The Queensland Government has advised that the first home owners grant has now increased to $30,000 for those looking to purchase their first property. This increase means that Queenslanders now have access to triple the grants available to Victoria and New South Whales. This decision was made based on the ongoing rise in the cost of living for citizens, that shows no sign of reprieve for coming years. With the Reserve Bank of Australia’s decision to increase the Cash Rate in November and expectations for ongoing cash rate rises, the Queensland Government has risen to match the economic shifts that people are experiencing.
To be eligible for the increased first home owners grant, there are a few factors that must be met in order to qualify. Most of the criteria remains the same from the initial $15,000 grant which was initially announced in 2012. Applicants must be over 18 years of age, and are required to be an Australian citizen or permanent resident (or applying with someone who is). They must not have previously received a first home owners grant, or previously owned residential property in Australia.
As this grant is strictly for first home first home buyers, investment properties do not fit within the guidelines to permiss the $30,000 cash offer. This also means that the applicant/s must move into the property within twelve months of the loan settlement, and must occupy said property continuously for six months thereafter. The property is to value at less than $750,000 including the land and any contract variations, and the home must not have been occupied or sold as a place of residence at the time of completion.
The dwelling can be anything between a:
The grant guidelines require the transaction to be either a new home, off-the-plan purchase, a substantial renovation (as mentioned above), a contract to build, or an owner builder. To qualify as an owner-builder, you must construct the home on a property of land that is owned by you, without entering into a home building contract. This requires you to complete the build from start to finish, taking on the responsibility of the entire project.
Apart from evidence that the property fits within the requirements above, standard documentation that is often required for all mortgage applications will be requested. This typically requires minimum of two points of identification, income verification documents (payslips or tax returns), proof of employment, and a summary of living expenses (often completed via secure online banking platforms) to ensure you have the ability to service your home loan.
Speaking with an experienced mortgage broker is one of the safest options to ensure your chances of securing the grant. Mortgage brokers are rehearsed in discussing options available to you when it comes to Government offers, and will also compare several different options to suit your individual circumstances. Having someone in your court is especially helpful for those who are looking to step into the property market for the first time. They can provide valuable insights on what to consider when buying your first home, and guide you on what to expect throughout the process.
If you’re contemplating purchasing a property for the first time, and would like to take advantage of the first home owners grant, speak to our friendly team today to learn more. Fox Home Loans offers a non-commital application process, and can discuss the options for your pre-approval without affecting your credit score upon initial consultation.