GREAT AUSTRALIAN DREAM REIGNITED WITH THE FEDERAL GOVERNMENT GRANT
Earlier this month the Australian federal government announced a huge $688 million home builder package aimed at stimulating the construction and real estate sector. Whilst COVID-19 has resulted in a raft of social and economic issues for Australia, this package is set to benefit struggling first home buyers who are still looking to get their foot into the market. Below we take a look at some of the FAQ in relation to this scheme:
HOW MUCH IS THE GRANT?
Eligible first home buyers will be able to access a grant of $25,000.
HOW CAN I ACCESS THE GRANT?
The $25,000 payment is only applicable to first home buyers who choose to build their first home.
WHAT IS THE ELIGIBILITY CRITERIA?
- You must be an Australian citizen and an adult aged over 18.
- The property you build must be lived in when completed, it cannot be used for investment for the initial period of ownership.
- In your 2019 tax returns your income must not exceed $125,000 if you are a single applicant and $200,000 if you are buying as a couple.
- The building construction must be signed between 04 June 2020 and 31 Dec 2020.
- The value of the property (including land) must not exceed $750,000.
HOW DO YOU APPLY FOR THE GRANT?
All applicants will be handled by the state or territory you are building the property in. The process of applying is still to be determined however, the grant will be backdated so every buyer that meets the criteria will receive it. Some of the documents you will need to provide includes:
- copy of your building contract and related documents.
- copy of your 2019 tax returns.
- copy of your ID
CAN YOU USE THE GRANT AS A DEPOSIT?
Whilst most lenders won’t allow the Federal Government Grant to be used as a deposit, at FHBA mortgages we may have some options whereby you can use the grant towards your 20% deposit.
CAN I ALSO GET THE STATE GOVERNMENT GRANTS?
You will still be eligible for the grants offered by your state government in addition to the federal government grant at $25,000. Some states are offering up to $30,000 in additional grants making the total grants totalling $55,000. Speak to an FHBA coach to find out more https://fhba.com.au/contact/
HOW CAN I FIND OUT MORE OR APPLY?
At FHBA, we can help you apply for this grant in addition to your first home loan approval with rates from 2.19%. simply click here https://fhba.com.au/contact/ to learn more.
First Home Buyers