Planning on buying your first home in Queensland this year? Make sure you know about the First Home Owners Grant (FHOG QLD) – and how to make the most of it.
Here’s a quick guide to everything you need to know about the QLD FHOG in 2023. Happy house hunting!
What is the First Home Owners Grant (FHOG)?
The QLD gov is keen on helping first home buyers get their foot up the property ladder sooner. They have a range of first home buyer grants intended for this objective, and First Home Owners Grant QLD is one of them.
How much is FHOG in QLD?
The FHOG in QLD is a $15,000 one-off payment paid to first home buyers upon their purchase of a new property or when they build a new house.
“How much do I need for a house deposit?”
Good question – you normally need 20% of the property value for a home loan deposit to avoid paying the Lenders Mortgage Insurance premium. This may seem like too big of a deposit for most borrowers, especially when your eyes are set on a property that’s on the pricier side of the spectrum.
“Can I use the First Home Owners Grant as part of my home loan deposit?”
Good news: Yes, you can – and that’s $15,000 off your budget!
Another good news: You can use the QLD FHOG to pay for costs like stamp duty, legal fees, and title search.
Yet another good news: You can bundle the First Home Owners Grant QLD with other Queensland government grants and schemes!
Slightly bad news: There are guidelines for what property can qualify for the grant. The property must be:
- under $750,000
- a house, unit, duplex, or townhouse
- a granny flat built on a relatives property
- a home that has been moved from one place to another (e.g., modular or kit homes)
- a substantially renovated property
- bought as owner-builder / off-the-plan / with a building contract.
- not inhabited or sold as a place of residence at the time of completion.
When does the First Home Owners Grant get paid?
If purchasing a new property, the FHOG QLD is paid on the day of settlement. If building a property, the FHOG QLD is paid once the slab is down (i.e., first progress payment). If you’re the owner-builder, the FHOG QLD is paid upon completion of the property construction.
Who is eligible for First Home Owners Grant?
FHOG in QLD is available for individuals and couples (spouses can be signed up as a co-owner). Here is the FHOG eligibility QLD criteria:
- At least one applicant is at least 18 years of age
- Must not have owned a property previously in Australia unless it’s exclusively an investment purchased after 01/07/2000
- Australian citizen or permanent resident
- Home must be the principal residence for at least 12 months after building or purchase (moved in within 12 months, live continuously for 6 months)
- Not a recipient of FHOG anywhere in Australia
How to apply First Home Owners Grant
If you’re wondering how to get First Home Owners Grant, know that there two ways to go about it:
- FHOG application QLD through approved agents (e.g., bank or lending institution): this is faster since the agent will be the one to confirm your eligibility and manage your application
- FHOG application QLD to Queensland Revenue Office: the caveat to this is that the grant will not be paid until all supporting documents are provided by you. Time frame is within one year of buying your home or of the new home being completed (i.e., final inspection certificate is being issued).
When does the First Home Owners Grant end?
Currently there is no announced end date for the First Home Owners Grant. For more information, you can seek advice from mortgage brokers Sunshine Coast
Let a Sunshine Coast mortgage broker walk you through your FHOG QLD application
Before diving into your FHOG application, we recommend working with mortgage specialists to assess your eligibility and see what you can afford as a deposit and monthly mortgage repayments. And since there are limited places or slots available each financial year, a Sunshine Coast mortgage broker on your team will definitely help you stay on the loop.
Thanks for reading! As always, feel free to contact us when you are ready to get started.