Guide 1. Understanding the First Home Owner Grant

Home Loans

Buying a home for the first time can be quite overwhelming, especially if you haven't been able to save up a substantial amount of money for your down payment. Fortunately, there is a program that can help you in exactly that situation. This program, called the First Home Owner's Grant, allows first-time homebuyers to purchase a home with little to no money out of pocket.

The First Home Owner's Grant is a one-time grant of $7,000 given to eligible home buyers to be used towards the purchase of a home. In order to be eligible for the grant, applicants must be Australian citizens or permanent residents and can not have owned a home prior to the application of the grant. Because the eligibility criteria for the grant can be confusing, it is important to work with an experienced mortgage broker who is familiar with the First Home Owner's Grant program. Your mortgage broker will also be able to help you determine how much home you can afford with the funds from the grant added into consideration.

If constructing a new home or purchasing a home that has never been occupied, a home buyer may be eligible for additional funds (up to an additional $7,000). Your mortgage broker can help you determine whether or not you are eligible for the additional funds during the application process.

To be eligible for the First Home Owner's grant, you must plan on making the property you are purchasing or building your principal property. This means that the grant cannot be used to purchase a second home or an investment property. You must also plan on occupying the home within one year of the purchase or construction.

Application for the grant will not be accepted unless the homebuyer has already entered into a contract to purchase a home or has entered into a contract to construct a home. While the application process for the First Home Owner's Grant can be confusing, the help of an experienced mortgage broker can streamline the process – saving you time and preventing unnecessary headaches. Further details about the First Home Owner's Grant can be found at http://www.firsthome.gov.au/.

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