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The First Home Owner Grant - a simple guide

 
Young couple moving into their new home

Buying your first home can be a complex and, let’s face it, expensive experience. But there is help on hand. The First Home Owner Grant is designed to give a leg up to those making their first step onto the property ladder. Let’s look at how it works.

What is the First Home Owner Grant?

The First Home Owner Grant is a government initiative which offers financial assistance to those buying their first home. It helps thousands of Australians reach their property dreams each year.

While the concept is pretty simple - the government gives you a one off payment towards buying your first home, in practice there’s a bit more to it. There are plenty of conditions, eligibility criteria and a strict application process to follow, and these differ from state to state.

How do I know if I'm eligible?

Each state in Australia has a different way of deciding who is eligible for a First Home Owner Grant (see the links at the bottom of this article for details on who is eligible in the different states). But generally you’re eligible if you are:

  • A permanent resident or citizen of Australia
  • Old enough - the minimum age is typically 18
  • Buying your first residential property and haven’t previously received a grant
  • Buying as an individual and not as a company or trust
  • Applying within 12 months of the property purchase being settled (finalised)
  • Going to live in the property yourself – it’s not available for investment property purchases

If you’re buying a property with someone else (your partner for example) you both need to meet the eligibility criteria.

What kind of property can be bought using a grant?

Each state sets the rules for which types of properties are eligible. Generally, newly built properties, properties requiring extensive renovation and applicants constructing their own home are more likely to be eligible.

There are also often different rules for properties in urban and rural locations. For example, first time owners buying or building in a rural or remote area may be eligible for a larger grant.

As well as this, a maximum property value normally applies. So if the value of the home you’re buying or building is above a certain amount, you may not be eligible for a grant.

But make sure to check what the exact rules are in your state.

How much is the First Home Owner Grant?

The grant amount can vary depending on the state you’re in, the type of property you’re buying or building, and whether it’s in a rural or urban location.

The grant can range from around $7,000 to $25,000 in some circumstances.

What are the rules and eligibility criteria in my state?

Follow the links below to find out the exact eligibility, conditions, and applications process in your state.

Australian Capital Territory (ACT)
New South Wales (NSW)
Northern Territory (NT)
Queensland (QLD)
South Australia (SA)
Tasmania (TAS)
Victoria (VA)
Western Australia (WA)

More help for first home owners

If there’s any other aspect to buying your first home that you’d like to know more about, we can guide you through it. Whether it’s help with a loan application or pre-approval, or just discussing your plans with an expert, our Home Loan Specialists are here to support you along the way.

Connect with a specialist

Important information: Please note that this is only intended as a general guide in relation to issues you may want to consider when looking at buying a property. It is not intended to be an exhaustive list of all relevant issues and you should take into account your own particular circumstances, and obtain independent expert advice where needed, before proceeding.

Aug 24, 2018 | Found in: news, homeloan, lending,
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