First Home Owners Grant is provides for purchase or construction of a new house. It is a grant that is one-off. There are varying amounts of grants available. It depends on the contract and time or when the construction commenced. Below is everything you need to know about First Home Owners Grants (FHOG).
FHOG is an initiative offered by government to buy or build their first home. There are some requirements that you should meet for you to be considered eligible. You need to be at least 18 years and above. However, there are cases when the commissioner may exempt an applicant if the requirement is appropriate. You should be a resident of the country you intend to make the application. The requirements are different from country to country. It is advisable you confirm from the commissioner the requirements to be sure that you quality.
It is essential you decide on what property to purchase. FHOG mostly applies to a duplex, single dwelling, flat or townhouse. It is not given when renovating existing buildings or purchasing a vacant land. Provided you are eligible, there are no set requirements regarding use of the money.
Applicants usually fill a FHOG application with an approved agent. It is best you apply within a year after completion of the transaction. Completion occurs when a home is ready to be occupied. Make sure you submit a copy of the existing home with your application. Also, you need to attach a building contract with the application.
The application form will have the information regarding the supporting documents that need to accompany the application. If you will be using an approved agent, they will inform you about the supporting documents they need for them to submit the application. Ensure you provide proof of identify.
FHOG is rigid when in use. It is normally used to make payment for outstanding loan. It is a challenge to use it as deposit. Grants are not paid to the buyers, instead they are transferred to lenders and taken off your mortgage. After you have started the construction process that is when grants are approved.
You need to know that grants are not given twice. Grants are one-off payments. It is not taxable. It is advisable you use a FHBG calculator to determine the grant depending on your property and location. Grants are nor repaid. It does not incur debt or interest. Your income and financial needs are checked to know the grant you will get.
There are certain states that offer additional grants for individuals who buy or build homes in prime areas. Consider booking an appointment with a lending specialist to gather more details on grants. You will know in advance what is required of you.