Saving for buying a dream house is a lengthy process, especially in Melbourne, where property prices may fluctuate. Thus, it is good to know you may be eligible for various government grants so you can get financial help from the government. The first home owners grant in Melbourne can help you get into your first home sooner. First home owner grants are provided by almost every territory and state government. These grants are available to first-home buyers who have never bought a home before. In today’s blog, we’ll discuss the first home buyer grant along with its eligibility criteria. Let’s get started:
What is First Home Buyers Grant in Melbourne?
Everyone knows buying property is not an easy task. And, financial support and assistance schemes offered by the governments are designed to help first-home buyers to buy their first home sooner. If you are a first home buyer in Melbourne, then you can apply for FHOG in Melbourne but terms and conditions may apply.
The grant amount may vary between different states and territories where the home is being purchased. The first home owner grant was introduced on 1 July 2000 to help first-home buyers to get home ownership easily. The first home buyer grant is a national scheme that offers financial support to eligible applicants purchasing their first home.
Eligibility Criteria for First Home Buyers Grant in Melbourne
The eligibility criteria for first-home buyers differ slightly between territories and states but generally, eligibility criteria for FHOG include:
- You need to be a first home buyer as an individual, not as a trust or company.
- At least one candidate must be an Australian citizen or a permanent resident.
- Each candidate must be 18 years old or above.
- You or your partner must not have previously bought land in Australia that had a residence on it prior to 1 July 2000.
- You or your partner can’t have lived in a residential property that you bought/owned from 1 July 2000.
- You or your partner must not have claimed the grant previously.
- You must occupy your first home within 12 months of the construction or purchase of your property and the minimum time of occupancy is 12 continuous months.
Conditions may differ from state to territory where you are going to buy your first home. Despite this, there are various government grants available for first home buyers in Melbourne.
Additional Government Grants for First Home Buyers
First-home buyers can combine other federal and state schemes with the FHOG and stamp duty concessions if they wish. The following are concessions and grants available for first-time home buyers:
- Stamp Duty Exemptions
Stamp duty is a tax that individual has to pay when they buy a high-value asset, such as property. Stamp duty exemption is also known as transfer duty or land transfer duty, and the total amount is generally payable after settlement. The payable amount varies based on your location and circumstances.
- Home Guarantee Scheme
The home guarantee scheme is a federal-level grant that has been introduced to provide financial help to Australians in need. These schemes guarantee a part of the property value so that Australians can buy their first home sooner and with low upfront costs. The following grants are available under the home guarantee scheme:
- First Home Guarantee
Recently, the first home guarantee has been introduced by the Australian Government to combine and replace two previous schemes: the New Home Guarantee (NHG) and the First Home Loan Deposit Scheme (FHLDS). Under the first home guarantee scheme, the legislative authority guarantees a part of your home loan, which means first home buyer home loan can buy their first home with only a 5% deposit while also avoiding LMI premiums.
- Family Home Guarantee (FHG)
Under the family home guarantee, the NHFIC guarantees a part of your home loan so you can buy your first home sooner with a minimum deposit. Under the FHG scheme, eligible single parents can buy a home with only a 2% deposit without paying LMI because this grant can insure up to 18% of the home loan.
- Regional Home Guarantee (RHG)
As part of the 2022-23 Budget, the regional home guarantee was announced to provide financial assistance for prospective homeowners looking to buy a home in the regional area. Anyone buying a home within eligible rural areas can be benefited from RHG to buy a home with only a 5% deposit.
If you want to be the first home owner in Melbourne and have a minimum deposit, then you can apply for government grants for which you are eligible. There might be some conditions that you need to meet to claim those government grants. You can reach Home Star Home loans in Australia to know what government grants you can claim to buy your first home.