First Time Owner Loans & Grants – getting a foot in the door
When you’re in the market for your first home, you’ll want all the help you can get. So, start by checking if you qualify for a First Home Owner’s Grant (FHOG) (previously the first home deposit scheme)? Find out how much you could get and how much can you spend on buying your first home.
We’ll help you at Real Simple Home Loans. In real simple language, we’ll explain first-time homeowner grants and guide you through how to apply!
Eligibility
Before you go through the process of applying for the First Home Owner’s Grant, it’s worth checking if you’re eligible:
If you answered ‘yes’ to all the above, then you could well qualify for an FHOG.
Property Types & Price Caps
FHOGs are granted to people who are purchasing a ‘new’ home. What does that mean exactly?
A new home is classified as a newly built property that has never been lived in, or a substantially renovated home.
The dollar amounts for the FHOG vary from state to state.
If your ‘new’ property fulfills the above, then you can access up to $7000. You may also get stamp duty concessions depending on your household income.
The Revenue ACT website can clarify the finer details for you.
Applicants can get access up to $10 000 if they’re purchasing a renovated house for less than $600 000, or a newly built property for less than $750 000.
The Revenue NSW website has more details, such as the zero stamp duty package.
Home buyers in the NT can be eligible for a $10 000 cash grant. Check the Northern Territory Government website for more details.
In Queensland, you can apply for $15 000 when you’re buying a home for less than $750 000.
There are also stamp duty concessions available. Check the Queensland Government website for more details on eligibility.
First home buyers in SA can apply for $15 000 on homes valued up to $750 000. You can find out more at the Revenue SA website.
First home buyers who match the criteria can be eligible for a substantial $30 000. Find out more on Tasmania’s First Home Buyer website.
Victorians may be eligible for $10 000 on properties valued up to $750 000.
The First Home Owner’s page, will help you find more information, such as stamp duty exemptions or discounts.
Home buyers out west are eligible for $10 00 for the purchase or construction of a new home. Plus, they’re exempt from stamp duty for houses valued up to $430 000 or vacant land valued up to $300 000. Find out more here.
Before You Buy
We’ve got some real simple answers here to help answer some of your burning home loan questions.
If you’re struggling to get a 5% deposit for a home loan, the great news is that the Australian Government will guarantee the other 15% of the deposit for you. This can help you get into your first home sooner by removing the Lender’s Mortgage Insurance you would otherwise have to pay with a less than 20% deposit.
Generally, lenders will expect applicants to have at least 5% deposit of the sale price. However, depending on your circumstances they may require more, up to 20%. If this is the case, you’ll be paying Lender’s Mortgage Insurance.
It’s not a set amount, however, the value of the property cannot be more than $750 000 and you cannot borrow 100% of the purchase price.
You need a minimum of 5% deposit for a loan, unfortunately, that means you’ll be paying Lender’s Mortgage Insurance (LMI). However, with some assistance, such as the FHOG, then you’ll have the 20% often needed and avoid paying LMI
As an example, if you can purchase up to $750 000, and you had a 20% deposit, the most you can borrow would be $600 000.
This amount does not take into account paying Stamp Duty.
Why Choose Us?
After many years of working together in the home finance market, we’ve gleaned a few insights. Prospective clients like to work with decision-makers, they don’t like being handed down the line. (In our case, that’s impossible because there is no “down the line”). They really dislike excessive time-wasting and cost. They want answers, real simple and real fast.
So, we decided to pool our expertise and offer the home loan market a refreshing new approach, where we do all the hard work, and you enjoy the rewards.
We have your best interests at heart, our expert team negotiates on your behalf to find you the best deals possible.
Happy days!
Learn More to Get in the Door
You can learn all about home loans, and buying and selling properties, right here at Real Simple Home Loans. View our products, read some of our blogs, and drop us a line to ask any burning questions you may have. We promise to deliver answers, real fast!