Peninsula Finance Group - Buying your first home with First Home Owners Grant

Getting on the property ladder.

The feeling of picking up the keys to your very first home is something you will always remember and a huge excitement! Before you go packing moving boxes however, there are some formalities to take care of first.

Knowing how much you can borrow and what deposit is needed are the keystones of your first property purchase. In addition, you’ll need to get your paperwork straight and ensure you start living as though you have a mortgage to ensure you are financially prepared for the commitment.

At Peninsula Finance Group, our goal is simple – have you prepped, ready and equipped with your ideal finance. We are also able to help first home buyers borrow up to 99.9% of a property value including lenders mortgage insurance (LMI).

This is ideal for those who have limited funds available for the deposit and costs associated with buying a property such as stamp duty and legal fees.

If you would like more information on home loans for first home buyers, continue scrolling…

Understanding your financials before searching for a home

We encourage First Home Buyers to develop positive saving habits before looking to purchase a home. As a homeowner, you will be responsible for the mortgage, rates and any repairs on the property and will need to be comfortable with that.

Getting a firm grip on your finances is important to ensure that you’re ready for such a major financial reprioritisation.

Before you start attending ‘Open Houses’, it’s also important to understand what your price limit is and how much you can afford by analysing your budget and deposit.

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You might be able to apply for the First Home Owner Grant, which helps Australians to get the funds they need to buy or build their first home.

For more information about the First Home Owner Grant, from what it is, to the eligibility criteria, what the differences are in each state, how much you could receive, and when the grant gets paid, we have included helpful links below.

The First Home Owners’ Grant is a state by state government initiative to help first home owners to get their new first home sooner.

If your contract is dated 1 July 2018 or later, you can get $15,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). The grant is paid per new home; not to each of the applicants for the same home.

For more information on the First Home Owners Grant, contact us today.

If you meet the First Home Owners Grant criteria, you might be eligible for a first home owner grant. We have listed some of the key points of the criteria below.

Unless you are an owner builder, you must have a signed contract to buy or build your first home before applying.

Age

You (and any co-applicants for the grant) are natural persons aged 18 years or older.

New home

The home you are buying, or building must be new and valued less than $750,000 (including land).

A new home is a brand-new dwelling (e.g. house, unit, duplex, townhouse, granny flat built on a relative’s land) that has not been previously occupied as a place of residence or sold as a place of residence.

The grant may also be available for:

established homes that have undergone substantial renovations before you bought the house
homes that have been moved from one site to another, as long as the home has not been occupied since being fixed to the new site (including kit homes, manufactured homes).

Citizenship

You must be an Australian citizen or permanent resident (or applying with someone who is).

If you are applying for the grant as a joint applicant—for example, you are not a permanent resident, but your spouse is an Australian citizen—you may be eligible for the grant if you meet the other eligibility requirements.

A permanent resident holds a permanent visa or is a New Zealand citizen with a special category visa, as defined by the Migration Act 1958 (Cwlth).

A New Zealand citizen with a special category visa must have a current New Zealand passport to be a permanent resident.

You can check if your visa is permanent or temporary by clicking on its subclass in the visa list.

For more information on the First Home Owners Grant, contact us today.

Anyone who will own any part of your new home must be included on the original application for a First Home Owners Grant. You only need one application for your new home, regardless of the number of applicants, because one grant is payable per new home.

If you have a spouse, they must be included on the application—either as an applicant or non-applicant spouse.

You must submit the original application and it must be:

signed by all applicants
witnessed
completed in full
accompanied by supporting documentation (e.g. proof of identity, contract, final inspection certificate)

The application form has a checklist of what you need to supply. For more information on the First Home Owners Grant, contact us today.

Recently renovated homes

Your home is also considered new if it has been substantially renovated before you buy it. You might be eligible for the grant if:

most or all of the house was removed or replaced
this is the first time the home has been sold after those renovations
it hasn’t been lived in since being renovated, including by the builder or a tenant.

Peninsula Finance Group is here to help

Peninsula Finance Group are here to help you find and secure a competitive home loan. Contact our team for more information or to schedule an appointment.

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