First Home Owners Grant

As at 1st July 2000 the first home owners grant has been available. The grant allows a total maximum payment of $7,000 to be paid to eligible applicants who are buying or building their first home.

Eligibility

"To apply through the scheme, you need to be either an Australian citizen or a permanent resident who is buying or building their first home in Australia. In the case of joint applicants, all applicants must be eligible but only one needs to qualify as an Australian citizen or permanent resident. An applicant or applicant’s spouse (or de facto) must not have received an earlier grant or have previously owned a home." *
* John Nolan - Your mortgage magazine 2000

Remember that the first home owners grant is intended for applicants who are buying or building their first home and who are using the home as their place of residence. The home must be occupied by at least one of the applicants within 12 months after completion of the eligible transaction.

Payment

Each state or territory has applied the scheme differently and therefore the payment can be made in a variety of ways, see the website details below for details on your state/territory.

Key point

The $7,000 government grant is not deemed as savings. Most lenders require a minimum save of 5% of the deposit as 'genuine savings'. Genuine savings are funds grown over time in a regular manner. Therefore mortgage insurers for the purpose of a genuine savings test will not include the grant.

For more detail on the first home owners grant visit:

Reproduced with the kind permission of Australian Loan Company Limited