Mortgagebroker : Australia's First Comprehensive Mortgage Broker Directory

If you're saving hard for a deposit for your first home, make sure you familiarise yourself with the grants and assistance available from the Government - State and Federal - which may give you an extra cash injection and help you make your purchase that little bit sooner.

FIRST HOME OWNERS GRANT 

To offset the impact of the introduction of the GST, the Commonwealth requested that the States and Territories assist first home buyers through the establishment of the First Home Owners Grant (FHOG).

The broad principles of the grant are:

• Eligible applicants from 1 July 2000 are entitled to a one-off $7,000 payment.
• Eligible applicants must be natural persons who are Australian citizens or permanent residents, who are buying or building their first home in Austrialia.  (Requirements vary between juristictions regarding the number of applicants who must be an Australian citizen or permanent resident and how old an applicant must be).
• To qualify for assistance, neither the applicant nor theri spouse (or de facto) must have owned a home prior to 1 July 2000, eithre jointly, separately or with some other person.
• Neither the applicant nor their spouse (or de facto) must have owned and occupied a home after 1 july 2000.
• Neither the applicant nor their spouse (or de facto) must have claimed this grant previously.
• Entering into a binding contract or comencement of building, in the case of owner-builders, must have occured on or after 1 july 2000.
• An eligible home will be located in Australia and will be a new or established house, home unit, flat or other type of self contained fixed dwelling that lawfully can be used as a place of residence within 12 months of settlement or completion of construction of the home.  (There are minimum periods of occupancy required by jurisdictions).
• Application for the grant must be made within 12 months of completion of construction or settlement of the home.
• Assistance will not be means tested.
• There is no tax payable on the grant.
• Joint applicants will be restricted to a single application for a single property and only one payment of $7,000 will be made.

If the consideration of the home is less that $7,000 then the grant amount paid to the applicant will equal the consideration.

The First Home Owners Grant is available to all who qualify according to the above principles regardless of income, assets, savings or the price and location of the property you wish to buy.

If you would like more information on the FHOG, you can visit the FHOG website, or your States Office of State Revenue website.  These Web addresses can be found in the 'Resources' area of MortgageBroker.com.au.

TRANSFER AND MORTGAGE DUTY EXEMPTIONS AND REBATES

As a first home buyer you may also qualify for exemption or discounts to mortgage and transfer duties.  The discount or exemption amount will depend on the State in which you live, and the purchase price of the property.  Some States also offer duty relief benefits for first home buyers.

To find out what you are intitled to, visit your State Revenue website.  These can be found in the 'Resources' area of MortgageBroker.com.au.

DEFENCE HOME OWNERS SCHEME

The Defence Home Owners Scheme was introduced in 1991 to assist eligible members and ex-members of the ADF to purchase their own home.  This is done by providing a subsid on the interest of a home loan borrowed from the approved lender.

There are legislative requirements that an eligible person must meet before payment of the subsidy can commence.  The amount of subsidy you are eligible for will vary depending on the length and type of your service and whether you are still in active service or have been discharged. 

For more information go to the Defence Homes Australia link in the 'Resources' area of MortgageBroker.com.au.

SPECIAL NEEDS

If you have special needs, a disability, are of Aboriginal or Torres Strait Islander descent, or have a low income, you may be entitled to assistance from your State Government.  For more information contace your State Government, or visit their website which can be found in the 'Resource' area of MortgageBroker.com.au.