There are a number of grants and concession for home buyers, and the First Home Owners Grant is one that’s offered by selected state governments. It differs from state to state, but Queensland’s is one of the most generous in the country.
The $15,000 First Home Owners Grant (FHOG) can be combined with other grants, used as a deposit, and isn’t means tested. As long as you tick a few eligibility criteria, the FHOG can help you, just like it has thousands of other Queenslanders buying their first home.
Are you eligible for the First Home Owners Grant?
The most important thing to know is that Queensland’s FHOG only applies to first-time buyers who are purchasing a brand new house. If you meet those criteria, you’re halfway there.
Take a look at the following tables to test your own circumstances against the FHOG eligibility criteria.
|Your situation:||Eligible for FHOG:|
|Buying a new home||Yes|
|Having a new home built||Yes|
|Buying an existing but extensively renovated home||Yes (with many conditions)|
|Applicants are aged 18 years or older||Yes|
|Applicants are Australian citizens or permanent residents||Yes|
|Applicants are people, not a trust or company||Yes|
|Moving in within 12 months||Yes|
|Plan to live in the home for at least 6 continuous months||Yes|
|The value of the home is less than $750,000||Yes|
|Buying an existing home||No|
|Have accessed the First Home Owners Grant before||No|
|Have owned property in Australia previously||No|
|Buying as an investment property||No (unless you plan to live in the home for at least 6 months, and move in within 12 months of completion)|
|The market value of the home is more than $750,000||No|
How to apply for the First Home Owners Grant
It’s essential you see a mortgage broker to assess your borrowing capacity, find a lender, and confirm your eligibility to the FHOG as well. We have financial experts and brokers in our Insignia Homes team who can help.
You can apply for the FHOG through your mortgage broker, or directly through the Queensland Office of State Revenue by snail mail or email.
It’s easier to let a professional guide you through the process and help with the supporting documents you’ll need to provide. We take care of all the paperwork and the submission process for our eligible clients.
You’ll need to apply within certain timeframes depending on what type of home you buy.
- Buying a completed new home: you must apply within one year of taking possession of the property
- Contract to build a home OR owner-builder: you must apply within one year of the new home being completed (from final inspection)
Statutory declarations you may need to provide for a First Home Owners Grant
- Building or buying new through a family member. The Queensland Government will need to see evidence of the market value of the property.
- Getting financial help from friends and family. You’ll need to provide a complete description of money gifted or loaned, and include copies of any loan agreements with your application.
When is the First Home Owner Grant paid?
The timeframe for the grant payout is different depending on a number of factors, one of which is simply how busy the government department is.
Having the right documents together speeds up the process, so it’s helpful to go through a broker or property company who can help you get it right first time.
If you apply this way, your FHOG payout will generally be released:
- at settlement, if you’re buying a completed new home
- on the first drawdown of funds, if you’re building new
- after you submit the final inspection certificate, if you’re an owner-builder
If you apply through the Office of State Revenue, you’ll receive your grant funds when you have a title in your name, or you have the certificate for the final inspection.
Am I also exempt from stamp duty if I’m a first home buyer?
Stamp duty concession can be claimed for homes valued under $550,000, on a sliding scale.
For example, homes valued under $500,000 receive a full concession, with no stamp duty payable.
Homes valued between $500,001 and $550,000 get a huge fee reduction, which, for example, equates to $6,300 payable for a $530,000 home.
Homes valued over $550,000 can still be eligible, but receive only the home concession portion of the stamp duty rebate. For a $600,000 home, that would be $12,850 due in stamp duty.
Can you get first home owners on existing homes?
No, the grant applies only to new homes being built, or substantially renovated homes where there is an overhaul of structural and non-structural elements.
Can you combine the First Home Owners Grant with other grants?
The Federal Government announced another 10,000 places will be opened up for the First Home Loan Deposit Scheme (FHLDS) on July 1, 2021. The FHLDS guarantees 15% of your deposit, so you only need to pay 5% down without being penalised by an expensive loan fee called Lenders Mortgage Insurance.
Another side to the FHLDS is the new Family Home Guarantee, which gives single-parent families the opportunity to pay only 2% deposit for the purchase of a newly built home, with an 18% government guarantee for the remaining amount. There are 10,000 places available for the Family Home Guarantee.
The First HomeBuilder Grant expired in March 2021, but we’ve continued the offer with our own $15,000 Builders Contribution.
Insignia Homes Is Extending the Home Builders Grant, with $15,000 Builders Contribution.
How do you get started in buying your first home
To get started, make an obligation-free appointment with a property group who can show you what’s available in your locations. Book time with a mortgage broker to identify your best purchase price, and then follow the lead of your chosen property group. They’ll help you with fittings and furnishings, oversee the build, and take care of the paperwork, including grant submissions.