Expat First Home Owners Grant in Australia | FHOG
The First Home Owner’s Grant (FHOG) is a government initiative that provides financial assistance to first-time homebuyers purchasing or building a new home.
As an expat, you may also be eligible for this scheme if you meet the eligibility requirements. However, there is a crucial factor that expats must consider before applying for FHOG – their plans to return to Australia in the near future. Without returning to Australia, you cannot qualify for the FHOG.
This article will provide a comprehensive guide to the First Home Owner’s Grant, including its eligibility criteria, the amount of the grant offered in different states, and how to apply for it as an expat.
What is the First Home Owner Grant?
The First Home Owner Grant is a government fund to encourage first-time home buyers looking to purchase their first residential property. The FHOG is a one-time payment. Factors such as income, age, residency status, and the value of the purchased property may be considered to qualify.
The amount of the grant and the criteria for eligibility differ state-wise. For example, the FHOG can provide a grant of up to $10,000 or more in some cases to eligible first-time buyers who are purchasing or building a new home.
The main goal of the FHOG is to make it easier and more affordable for first-time buyers to become homeowners, especially if they would otherwise have difficulty saving for a deposit or meeting other costs related to buying a property.
It was introduced in Australia in 2000.
Get a free Australian mortgage assessment today.
How much is the First Home Owner’s Grant?
The First Home Owner Grant (FHOG) amount varies depending on the state or territory where the property is located. The maximum amount of the grant is $10,000 in most states and territories, except for Victoria and the Australian Capital Territory, where the grant amount is $20,000 for properties in regional areas. Additionally, some states or territories may offer additional incentives or bonuses, such as stamp duty concessions or grants for new homes.
Here’s a breakdown of the varying FHOG amount based on state/territory, property value and criteria:
FHOG NSW:
- FHOG Amount: $10,000
- Property Value:
- To be eligible for the First Home Owner Grant NSW, when purchasing a newly built property such as a house, townhouse, apartment, or unit, the purchase price must not exceed $600,000.
- When purchasing vacant land and signing a building contract with a builder, the total combined cost of the vacant land, comprehensive home building contract, and any building variations must not exceed $750,000.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG VIC
- FHOG Amount: $10,000 ($20,000 for new homes built in regional Victoria, for contracts signed from 1 July 2017 to 30 June 2021.)
- Property Value: To be eligible for the First Home Owner Grant VIC, when purchasing a newly built property such as a house, townhouse, apartment, or unit, the purchase price must not exceed $750,000.
- Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG WA
- FHOG Amount: $10,000
- Property Value: To be eligible for the First Home Owner Grant WA, when purchasing a newly built property such as a house, townhouse, apartment, or unit, the purchase price varies:
- South of the 26th parallel (south latitude): $750,000.
- North of the 26th parallel: $1 million.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG QLD
- FHOG Amount: $15,000
- Property Value: To be eligible for the First Home Owner Grant QLD, when purchasing a newly built property such as a house, townhouse, apartment, or unit, the purchase price must not exceed $750,000.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG SA
- FHOG Amount: $15,000
- Property Value: To be eligible for the First Home Owner Grant SA, when purchasing a newly built property such as a house, townhouse, apartment, or unit, the purchase price must not exceed $575,000.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG TAS
- FHOG Amount: $30,000
- Property Value: There is no limit to the purchase price when purchasing a newly built property such as a house, townhouse, apartment, or unit to be eligible for the First Home Owner Grant TAS.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes. Off-the-plan is also accepted.
FHOG NT
- FHOG Amount: $10,000
- Property Value: There is no limit to the purchase price when purchasing a newly built property such as a house, townhouse, apartment, or unit to be eligible for the First Home Owner Grant NT.
Criteria: The home must be newly constructed or substantially renovated and shouldn’t be established homes.
FHOG ACT
- The new Home Buyer Concession Scheme has replaced the FHOG ACT.
Check with the relevant government authority or seek advice from a financial professional to confirm the FHOG amount and any additional incentives available in your location.
First home owners grant eligibility
Am I eligible for the First Home Owner Grant?
The eligibility criteria for the FHOG varies depending on the state or territory where the property you’re looking to purchase is located. However, there are some general criteria that you must meet to be eligible for the grant in most locations:
- You must be 18 years or older.
- You must either be an Australian citizen or a permanent resident.
- The property must be a new or substantially renovated home or the land must be intended for constructing a new home.
- If you’re buying a home, you must reside in it as your primary residence for at least six months continuously within a year of settlement. If you’re building a home, the exact condition applies from the completion date.
- You must be a first-time home buyer, meaning you have never owned or co-owned a property in Australia or another country.
- You must not have previously received an FHOG in the past.
- You must be an individual person and not a company or trust.
Can Australian expats get FHOG?
Yes, expats can apply for the FHOG if they meet all eligibility requirements. However, it’s important to note that one crucial factor to consider is their intention to return to Australia. The main eligibility criteria include residing in the home continuously for at least six months within a year of settlement.
Therefore, expats would only be able to qualify for the FHOG if intending to return to Australia.
Get a free Australian mortgage assessment today.
How to apply for the first home owners grant
There are two ways to submit your FHOG application. The first and easiest method is through your lender when you apply for your home loan, and our Odin Mortgage broker can guide you through the process.
Alternatively, you can apply directly to the state government department that manages your area’s First Home Owner Grant, typically the Revenue Office.
Apply for First Home Owner Grant as expat: A guide to return to Oz
Assuming you are considering returning to Australia and meeting your state’s FHOG eligibility criteria, it takes a lot of work to resettle. As an expat, you may encounter various challenges related to taxation, assets, and currency exchange that could impact your decision to return.
Fortunately, Odin Mortgage can guide you to simpler financial resettlement in Australia. Our team of experienced mortgage brokers can help you apply for the first home owner grant and help you find the best loan options that suit your needs. Contact us today to learn more.
Frequently asked questions
Yes., the FHOG can be used as a deposit to assist with the costs of owning a home, but it may not cover the entire deposit.
The processing time for the grant application can take up to 1-2 weeks, and the payment timing depends on whether you’re buying or building. The payment is made at settlement for an already-built home, and for a new home, it’s usually paid at the first loan drawdown when the slab is laid.
See What You Qualify For
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