Confirmed: QLD Government announces FHOG change from 01 July 2018
The Palaszczuk Labor Government’s fourth Budget has delivered some disappointing news for aspiring first buyers in the state of QLD. From 01 July 2018, the QLD Great Start Grant (FHOG) would drop from the current $20,000 to $15,000 till at least 30 June 2019. The Grant will continue to apply only for the purchase or construction of new dwellings valued at less than $750,000.
The $5,000 drop in the Grant may have a significant impact on whether first home buyers choose to buy in the coming year or not, as predicted by many Real Estate experts. This also marks the end of a two year period in which the grant was boosted from $15,000 to $20,000.
Did the $20,000 FHOG boost deliver intended results?
Since the grant was increased from $15,000 to $20,000 in July 2016, more than 14,000 applications worth almost $300 million have been approved – which is a significant increase prior to July 2016. Queensland first-home buyer loan approvals increased rapidly by almost 20% during the first 12 months of the grant. Therefore, the grant has delivered for both the government and aspiring first home buyers as it has resulted in a boost in construction activity and helped a significant number of first home buyers buy their slice of the Great Australian Dream.
Can you still take advantage of the $20,000 Grant?
Absolutely! The $20,000 FHOG boost ends on 30 June 2018. If you are looking to take advantage of this FHOG you don’t necessarily need to have moved into the property by 30 June. The key criteria is that you must have entered into a contract to build or to purchase a brand new home before 30 June.
Whilst you may lose $5,000 if you haven’t entered into a contract by 30 June 2018, our FHBA Coaches suggest you shouldn’t rush the decision to sign a contract before 30 June. Some builders/developers may inflate their prices in the weeks leading up to the end of the financial year, this may mean you pay even more than the $5,000 Grant that you will be eligible for.
Can I use the FHOG as my deposit?
Generally speaking YES you can use the FHOG as a deposit, either partially or in full. If you are looking to use the FHOG as the entire amount of your deposit, the following requirements need to be met:
- You need to be renting at the moment and you need to show a satisfactory rental payment history over the last 6 months, to show you can afford loan repayments once you get your first home
- The property you are purchasing must be a ‘brand new’ apartment/townhouse/house that has never been lived in (as the Grants only apply to new houses)
- Good credit history
- Sufficient income to support the home loan repayments (contact us below to find out!)
- The Grant must be equivalent to at least 5% of the total property purchase price
How can I take advantage of the current ($20,000) or new ($15,000) FHOG?
If you are interested in entering the Queensland property market we encourage you to get in touch with an FHBA Coach. Reasons why you should engage an FHBA Coach to assist you to include:
- We have access to hundreds of fantastic FHOG eligible properties in Queensland, ranging from new apartments to townhouses, terraces, duplexes and house & land packages
- Not only will your FHBA Coach assist you in obtaining the QLD $20,000 or $15,000 FHOG but they will also assist you in obtaining the FHBA 50 Rebate on your purchase. This could be thousands of extra dollars in your pockets for buying your first home through FHBA. Please note the FHBA 50 Rebate is only available through FHBA!
- Your FHBA Coach can also assist you in obtaining your first home loan
- FHBA’s new home & home loan services come at no charge to you
- An FHBA Coach will stay with you every step of the way
Want more information?
Simply complete an enquiry form for a free Discovery Session with an FHBA Coach who can assist you with things like your QLD FHOG eligibility; FHBA 50 Rebate eligibility and borrowing capacity – AT NO COST TO YOU!
First Home Buyers Australia