned a home or other residential property in Australia before 1 July 2000, or lived for 6 continuous months or more in a home located in Australia that you owned on or after 1 July 2000. You may still be eligible if you purchased a residential property after 1 July 2000 and didn’t live in it for more than 6 continuous months. Australian Defence Force members may be exempt from some of the above.  

 

How to apply? 

If you require the grant for settlement or first drawn down/progress payment, you must lodge your application with the approved agent who is providing you finance. 

 

If you’ve already completed the purchase or construction process you can lodge your application via the FHOG customer portal. 

 

To find out more information or get the process started, call the friendly team at Bob Reus & Co on 95481399. 

Written by Cody Gale - Lending Support Staff

Lisa Keep