What You Need To Know About The First Home Owners Grant
With the price of houses constantly on the rise, young people are finding it increasingly harder to actually purchase a home. Luckily, the Australian government has set-up the first home owners grant, which is designed to help first-time home buyers when it comes time to make that important decision. There’s a catch, however. With this grant comes a number of conditions and guidelines that must be adhered to in order to obtain the grant in the first place. Our Werribee real estate experts have put together this blog to explain the ins and outs of the grant.
What does the grant involve?
The First Home Owners Grant (FHOG) is $10,000 that will go towards the purchase of your first home. The grant is increased to $20,000 if you’re purchasing a house in regional Victoria. You will only be able to receive this grant if the house you’re buying is under $750,000, however. If the house is below $600,000 then you will not have to pay stamp duty. If the house or residential property is between $600,001 and $750,000 then you will have to pay stamp duty but at a discounted concession rate. Some of the other conditions of the house are that:
- It must be less than five years old
- It must be the first sale of the house as a residential property
- It cannot be purchased for investment purposes or as a holiday home
The FHOG does include houses being built, however, as well as houses being purchased.
Applying for the FHOG
Whichever bank is providing your funding will generally lodge the FHOG on your behalf. Make sure to double check that they’re lodging it for you. It is important to go over all the details when going through such a complex and important process such as this. Alternatively, you can lodge your application with the State Revenue Office if an agent from your bank is not lodging it. Simply download the form, fill it out in either blue or black ink and then mail the original document to the State Revenue Office.
Are you eligible?
As well as conditions surrounding the house you can purchase, there are also a number of compulsory conditions you must fulfil to be eligible:
- Neither of the applicants has previously received an FHOG in any state or territory.
- Neither of the applicant’s spouses can have:
- Received an FHOG in any states
- Owned a home or residential property after the 1stof July 2001
- Lived in a home that you or your spouse owned/part-owned after the 1stof July 2001 for six-months continuously
- Applicants must be 18 years of age
- At least one resident must be a permanent resident or Australian Citizen
- One of the applicants must occupy the home for a minimum of one year continuously within 12 months of the eligible transaction being completed.
- A contract must’ve been entered either prior to or after the 1stof July 2013 to purchase or build a new home.
If you’re lodging through an approved agent – such as your bank – then you must only provide a copy of your primary identity (category 1) such as a passport or birth certificate and a copy of your citizenship document. If you’re lodging directly through the State Revenue Office, then you must provide a copy of four separate documents – one from each category:
- Category 1 – Primary identification document
- Birth certificate
- Citizenship certificate – if you’re not an Australian citizen then you must provide evidence of your permanent residency or permanent residence visa.
- Category 2 – Photo and signature identification
- Australian driver license
- Firearm license
- Proof of age photo ID
- Category 3 – Evidence that the applicant and their spouse reside in Australia
- Medicare card
- Motor vehicle registration
- Centrelink or Department of Veterans’ Affairs card
- Category 4 – Evidence of the applicant and their spouses’ current residential address
- Utility documents
- Building or contents insurance policy
- Rate notice
- Mortgage papers for the property that you’re claiming the FHOG
- Electoral enrolment card
- Lease or tenancy agreement
- Work notice/reports/reference
- Taxation assessment notice
Looking for real estate in Werribee?
It’s not easy selecting your first home, that’s why Red23 is the best real estate firm in the Werribee area. Our professional and friendly agents will gladly help you make the best decision when it comes to selecting your first home in Werribee.
If you would like to know more about our Werribee real estate firm, the First Home Owners Grant or how we can help you purchase your first home, then please give us a call on 03 8372 2122 or send us a message through our website.