Know everything about First Home Owner Grant (FHOG) in VIC Melbourne

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Hey there!

 

Are you looking for a home to buy for the first time? Doing some research to know what government subsidies and incentives are available, as well as how much you can save!

 

Then you are at the right place. 

 

First time home buyers who meet certain criteria may be eligible for government assistance in purchasing their first house. It is known as the First Home Owner Grant (FHOG). And it works differently in each state or territory. Let’s look at how it works and who qualifies for it.

 

What is the First Home Owner Grant (FHOG)?


The First Home Owner Grant (FHOG) Victoria is a one-time cash reward for first-time homebuyers who qualify. It is a one-time grant designed by the government to assist first-time home-buyers in purchasing their own home.


Because it is a national programme, funded and operated by the states and territories, each has its own set of rules. Like, the FHOG is only available in Victoria if you purchase or construct a new house, and it is worth $10,000 in Victoria.


Because loan rates are at an all-time low, it’s the best time to take advantage of the First Home Owner (Buyer) Grant in Victoria. 


If you are looking to buy your first home, you can read this guide and apply for the grant.


But but but… Before applying to FHOG, you just need to know whether you are eligible for it or not? How much is it gonna be and how to apply for it?


Are you eligible for First Home Owner Grant VIC?


Well buying a home isn’t an easy task at all for someone like you, going to buy your very own first home. For starters, FHOG is only available if you’re purchasing your FIRST HOME. In most cases, this means you and anyone else you’re buying with have never owned a home before.


Well as I just said it isn’t easy. Some conditions must be met to be eligible for the First Home Owner Grant in VIC Melbourne. Like:


  • By the time you settle or when the home is ready to be occupied, you must be at least 18 years old.

  • You or the person you’re buying with must be an Australian citizen or permanent resident.

  • It cannot be a vacation or investment property. Must be purchased for residential purposes.

  • You or the person you’re buying with must not have previously received the FHOG in Australia.

  • You must move into your house within 12 months of settling on the property or when the home is entirely built. And you must occupy the residence for at least 12 months.

  • You must not have owned a home or other residential property in Australia before July 1, 2000, whether jointly or separately. If you or your spouse/partner owned property on or after July 1, 2000, but did not live there as your primary residence, you may still be eligible for the FHOG in Victoria.


Still, depending on the state or area you want to buy your home in, requirements may change and differ. Before you apply, make sure you know if you qualify for the FHOG. Also if you qualify for First Time Home Buyer Stamp Duty Exemptions.


Is your property eligible for FHOG VIC?

 

There are some conditions applied to when you are thinking of buying a property in Victoria. The FHOG VIC only applies to a home that you intend to reside in. It does not apply to investment or vacation properties.

 

Your first property can be a house, townhouse, apartment, or unit that is valued at $750,000 or less and is less than five years old.

You can only acquire the FHOG if you’re buying a new house or one that’s been substantially remodelled in specific states or territories. This could involve purchasing an 

 

  • Off-the-plan property.

  • Building a home on the unoccupied or vacant ground. 

  • Purchasing an existing home in a society wherein, most homes have been renovated, fixed, or replaced.

 

The property’s worth is usually limited as well, however, the exact restriction varies depending on the locality. For example, as of November 2020, the New South Wales Government has set a purchase price cap of $600,000 for newly constructed dwellings. Or a combined value of less than $750,000 for the site and residence you intend to construct on that land for qualified first home buyers. The cap may be lower or greater in different parts of Australia.

 

How much is the First Home Owner Grant VIC?


Till now you have known whether you are eligible for FHOG VIC Melbourne or not? And what type of property you can buy to be eligible for it. 


The FHOG Victoria is only accessible if you purchase a freshly constructed home or want to build one from the scratch. If you develop or buy a house in Victoria, the FHOG is worth $10,000. If you acquire a vacation house or an investment property, the FHOG Victoria is not available.


You must be buying a house for up to $750,000 that has never been lived in or building a house worth up to $750,000 to be eligible for the $10,000 First Home Owner Grant.


The First Home Owner Grant is increased to $20,000 if you are building or buying a new home in a regional location in Victoria.


When is the FHOG Melbourne get paid?

 

The FHOG payment is usually made at the time of settlement. This implies it won’t be available when you need to pay a deposit to the seller. When you sign a contract of sale, which is normally months before settlement, you must pay your deposit.


If your FHOG application is denied by the Government Revenue Office, you may need to seek additional money for settlement.


How to apply for First Home Owner Grant VIC?

 

After knowing all this you must be craving to apply for FHOG in Victoria right now. 

 

Hold on for a moment. 

 

Before going to apply know all the necessities you need to have.

 

You can apply directly to your state or territory’s Government Revenue Office. Many consumers, on the other hand, prefer to submit their FHOG applications through their lender. We’ll walk you through the process and help you fill out the paperwork if you’re applying for a house loan with Scouty.

 

Depending on whatever state or territory you live in, the process will be slightly different, so double-check the application details. You’ll need to submit identification and eligibility documents, as well as a copy of the contract of sale (or contract to build if you’re building a new house).


