Government Schemes and Initiatives
Home Loan Fundamentals
Government Schemes and Initiatives
Understanding the First Home Owner Grant (FHOG)
06/12/2024
The First Home Owner Grant (FHOG) is a valuable initiative designed to assist first-time home buyers in purchasing or building their first property. By offering financial support, it helps individuals and families step into homeownership with greater ease.
What Is the First Home Owner Grant?
The FHOG is a one-off government grant provided to eligible first-home buyers to either purchase a new property or build
their first home. The grant amount and eligibility criteria vary across Australian states and territories, so it’s
important to check your local guidelines.
For example, in NSW, the FHOG offers $10,000 for eligible applicants purchasing or building a new home valued under
specific thresholds.
How to Apply for the First Home Owner Grant
The application process for the FHOG is straightforward but requires careful attention to
detail:
During the Loan Application:
It’s recommended to apply for the FHOG at the same time you apply for your home loan.
Your mortgage broker or lender can
assist you in completing and lodging the application.
Direct Application:
Alternatively, you can apply directly through your state or territory's Office of
State Revenue.
North Rocks Mortgage Solutions can streamline this process, ensuring your grant application is
accurate
and aligned with
your home loan requirements.
When Is the FHOG Paid?
The timing of your FHOG payment depends on your property type and application method:
Existing Home Purchase: Paid at settlement, reducing the upfront funds required.
Building a New Home: Paid at the first construction progress payment, helping with early building costs.
Applying Through a Lender:Many lenders coordinate grant payments to coincide with settlement or the first construction drawdown.
Always confirm payment timelines with your state or territory's housing or revenue office, as they may differ.
Can Your Partner and You Both Claim the FHOG?
No. If both you and your partner meet the eligibility criteria, only one of you can receive
the FHOG. It’s also
important to ensure your partner has not previously received the grant in Australia, as this
could make you ineligible.
Can You Use the FHOG as Part of Your Deposit?
Yes! The FHOG can be used to boost your deposit, reducing the amount of savings you need
upfront. However, keep in mind:
- The FHOG alone is unlikely to cover your entire deposit.
- If your deposit is less than 20%, you may need to pay Lenders Mortgage Insurance (LMI).
Can You Use the FHOG In Conjunction With Other Government Initiatives?
The FHOG can be combined with other government initiatives, such as:
Stamp Duty Exemptions:
full or partial exemptions for properties valued below certain thresholds.
First Home Guarantee:
allows eligible buyers to purchase with as little as a 5% deposit without paying LMI.
Family Home Guarantee:
assists single parents to buy a home with a 2% deposit.
First Home Super Saver Scheme:
enables you to save for a home deposit through superannuation contributions.
How North Rocks Mortgage Solutions Can Help
Navigating the First Home Owner Grant can feel overwhelming, but you don’t have to do it alone. At
North Rocks Mortgage
Solutions, we specialise in helping first-home buyers:
- Confirm eligibility for the FHOG.
- Understand and access other incentives, like the First Home Guarantee or stamp duty exemptions.
- Complete and submit FHOG applications seamlessly alongside home loan approvals.
Take the First Step Toward Your Dream Home
Ready to make your homeownership dream a reality? Let us guide you through the process and maximise your benefits.Call us or email us to schedule a discovery chat with Cordelia. Together, we’ll tailor a strategy to secure your grant and make your home-buying journey seamless.Let’s turn your dream into a reality—contact us today!
