What is the First Home Owners Grant (FHOG)?
The First Home Owners Grant (FHOG) was introduced by the Federal Government to assist people in buying their first property. The grant amount varies from state to state and can depend on the loan amount and value of the property.
Am I eligible for the First Home Owners Grant (FHOG)?
As a general rule you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia with the intention of occupying it as your principle place of residence within 12 months of settlement.
Can I use the First Home Owners Grant (FHOG) as part of my deposit?
There are no restrictions or guidelines on how you should spend the grant. If you would like to use the grant as your deposit, you should note that the grant is paid either at or after settlement. The FHOG can be used for construction draw downs if you are building a new home and your lender is an approved FHOG agent. In practice, the vendor of the property or your lender will usually require the deposit to be made up front or within 14 days of signing a contract. Some lenders now allow the FHOG to be used as a deposit.
How do I apply for the First Home Owners Grant (FHOG)?
Once you get formal approval of your loan, you have two options for applying for the FHOG:
- Apply directly - you are responsible for completing and submitting all documentation.
- Apply via a lender/approved agent - the approved agent will handle the application on your behalf.
How is the First Home Owners Grant (FHOG) paid to me?
The FHOG is paid into your nominated bank account via electronic funds transfer (EFT) usually within 10 working days once the application is received.