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Housing affordability has been a major concern for Australians hoping to break into the property market. To help first home buyers get a foothold in the real estate market, various States offer First Home Owner Grant and Stamp Duty Rebates to eligible buyers, meeting all the prescribed requirements.

queensland first home buyer grant

In Queensland, you may be eligible for the $20,000 First Home Owners’ Grant when building or buying a brand new home in QLD. In addition, the QLD government also offers first home buyers up to $8,750 as Stamp Duty Rebate, on purchase of an established home or a block of vacant land.


The QLD First Home Owner Grant

First home buyers in Queensland are eligible for a one off payment of $20,000 that is available until midnight on 31 December 2017. The grant is only available for contracts entered into between 1 July 2017 and 31 December 2017. From 1 January 2018, the grant will revert to the original amount of $15,000.

Note that the $20,000 grant is not available on the purchase of an established home. You can only avail the grant if purchasing newly constructed or substantially renovated homes, or building your own home.

In short, you are eligible for a grant of $20,000, if:

  • You are building your first home on vacant land (you are also eligible for Stamp Duty Rebate in this case)
  • Buying a new home or buying off-the-plan
  • Buying a substantially renovated home

The building contract or the purchase contract must be signed between 1 July and 31 December 2017


When is the grant payment made?

The grant is paid at different times, depending on how you apply for the grant and the type of property you are buying. When you apply through a bank or a lending institution, you can expect the funds 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. In general, FHOG is not sufficient for the full amount of your deposit. In most cases, you would need up to five to ten percent of the purchase price, along with FHOG, for a twenty percent deposit.

If you are struggling to save for a deposit, learn more about low deposit loans.


Check your eligibility for the $20,000 FHOG in Queensland

You can apply if you match the following criteria:

  • You are at least 18 years old
  • You are an Australian citizen or permanent resident
  • If you’re buying with a partner or spouse, at least one of the applicants is an Australian citizen or permanent resident to qualify


What kind of property can you buy?

Since the grant is available if you are buying or building a brand new first home, you must either:

  • Build your own home
  • Buy off the plan
  • Buy a new home that has never been lived in
  • Purchase a substantially renovated house (Note that if you buy a house and then renovate it, you will not be eligible for the grant)

The total value of the property must be under $750,000 in all cases. When you are building a home, this would include the cost of purchasing the land as well as the building cost.


Other conditions to be eligible for the grant

  • Neither of the applicants must have owned a property before
  • You must not have received the first home owner grant in any other State
  • You must move into the house within one year of the purchase and reside there for a continuous period of at least 6 months, failing which, you may be penalised

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.

Visit Queensland State website to know more.


How to apply for FHOG

To apply for the first home owners’ grant, you may lodge your application through your mortgage broker 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. Alternately, you could directly apply through your lender who is an ‘approved agent’ of the Qld Office of State Revenue. 

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.

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.

Get in touch by filling the form below, and an expert will contact you to assess your eligibility for FHOG, lodging the application on your behalf, with all the supporting paperwork, in a timely manner, 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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