Are You Eligible For The First Home Owners Grant FHOG? And How To Apply For It?
After being closed for so long due to the pandemic, Australia is finally ready to open its doors, both to investments and a rolling economy. And the First-Home Owner Grant (FHOG) scheme will play a defining role in financially strengthening the citizens of Australia and making them independent.
Introduced in 2000, the scheme aims to provide financial assistance, i.e., necessary funds, to people purchasing their first home in Sydney or anywhere else in Australia. It’s accessible nationwide; however, the eligibility and grants differ as one moves across the country.
The following article focuses on the FHOG scheme, eligibility criteria, application procedure, and a couple of frequently asked questions to clarify the concept in detail.
What Is The FHOG Scheme?
The FHOG scheme is a first-time homeowner grant that offers one-time payments authorized by the Australian government to assist and encourage first-time homebuyers to build or buy a new residence. Candidates are only eligible for the FHOG if they use the residential property as their primary residence.
The grant aims to provide first home buyer assistance to those who apply. It is a one-time payment of $10,000 or less (depending upon the requirement) and entails an easy procedure. One can apply for this scheme when ready to finance the purchase of their future home. However, applicants need to ensure that the bank or the financial institution providing the rest of the loan is an approved lender.
An important thing to note about this grant is that it is available only for newly purchased homes or residential land awaiting construction. If a home is sufficiently renovated, it may be considered a new home. But that depends on a case-by-case basis.
For instance, one can not be eligible for the First Home Owners Grant if the house is already established or for renovations to a previously existing home.
What Sort Of Houses Does The Scheme Apply To?
As mentioned before, the assistance scheme applies to new buyers if they are buying:
- A new home
- An existing home
- An empty plot of land and constructing a house on it
The eligibility changes from state to state depending on the differing legislatures. For instance, for first home buyers in Sydney, there are other ways to avail this grant. One can apply for the FHOG if the property was bought between 1 July 2017 and 31 July 2020 and the new home’s value is less than $650,000.
There are also concessions available if the value of the:
- New home falls between $800,000 and $1,000,000
- Existing home is between $650,000 and $800,000
- Land is between $400,000 and $500,000
What Are The Personal Eligibility Stipulations?
On top of the financial stipulations, there are also plenty of personal stipulations. These are:
- There is only one grant available per house. So, if you are looking to buy a place with your partner, only one of you can apply for the grant.
- This grant is only available to an individual. If you are a part of a property investment company, it is unlikely that you will be eligible for the grant. This is because it is aimed at helping Australians buy their first home and put down roots.
- The minimum age requirement is above 18 years o.d. Anyone under the age of 18 will automatically be disqualified.
How Do I Apply For The FHOG?
The application process for first-time homeowners grant is pretty hassle-free and can be done online. Just follow the steps given below to apply correctly:
- Check your eligibility as per the criteria set by your state legislature.
- Get all the necessary documents in order. This includes bank details, land details, proof of identity, etc.
- Complete the application available at https://www.wa.gov.au and ensure you fill all the particulars correctly.
- Lodge the application.
The process is pretty cut-and-dried, but be careful when checking your eligibility criteria. Ensure to file it under the right category; otherwise, the application might get rejected. The approval and disbursement process can take up to a few weeks.
Frequently Asked Questions
- Is It Available To New Zealanders?
A common question asked about the first-time homeowners grant is whether New Zealanders can apply for it. The answer is yes! This is because all New Zealanders have a special exemption in the FHOG scheme.
- How Long Does It Take To Receive The Money?
It takes 3-6 weeks on average for the money to get credited into your account. This is on the condition that all the criteria have been met and the form has been filled out accurately.
Conclusion
Consulting a property advisory firm like Quarter-Acre can help you understand the nitty-gritty of FHOG and other real estate schemes put forward by the Australian government. With their experts backed up by solid data and research, buying property in Sydney or anywhere in Australia will no longer be just a dream.
