The step to buying your first home in Queensland just got a lot smaller, thanks to over $55,000 in government grants now up for grabs. Some are time-limited, so get all your ducks in a row now to make sure you qualify for the full amount.
First, let’s recap the grants you can nab as a first home buyer in Queensland.
First Home Buyers Grant: a $15,000 cash grant for new home buyers
First HomeBuilders Grant: a $25,000 cash grant for new home builds
First Home Loan Deposit Scheme: a government guarantee for 15% of your 20% deposit, so you don’t have to pay Lenders Mortgage Insurance (saving you between $10K – $16K)
Stamp Duty Concession: Pay $0 stamp duty transfer fees for a home under $550,000 (saving up to $8,750)
Fortunately for you, if you’re a first home buyer, building your first home in Queensland, then you already tick one of the most important qualifying boxes!
Making sure you qualify to unlock maximum benefits
The money is there on the table, so let’s break down how you can access it all as a first home buyer. The rules are different across states and territories, so we’ll focus on what’s on offer for first home buyers in Queensland.
- First, check the eligibility criteria for each grant. Some have time-sensitive deadlines and limited numbers. Here’s some quick examples of criteria for each:
The First Home Buyers grant:
- At least one applicant must be at least 18 years of age
- Must be a first property for all applicants
- You are an Australian citizen or permanent resident
- The home must be your principal place of residence for at least 12 months after building
The First HomeBuilders Grant:
- Must be a new build
- The value of the land and home can’t exceed $750,000
- Your income must be less than $125,000 for a single person, or $200,000 for a couple
- You must enter into the contract before December 31, 2020, and start construction within three months
First Home Loan Deposit Scheme:
- You’ll need to be able to successfully apply through a lender and qualify for a loan deposit that suits the schemes 5% minimum deposit amount, and verify you can service the loan.
Once you know you qualify and have successfully applied, grant funds are paid out during the construction process as needed. We guide our clients through the whole process so nothing is missed.
- Next, start tidying up your finances.
Consolidate or pay down debt, and set up a savings budget for a deposit if you haven’t already. Make sure your tax is up to date so you can verify your income to lenders and satisfy grant application criteria.
Also, make sure you’re accessing all the tax benefits you could be, and have a plan in place for how much deposit you’re willing to lay down.
Looking good to lenders is worth its weight in gold, and the best time to start getting in shape is today!
- Work with a financial planner to see what you can afford as a deposit, and weekly mortgage repayments. This will determine whether you qualify for the First Home Loan Deposit Scheme, which isn’t technically income-tested, but is based on what lenders are willing to loan to you.
The First Home Loan Deposit Scheme is only granted to limited numbers each year, and only to first home buyers, so it’s worth working with a professional team like ours to make sure you tick all the boxes during the application process and increase your chances of being chosen.
Getting it right now means a better future
Ultimately, you want to be able to love the home you buy, not sweat out the mortgage. That’s more possible than ever now with the government grant money on offer, making it a truly outstanding time to get into your own property.
The grants favour first home buyers building new homes, and Queensland offers some of the highest grant opportunities in Australia. If you’re wondering if you would qualify for these grants, our Insignia Homes team can help.
