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Frequently Asked Questions

First Home Owner Grant Application Process FAQs:


How much is the First Home Owner Grant worth?
The standard First Home Owner is $7,000. However in October 2008 the federal government announced an increase to the First Home Owners’ Grant for first home buyers as an interim measure. First home buyers purchasing an established property will now receive $14,000 for the purchase of established homes, and $21,000 for the purchase of newly-constructed homes. The increased Grants are available between 14 October 2008 and 30 June 2009.

I don’t have any savings. Can I use the First Home Owner Grant as my deposit?
With some lenders you can. For most though you can borrow up to 95%
1 of the purchase price (or valuation if lower) when buying for owner-occupation. You need to have a deposit, are able to afford the repayments and have funds to cover your transaction costs. And if you’re eligible for the First Home Owner Grant, you can use this money towards your transaction costs.


I have bought a residential block of land and intend to build my first home on it in a few years time. Can I apply for the First Home Owner Grant now?
You can only make your application for the Grant once you have finished building your home and you have an Occupation Certificate issued by Council confirming the home is ready for occupation.

 
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If I apply for the First Home Owner Grant do I have to live in my home straight away or can I rent it out?
You could rent out your property for an initial period and still be eligible for the Grant. Remember though, you must move in within 12 months of the settlement date and reside there for a continuous period of 6 months in order to meet the Grant criteria.

How is the term ‘newly constructed’ defined?
For the purposes of the Grant, a newly constructed property is one which is being sold for the first time and which has never previously been occupied as a place of residence by the builder, a tenant or other occupant.

Can I claim the First Home Owner Grant on a property I have inherited?
Unfortunately the criteria for the First Home Owner Grant requires you to purchase a 100% share in the property either, on your own or jointly, or build or purchase a newly constructed home.

Property received by way of gift or inheritance does not satisfy this criteria. Therefore you are not eligible to receive the Grant.

Can the First Home Owner Grant be used to buy a on-site home in a caravan park?
Providing the home is fixed (ie not moveable), then it would qualify for the Grant. (The Grant is not available on moveable homes such as caravans or unfixed mobile homes).

How do I apply for the First Home Owner Grant?
Your home loan lender will usually apply for the Grant on your behalf, as part of the home loan application process. However, if you prefer, you can apply directly to the Office of State Revenue in your State.

I am purchasing my home with friends as tenants in common. Can I apply for the First Home Owner Grant?
You can apply for the First Home Owner Grant when purchasing as tenants in common, providing that all parties with an interest in the property are eligible for the Grant.

Note, the Grant is payable per property purchase, not per individual, so if eligible, you will only receive the Grant once between you and the other proposed tenants in common.

Disclaimer: This information is provided for your information only and should not be construed as provision of advice. Whilst every effort has been made to ensure that the information contained is accurate, the information should not be relied upon or used as a substitute for independent professional advice.. We strongly recommend that you seek independent professional advice specific to your individual circumstances.

1
Funds to cover transaction costs and deposit required. Subject to loan serviceability. If for investment purposes, must hold 20% of the purchase price in equity in other residential real estate or income earning assets.