First Home Owners Grant (FHOG)

If you're a first home buyer, you probably have a million questions running through your head - how much do I need for a deposit? Do I qualify for a first home owner grant? What interest rates are available? Do I want a fixed or variable loan? - The list is endless.

The broad principles of the first home owner grant are:

The current $7,000 FHOS is administered and funded by the States and Territories.
The Commonwealth will provide funds to the States and Territories for the First Home Owners Boost.
This First Home Owners Boost is still available in some states and will be effective from the 1 October 2009 until 30 June 2010.

Factsheet

Below is a table of what you might expect from the First Home Owners Grant in your State:

State	Established homes only	Newly Constructed Metro	Newly Constructed Regional
ACT	$7,000	$7,000	$7,000
NSW	$7,000	$7,000 + $3,000 = $10,000	$7,000 + $3,000 = $10,000
VIC	$7,000 + $2,000^ = $9,000	$7,000 + $11,000^ = $18,000	$7,000 + $11,000^ +$4,500= $22,500
QLD	$7,000	$7,000	$7,000
NT	$7,000	$7,000	$7,000
SA	$7,000 + $4,000*# =$11,000	$7,000 + $4,000*# =$11,000	$7,000 + $4,000*^# =$11,000
TAS	$7,000	$7,000	$7,000
WA	$7,000	$7,000	$7,000

^ Value of property must not exceed $600,000

* Available for property/constructed property with market value of $400,000

# Reduced by $8 per $100 for property/constructed property with market value between $400,001 - $450,000

Stamp Duty Concessions
In addition to these amounts, you may also be entitled to a number of stamp duty concessions. Stamp duty concessions have also undergone changes over the last year with the aim of encouraging home buyers into the market. The New South Wales government and Queensland government offer stamp duty concessions on properties worth up to $500,000. Other States and Territories already have in place stamp duty exemptions and concessions that are based on the property value.

Eligibility
The eligibility criteria for the FHOB is the same as for the FHOS. That is, in general, the following must be met:

Applicants must be 18 years of age or over
Both the owner and their spouse/partner must not have owned a home previously (this means that if either one of the applicants have previously owned a home, then they will both be ineligible)
The home must be the principal place of residence for at least one applicant for a period of 6 months within 12 months of completion or settlement.
Eligible first home owners have 12 months from either the date of settlement or date of completion to apply for the FHOS.

Eligibility for FHOB:

Eligible applicants must purchase a home between 1 October 2009 and 30 June 2010
For established homes, this means entering into a contract to buy (referred to as exchange)
For newly-constructed homes, this means entering into a contract to build a house. The contract must be for building to commence within 6 months and must be completed within 18 months of commencement.

Payment

For a newly established house, the FHOS (and FHOB) is paid (in a lump sum) to the first home buyer upon completion, that is, when a certificate of occupancy is provided.
For an established house, the FHOS (and FHOB) is paid (in a lump sum) upon settlement (ie when the conveyance is completed).
The grant can be paid directly into the first home buyers account.

The last thing a first home buyer needs is to be running around looking for answers to these questions. Speak to Refund Home Loans, and you won't have to - our brokers can offer a first home buyer kit that covers all these topics, including the first home owner grant, so call us on 1300 REFUND or enquire today.

To obtain more information about the First Home Owner Grant, please select the state or territory in which you intend to purchase your home: