Government Grants - Do You Need to be an Australian Citizen?

Government Grants - Do You Need to be an Australian Citizen?

Buying real estate in Queensland means that you may be eligible for grants and concessions offered by the Government, however, many Australians do not qualify because they are not Australian Citizens. Below we will outline what the available grants are and who is eligible.

First Home Loan Deposit Scheme

In January 2020, the National Housing Finance and Investment Corporation released 10,000 scheme places in the First Home Loan Deposit Scheme. The scheme allows eligible first home buyers to purchase a property with a deposit of as little as 5% and not have to pay Lenders Mortgage Insurance (LMI). A further 10,000 places in the scheme were released on 1 July 2020. The eligibility criteria that need to be met are:

  • You must be an Australian Citizen who is 18 years old or older. If you are a couple, you are both required to be Australian Citizens
  • Singles with a taxable income of up to $125,000 per annum, and couples with a taxable income of up to $200,000
  • You have a minimum of 5% of the value of the property you are wanting to purchase saved as a deposit
  • The purchase price of the property is less than $400,000
  • You must occupy the home as your primary place of residence
  • You must not have previously owned or had an interest in a property in Australia either separately or jointly

First Home Buyers Grant

In June 2020, the Queensland Government announced an increase in the First Home Owners Grant (FHOG) to $20,000 for applicants purchasing or building a brand new home in regional Queensland (previously $15,000). Outside of regional Queensland, the FHOG remains as $15,000. The FHOG is only available to Australian Permanent Residents if they are purchasing a property with an Australian Citizen. Other eligibility criteria include:

  • You must be at least 18 years old
  • You must not have previously owned or had an interest in a property in Australia either separately or jointly
  • You must be buying or building a brand-new home
  • The total value of the house (including land) is less than $750,000
  • You must move into the home as your primary place of residence within 1 year of the complete transaction and live there for a minimum of 6 months

Home Builder Grant

In response to the Coronavirus Pandemic, the Federal Government released a time-limited grant to assist the construction industry in its recovery. The Home Builder Grant will provide eligible applicants with a grant of $25,000 to build a new home or substantially renovate an existing home. You do not need to be a first home buyer to access this grant, but you do need to be an Australian Citizen. Additional eligibility criteria include:

  • You must be at least 18 years old
  • You are not acting as a trust or a company in the transaction
  • Singles must earn less than $125,000 based on their 2018-2019 tax return or later, and couples must earn less than $200,000 per annum combined based on their 2018-2019 tax returns or later
  • You must enter into a building contract between 4th June 2020 and 31st December 2020. Construction of the property must commence within 3 months of the contract date
  • If you are building a new home than the property value (including land) must not exceed $750,000.

In summary, the eligibility criteria for all the Government grants require you to be an Australian Citizen. The only Grant available to Australian Permanent Residents is the First Home Buyers Grant, and you must be purchasing a property with an Australian Citizen to access this grant.

For further information regarding home loans and grants, get in touch with our mortgage brokers on 4052 0751.