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Did you know that 10,061 first home buyers took out a mortgage in October this year? This is 37.8 percent more than the first home buyer loans issued last year, in October 2016.

 
First home owner grant south australia
 

But, come December, and you expect the property market to turn sluggish, thanks to the holiday season. However, this year could be a little different, as, for many lenders, it would be business as usual during the period. A few have also offered introductory rates and deals for first home buyers who plan to buy a home during the holiday season (Contact a broker to know more)


Helping first home buyers into the property market

Making your way up the property ladder is exciting as well as stressful. However, with many Australians struggling to save a deposit, the Federal Government stepped in, earlier this year, with a slew of measures to ease the entry of first home buyers into the property market. Various states in Australia took it upon themselves to help first home buyers in their territory by introducing first home owner grants, which were plumped up for limited periods in July this year.

For example, you can get a grant of $20,000 in Queensland as well as Regional Victoria. Even the Berejiklian government has rolled out some great schemes under the housing affordability package introduced earlier this year.


First Home Owner Grant in South Australia

In October 2017, 13 percent of total home loans in South Australia were taken out by first home buyers.

To help the first home buyers in the State, the Government in SA offers a $15,000 First Home Owner Grant on the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment meeting local planning standards, anywhere in South Australia.

In addition, the SA Government offers partial stamp duty concession on the transfer of new or substantially refurbished apartments, anywhere in South Australia, if the transaction is dated between 1 July 2014 and 30 June 2018. (Use this Stamp Duty Calculator to know how much duty is applicable on your transaction.)
Foreign purchasers who enter a contract on or after 22 June 2017 are not eligible for the concession. Learn more here.
Did you know that you might also be eligible for an additional $10,000 grant if you entered an eligible off-the-plan apartment contract between 22 June 2017 and 30 September 2017 in South Australia?


Who can apply for FHOG in SA?

If you are:

  • At least 18 years old
  • An Australian citizen or permanent resident (In the case you are applying with a partner, at least one of the applicants must be an Australian citizen or permanent resident to qualify)
  • Buying a new property that has never been occupied before

You might be eligible for the $15,000 grant in SA if you fulfil the following additional criteria:

  • Neither of the applicants must have owned a property before
  • You must not have received the first home owner grant in any other State
  • All applicants must move into the house within one year of the purchase and reside there for a continuous period of at least six months, failing which, a penalty may be levied.

Read more about the provisions here.


What kind of property can you buy?

To be eligible for FHOG in SA, you must purchase or enter a contract to build a new home whose market value does not exceed $575,000. A new home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home. The grant is not applicable on the purchase of established homes.


How to apply for FHOG

To apply for the first home owner grant, you may lodge your application through your mortgage broker or financial institution, if it is an approved agent, or download the application form and lodge it yourself after the sale process is complete. Apart from the application, you would also be required to submit other paperwork, including the proof of your identity and the contract of sale.

We advise that you are completely honest while applying for the first home owner grant. The applications are heavily scrutinised, and incorrect information could lead to rejection of your application as well as additional penalties and fines.

Remember that the FHOG approval process is stringent and time-bound, and one must not lose the benefit simply out of confusion or shying away from taking professional help. Mortgage brokers at HashChing have helped many first home buyers like you purchase their first property with significant savings on their home loans. Read Susan’s story to know more.


When is the grant payment made?

The grant payment is made at different times, depending on how you apply for it and the type of property you are buying. When you apply through a bank or a lending institution, you can expect the grant on the settlement date in case you are buying a new home. In the case of a construction loan, the grant will be received on the first drawdown of funds, which is usually when the slab for your home is placed.

You can use FHOG as a part of the deposit when applying for a home loan, which is a big boost for first home buyers who have been struggling to save for a deposit. You can also contact a broker to learn more about family guarantee loans if your parents decide to guarantee your mortgage.


Planning ahead

Everyone is aware of the increasing competition in the mortgage market that has encouraged the banks to offer lucrative deals to home buyers. However, despite all the discounts and first home buyer schemes on offer, we suggest that you analyse your finances minutely before deciding to buy a house.

If you intend to purchase a home soon, start by creating a good household budget to see how much money you can apply towards your mortgage repayments each month.

Remember, you can only avail the first home owner grant once. Thus, it is important to make an educated decision rather than rushing into a purchase you cannot afford to make. Speaking to a mortgage broker could help you understand your situation better.

At HashChing, we have helped hundreds of first home buyers purchase their dream home. Our mortgage brokers provide you most professional guidance, apart from competitive home loan deals from across Australia.

Once you get in touch, an expert will assess your eligibility for FHOG, lodging the application on your behalf, with all the supporting paperwork, promptly, which will save you time and hassle, ensuring you receive the funds in time.

You can learn more about FHOG in different States here.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.