08/19/2016

First home grant: How much can I get and am I eligible?

First home grant: How much can I get and am I eligible?

Back in the days of black and white TV, speakeasy bars and top hats, your grandparents most likely bought their first home mortgage-free with their combined annual salary and a dozen eggs. Unless you win the lottery or have a chicken who lays golden eggs, this probably isn’t going to happen for you, thanks to house prices that have risen by 7.25 per cent, on average, for the last 30 years, according to a Reserve Bank of Australia report.

Thankfully, state governments have acknowledged how tough it can be for us first home buyers, easing our climb up the property ladder with a handy grant, which may help reduce the size of your home loan and mortgage repayments. Before you dive head-first into buying a home after one mention of free money, have a read of this quick guide to the basic grant rules and discover how much you may be entitled to.

Can I get my hands on some grant money?

If you’re thinking about using your grant to help buy a 17-bedroom mansion in Darling Point, think again. Most of the state grants impose limits on the purchase price of your home, which usually sits somewhere between $500,000 to $750,000, according to government First Home Owners Grant websites.

Additionally, many of the states require that you purchase a new home with your grant, due to the massive amount of such homes being built to cope with increasing demand. You may also need to live in your new home for six months after purchase, and generally at least one resident of the home must be an Australian citizen.

How much free money can I have?

You’ll be jumping for joy to know that provided you meet a few conditions, you’ll be entitled to a grant of at least $10,000.

If you’re in Tasmania or Victoria you’ll be jumping even higher, as you may be entitled to $20,000, which could almost make up half of the deposit on a flat or unit, providing a massive help for those attempting the leap onto the bottom rung of the property ladder.

Northern Territory’s state government goes even farther to help young home buyers, offering a whopping $26,000, the largest grant of its kind in Australia.

For more useful information and advice, get in touch with experienced home loan brokers like us, who will be able to provide you with exact details of your state’s first home scheme and help find the best home loan for your needs.