First home buyers in Victoria are about to get a little more help getting onto the property ladder, as the First Home Owner Grant doubles from the start of the financial year. Elsewhere in Australia, first home buyers can access their own State and Territory First Home Owners Grants. Here’s a closer look at the Government financial help available in each region.
A win for Victoria
On July 1 this year, the First Home Owners Grant in Victoria will double from $10,000 to $20,000. Provided you’re a first-home buyer building or buying a new house in country Victoria valued under the $750,000 cap and you meet the eligibility criteria, you could be one of the 6,000 people the government expects to take up the cash.
It’s a major boost to the state’s country towns, which will make it easier for young people in regional Australia to build homes in their own communities. It’s also expected to create jobs in the local construction industry.
First Home Owners Grant
While the First Home Owners Grant originally provided a one-off lump sum to first home buyers buying established properties, today all States require the property being purchased to be new or substantially renovated.
Each State and Territory has its own eligibility criteria that buyers will need to meet to qualify for the First Home Owners Grant in that area. While these criteria may differ slightly from State to State, in all States, buyers cannot have already accessed a First Home Owners Grant, must be over 18 years’ old, must be Australian citizens or permanent residents, must intend to live in their home for a specified period, and must be buying or building a new property under the house value cap for that region.
Here’s an outline of the First Home Owners Grant in each State and Territory.
Australia Capital Territory and Tasmania
On January 1, 2017, the ACT First Home Owners Grant was reduced to $7,000. The total value of the new property being bought or built must be under $750,000.
Northern Territories
In the Northern Territories, the First Home Owners Grant currently provides $26,000 to eligible first home buyers buying or building a new home. At present, there is no house value threshold in Northern Territories.
New South Wales
For first home buyers in New South Wales, the First Home Owners Grant is $10,000 – the value of the property must not exceed the First Home Owners Grant cap of $750,000.
Queensland
Eligible first home buyers who sign a contract before 30 June 2017, could receive $20,000 in First Home Owners Grant, but this amount will reduce to $15,000 from 01 July 2017. The house value cap in Queensland is $750,000.
Western Australia
To help first home buyers in Western Australia get into their first home, the WA First Home Owners Grant provides $15,000 to eligible first home buyers purchasing or building a new home valued under $1m (north of the 26th parallel) or under $750,000 (south of the 26th parallel). From 1 January 2018, the First Home Owners Grant in Western Australia will be reduced to $10,000.
South Australia
In South Australia, the First Home Owners Grant is $15,000, applying to the purchase or build of a new residential property. This could be a house, flat, unit, townhouse or apartment that meets the local planning standards, anywhere in South Australia, with a market value of $575,000 or less.
Talk to someone who understands
Grants and Concessions can change without much notice. Before you buy your first home, check you meet eligibility criteria and find out what you qualify for. In each region, there are several other entitlements that first-home buyers can apply for, so it’s worthwhile getting advice from your Mortgage Express mortgage broker to find out if you qualify for any of these.
Disclaimer:
While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Finservice Pty Ltd (Mortgage Express) for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication.
A Disclosure Statement is available on request and free of charge.
Finservice Pty Ltd (Mortgage Express) is authorised as a corporate credit representative (Corporate Credit Representative Number 397386) to engage in credit activities on behalf of BLSSA Pty Ltd (Australian Credit Licence number 391237) ACN 123 600 000 | Full member of MFAA | Member of Credit Ombudsman Services Ltd (COSL) | Member of Choice Aggregation Services.
