The Queensland Government has opted to extend the cut off date for the First Home Owners’ Grant to include contracts signed up until 30 June 2018.
What is the First Home Owners’ Grant?
The First Home Owner’s Grant is a state government funded program designed to increase home ownership across the state. In Queensland, home buyers who meet the eligibility criteria will receive $20,000.00 towards the cost of purchasing/building their first home.
Are you Eligible for the First Home Owners’ Grant?
If you are an Australian citizen or permanent resident, over the age of 18, and neither you or your spouse has previously owned property then you might be eligible.
If you are buying an existing property, it must have never been occupied as a place of residence or must have been substantially renovated (i.e. altering foundations, changing structural walls, etc), and the total value of your new home must be less than $750,000.00.
How do I apply?
The Application form is available through the Queensland Government’s first home owners’ website along with full details of eligibility and other criteria.
Can I use the First Home Owners’ Grant as my deposit?
In short, yes. But you also need to be able to show you can afford the repayments, and you must meet all the usual lending criteria such as having a good credit history. It is best to speak to your mortgage broker as they will know which lenders are “friendlier” to first home buyers and can potentially save you a lot of running around.
Are there any other benefits to being a first time home buyer?
The Queensland Government’s Office of State Revenue offer a concession on the amount of transfer duty payable on the purchase of both your first home or vacant land on which you intend to build your first home. In order to qualify for the concession, you must have never owned residential land anywhere in the world and have never received the concession before.
The reduction in transfer duty may allow you to reduce the amount you need to borrow which, in turn, may result in a better loan to value ration (“LVR”) and therefore help you avoid the need to pay mortgage insurance.