First Home Owners' Grant QLD
The First Home Owners' Grant in QLD is a $15,000 lump sum payment paid to first home buyers' when purchasing a new property or building a new property.
The First Home Owners' Grant is payable when purchasing a property under $750,000 in QLD which has never before been lived in or sold as a place of residence at the time of completion. The property must also follow the below guidelines:
|The property should be one of:|
|A house, unit, duplex or townhouse.|
|A granny flat built on a relatives property.|
|A home that has been moved from one place to another including modular or kit homes.|
|A substantially renovated property.|
|The transaction should be:|
|Purchase of a new property.|
Who is eligible for the QLD First Home Owners' Grant
|Eligible First Home Owners' Grant applicants:|
|Should be over 18 years of age.|
|Should be an Australian Citizen or Permanent Resident. If not a Permanent Resident, you may be eligible if applying with a spouse who is.|
|Must not have previously received a First Home Owners' Grant anywhere is Australia.|
|Must not have owned a property previously in Australia unless it's exclusively an investment purchased after 01/07/2000.|
|Must move into the property within 12 months and live in it for 6 continuous months.|
When is the QLD First Home Buyers' Grant paid?
The First Home Owners' Grant is paid at different times depending on which type of transaction you're completing:
- Purchasing a property: the FHOG is paid on the day of settlement when applying through an approved agent (see down the page). It may be a little slower when applying directly with the OSR.
- Building a property: When applying through an approved agent, it can be accessed once the slab is down - this is this first progress payment after the deposit.
- Owner-builder: paid upon completion of the property.
How do you apply for the First Home Owners' Grant in QLD
There are two key methods for applying for the FHOG: through an Approved Agent or directly with the OSR. Either way, you'll need to complete the QLD FHOG Applicaiton form - we usually recommend looking through these upfront as it is very comprehensive in confirming your eligiblity.
Applying through an Approved Agent
The QLD Government have approved a large number of banks as 'Approved Agents'. This allows the lender to lodge & process the FHOG application for you. This allows the funds to be released earlier in all cases, and used as your deposit in some cases. You can find a full list of Approved Agents here.
We can assist you in applying for the FHOG as part of the home loan process.
Applying Directly to the Queensland Revenue Office.
Upon completion of the purchase or construction, you can apply direclty through the QLD Revenue Office's website & upload supporting documents here.
Can you use the First Home Owners' Grant as part of your home loan deposit?
As a general rule, yes - when applying through an approved agent. This makes it a little tricky when using a low deposit as there are home loan options for:
- 5% deposit with non-genuine savings: available through a non-Approved Agent - which means you can't get the $15,000 until after settlement, and therefor can't use it as part of your deposit.
- 5%-6% deposit with genuine savings: available through an Approved Agent - therefore your $15k can be used as part of your deposit, but you must already have 5% genuine savings
In short, we recommend aiming for a 5% genuine savings deposit (or 10% non-genuine savings) and using the FHOG $15k to increase your deposit to make you eligible with more lenders & decrease your Lender's Mortgage Insurance premium.
What is 'Genuine Savings'?
'Genuine Savings' is a term banks use to ensure you have the ability to save a deposit yourself. The vast majority of banks will require 5% genuine savings - including all big banks and the majority of second tier banks.
Genuine savings usually clasifies as funds from the following sources that have been saved or held over a 3 month period.
|Acceptable sources of Genuine Savings:|
|Funds from First Home Super Saver Scheme.|
|Investments: shares, property, bonds.|
|Funds held for 3 months: tax returns, bonuses, gifts, sale of asset (other than property).|
|Equity in property.|
|Unacceptable sources of Genuine Savings:|
|Gifts held for less than 3 months.|
|First Home Owners' Grant.|
|Funds not held in your name.|
Using the First Home Owners' Grant in conjuction with other Government incentives
The First Home Owners' Grant is a separate incentive and therefore can be used with all other Government incentives. Applicants eligible for the FHOG should also be looking at:
|Other First Home Buyer incentives available:|
|Stamp duty concessions: full stamp duty concessions available for first home buyers purchasing for under $500k.|
|First Home Super Saver Scheme: first home buyers can make additional Super contributions then redraw to use for their property purchase.|
|First Home Guarantee: using a 5% deposit, the Government will guarantee your loan to avoid you paying LMI.|
|Family Home Guarantee: for single parents, you can use a 2% deposit & have the Government guarantee the rest of the loan.|
Need more information?
We can assist you in confirming your eligibility & explaining all current Government schemes to assist you in buying your first home. We can also help you complete & submit your FHOG application to an Approved Agent. To learn more about us and our home loan process, check out our Mortgage Broker Brisbane page.
FAQ for the First Home Owners' Grant QLD:
Can you use the FHOG as part of your deposit?
Yes - but you'll generally still need a 5% deposit saved.
When is the FHOG paid?
When applying through an Approved Agent, the FHOG is paid on the day of settlement for purchases or when the slab is down for builds.
When does the FHOG finish?
There's currently no end date.
DISCLAIMER: You must not rely on the information in the report as an alternative to financial advice from an appropriately qualified professional. If you have any specific questions about any financial matter you should consult an appropriately qualified professional. We do not represent, warrant, undertake or guarantee that the use of guidance in the report will lead to any particular outcome or result. The content, calculations and opinions contained in this article are of the writer only, and are not necessarily those of Blue Fox Finance.