A word of advice: on your application, just say the truth. If you don’t, you risk being prosecuted. And if convicted, you’ll face severe fines. It’s just not worth it.


The First Home Owner Grant is simple to apply for, and your mortgage broker Scouty may assist you with the paperwork. Simply complete the form below, and a local expert will contact you as soon as possible.


Is First Home Owner (Buyer) are exempted from stamp duty in Melbourne Victoria?


Even after knowing what are the eligibility criteria, a common human nature wants concession on every penny they spend. So as you also wondering what if you could also save some money? 


Let us know how you can save. 


A stamp duty concession is exactly what it sounds like: a reduction in the amount of stamp duty that you must pay. When you get a stamp duty exemption, you don’t have to pay any stamp duty at all. This is true throughout Melbourne and Victoria.


If the home you’re buying is worth less than $600,000, you won’t have to pay any stamp duty. 


Yes, you heard it right. That’s around $31,000 in savings! 


If you pay between $600,000 and $750,000 for your first property, you may still be eligible for stamp duty discounts. Use our helpful calculator to figure out how much you’d have to spend for a home in this price range.


The good news is that these stamp duty discounts are available to first-time house buyers in Victoria regardless of whether they purchase an existing home or a newly constructed home.


So, go ahead and check out how much you are going to save!


Various Schemes for First Home Owner in Victoria


Not only Stamp Duty Exemption and Concession are provided by the government. But there are other schemes available which you can take advantage of.


Pilot Shared Equity Scheme


To purchase a home under the conditions of the new Pilot Shared Equity Scheme, qualifying first-time buyers will only require a 5% deposit. The Victorian State Government owns a proportional interest in the property of up to 25%.


Due to their 5% deposit and the government’s 25% ownership of the property, first-time buyers will be able to obtain a loan for 70% of the home’s value.


The first home buyer will only have to return the Government’s proportional interest if the property is sold.


Singles must have an annual income of $75,000 or less, and couples must have a combined family income of $95,000 or less to be eligible for government assistance.


$20,000 FHOG for Regional Victoria


The Victorian Government will pay a $20,000 incentive to first home buyers acquiring or building new properties in Regional Victoria up to the value of $750,000 for contracts entered into between July 1, 2017, and June 30, 2021.


It’s vital to remember that the date you sign the contract to buy or build your new home is the critical date for the $20,000 grant. The date of settlement is unimportant.


You may still be eligible for the $10,000 FHOG if you sign a contract to buy or build a new house in Regional Victoria after June 30, 2021.


Off the plan purchases


If you are a first-time homebuyer, you may be eligible for a discount on an off-the-plan property. Off-plan property is a property or development that is still in the planning or building stages and has not yet been completed.


First-time house purchasers will pay duty on the value of the property and construction at the time of the contract date, according to the provisions of the concession. In most cases, when a contract for an off-the-plan property is signed where construction hasn’t begun first-time house buyers will save money on duty.


Unfortunately, only first-time buyers who intend to live in the property as their primary residence will be eligible for the discount.


First Home Loan Deposit Scheme


The First Home Loan Deposit Scheme is a Federal Government Programme that assists eligible first-time homebuyers across the country, including in Victoria and Melbourne. 


Normally, a 20% deposit is required to purchase a home. However, if you are eligible for the plan, the NHFIC will guarantee 15% of your deposit. The property value is capped, and the scheme is limited to 10,000 borrowers per financial year.


First Home Super Saver Scheme


Because of the concessional tax treatment within your super fund, the First Home Super Saver Scheme allows you to save money in your superannuation faster than outside super.


You can make extra contributions to your super fund either before (concessional) or after (non-concessional) tax. And you can withdraw up to $15,000 in any one year and $30,000 across all years. This is an individual limit, so couples can save a total of $60,000.


Before you decide to participate in the First Home Super Saver Scheme, we strongly advise you to consult with an accountant. It’s a difficult sector to navigate, and there are several rules and regulations to follow.


If you’d want to speak with an accountant, get in touch. We have some genuine accountants in our Scouty who can help you understand what you can and can’t do with the FHSSS.


One last thing

 

FHOG, like other government-sponsored programmes, is subject to change. If you’re considering applying, double-check the details.

 

Learn more about the rules in your state or territory by visiting the below links:

 

 

To sum up 


The FHOG is a one-time incentive meant to assist first-time homebuyers. The FHOG requires varying qualifications depending on the criteria of each state or territory. Make sure you have the most up-to-date information on the prerequisites before applying. You can apply to the government directly or through your mortgage lender.


Between the above incentives, there are a lot of savings for first-time homebuyers to take advantage of — who knows, you might be eligible for all of them!


Contact the Scouty team at info@scouty.com.au or +03 7065 2282 to learn more about getting into your FIRST HOME.


How do you Buy Your First Home?


There are numerous options available to you when it comes to purchasing your first house. The easiest option is to contact a Mortgage Broker, who can show you the State Grants you qualify for and assist you with your home loan application. For additional information on how to buy your first house, see our service category Home Loan.


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