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Using the First Home Owner Grant to Buy a Home

April 13, 2012 | Comments: 0 | Views: 171

If you've never owned a house before, you may be eager to get an Australian mortgage started to fulfill that dream of ownership. However, be sure that you don't overlook the many government grants that are available to Australian buyers. One of the most famous of these is the First Home Owner Grant. This is a one-time payment from the Australian government of $7,000 toward the cost of a house for a buyer who has never owner a home. The grant can be used for a pre-existing home or used toward the cost of building a home.

Qualifying for the First Home Owner Grant

To qualify, everyone who will be an owner of the residence, often two spouses, must be first-time homebuyers. At least one of the buyers must be a citizen or permanent resident of Australia. The grant is not available for a company buying a house or investment property. It is not available to individual buyers who will not be living in the property within one year of purchasing it, and buyers must live in the house for at least six months continuously.

There are maximum property prices that render buyers of some high-priced properties ineligible. Though Tasmania doesn't have a maximum cap on eligible property prices, every other state and territory does. The maximums are as follows:

  • Queensland- $750,000
  • Victoria- $750,000
  • New South Wales- $835,000
  • Australian Capital Territory- $750,000
  • South Australia- $575,000
  • Northern Territory- $750,000

In Western Australia, the maximum is divided by geography. Residences located north of the 26th parallel have a maximum of $1,000,000 to qualify. Ones located south of it have a cap of $750,000. There is no maximum income for qualifying.

Other Grants for First-Time Home Buyers

Depending on your state or territory, you may be eligible for a host of other grants as well as tax concessions and other benefits.

  • In Queensland, up to $15,525 is available for residential properties priced up to $509,999.99.
  • In Victoria, the state government offers a $13,000 First Home Bonus, and another $6,500 may be available depending on the location of the property. Houses up to $600,000 are eligible.
  • In New South Wales, stamp duty can be waived and various grants and concessions are available for residences valued at up to $500,000.
  • In Australian Capital Territory, first-time buyers of properties up to $470,000 can have their stamp duty waived. This concession comes with a maximum income limits that depend on family size.
  • In South Australia, buyers may be eligible for an $8,000 First Home Bonus Grant for homes valued at up to $400,000. Houses priced higher may be eligible for a decreased grant amount.
  • In the Northern Territory, a stamp duty concession is available as well as a $10,000 grant for a new construction that is valued at up to $600,000.
  • In Tasmania, several duty concessions are available.
  • In Western Australia, properties up to $500,000 are exempt from stamp duty and grant bonuses of up to $7,000 are available.

Use our home loan comparison software to find out how much you can save by getting the best home loan rate on your Australian home loan.

Source: EzineArticles
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