What is the First Home Owners Grant?
Have you been living at home and recently decided it is time to purchase your own home? Maybe you and your partner have been renting and now it is time to buy your first home as you prepare to start a family. If you are looking to buy your first home, finance is probably one of your most significant concerns.
Fortunately, the South Australian state government can help you build or buy your first home with a grant called the First Home Owners Grant (FHOG).
This government initiative was introduced to offset the impact of GST and to provide the assistance that first home buyers need. The FHOG is a national scheme, funded by the states and territories and managed under their own legislation.
The First Home Owners Grant is a One-Off Payment
This grant, which is a one-off payment, is available to eligible South Australians looking to acquire their first home. To be eligible, you need to an Australian citizen or at least have permanent residency. You can check your eligibility for this grant by completing the Eligibility Checklist on the Revenue SA website.
In South Australia, the grant is currently $15,000 and it applies to the construction or purchase of new residential property which includes a house, townhouse, unit, flat or apartment.
The FHOG is a sizeable sum of money which you can use to pay your deposit and lenders will often consider it as part of your savings.
This grant is available on new fixed dwellings only up to the value of $575,000. This means that if you’re looking to buy an existing home, you are not eligible for the FHOG.
FHOG is also not available for renovations or purchase of vacant land.
The new purchase or construction of your first home must also meet the local planning standards anywhere in South Australia.
You can take your time and apply for the FHOG after the foundation is laid. But you must apply within 12 months of the property being ready for you to live in. Applications for the FHOG can be made with an appropriate application form which you can lodge with Revenue SA or an approved agent.
Many financial institutions are authorised to process FHOG applications and you can check out the complete list here. This works out well if you are also obtaining finance from one of these institutions as you can make all your applications at the same time.
In this case, the grant may be available to you at the time when the foundation is laid or at the settlement of property.
However, if you make an application with Revenue SA for a new property, then the payment of the grant will be made at settlement only after proof of the documents is registered with the Lands Titles Office.
You must also live in your new residential property for at least 6 months in the first year of owning your new home, to be eligible for the grant.
The FHOG is a fantastic incentive and opportunity for new homeowners looking to acquire their first home. For all information on this grant, check out the Revenue SA website.