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The start of July saw a whole host of changes to the nation's First Home Owner Grants (FHOG).
Blogger: Lisa Montgomery, finance expert, Resi Mortgage Corporation
This could be essential information for anyone interested in taking out a mortgage and purchasing their first property in the near future. These funds can be of great assistance when trying to achieve your real estate goals, especially for young couples hoping to buy their first home together.
What is a First Home Owner Grant?
In Australia, there are a number of opportunities for first home buyers to secure financial help when looking to purchase their first property. The First Home Owner Grant is one of the main grants offered by states across the nation. The amount of the grant offered varies between states, but the basics remain the same: it is financial aid offered by state governments for buyers looking to purchase or build their first home in order to help stimulate the economy and encourage buyers to purchase property.
The scheme was created to help offset higher housing prices and costs following the introduction of the Goods and Services Tax (GST), with the FHOG offering a one-off lump sum payment to aid the purchase of property.
What are the new changes?
The basic changes occurring across the nation vary between the different states. For example, eligible buyers in New South Wales can receive $15,000 funding for new homes valued up to $750,000, while Victorian applicants can apply for a $10,000 grant to help fund the purchase or construction of their new home. Furthermore, Queensland buyers can seek $15,000 to help fund the purchase or construction of property.
There are a number of changes occurring across all of Australia's states. As a first home buyer, it could be worth investigating the options available to you in your local region in order to secure the financial aid on offer.
What are the differences between an established home and a new property?
The main differences that need to be observed when applying for a FHOG across Australia are now concerning whether the property is new or established. Effectively, many of the grants will only apply to buyers looking into either building their own home from scratch or purchasing a recently constructed home that has never previously been occupied.
This is in contrast to established properties, which are defined as previously occupied homes. Furthermore, some states are willing to extend funding to radically renovated homes, where major changes have been made to a large portion of the house.
About Lisa Montgomery
With a career spanning 30 years, Lisa Montgomery is a respected leader, communicator and consumer advocate within the Australian financial services industry and is a regular commentator on Sky News and Sky News Business Channels and a frequent host on the live to air program – Your Money, Your Call. Lisa is currently the head of communications for award winning, Australian non-bank lender, Resi Mortgage Corporation.