First Home-Owner Grant
FHOG is available when you buy or build your first new home. You will receive the sum of $10,000.00. Check whether you are eligible for the grant.
Are you eligible for the FHOG?
- If you are in a defacto relationship and your partner already owns a property;
- If your parents are registered proprietors on the title because you don’t have a sufficient borrowing capacity,;
- If you are receiving an inheritance and you are a first homeowner; or
- If you receiving a property from a trust once you attain the age of 18 or 25?
Seek legal advice if you believe you fall under the above category.
If you are buying or building your new home, you will receive the sum of $10,000.00.
If you are building a new home in regional Victoria, you will receive $20,000.00 if you sign a contract between 1 July 2017 and 30 June 2021.
It is important to note that the contract price for construction must be less than $750,000.00 and the home itself should be less than 5 years old in order to be eligible for the grant.
Stamp Duty
If you are a first home owner, you are not required to pay stamp duty if your property is valued at less than $600,000.00.
The state government has introduced a land transfer duty waiver for residential properties and commercial properties.
Stamp duty relief for residential properties under $1 million
- Waiver of 50% for new residential properties
- Waiver of 25% for existing residential properties
- Waiver of 25% for vacant residential land
Contracts must have been entered into between 25 November 2020 and 30 June 2021.
Stamp duty relief for commercial and industrial properties:
- Waiver of 50% when purchasing commercial/industrial properties
Contracts must be entered into after January 2021.
Home Builder Grant
The Australian Government announced on 4 June 2020 that owner occupiers are eligible for a grant when renovating existing homes, buying off the plan homes and building a new home.
Eligible home-owners can apply for a grant of $25,000.00 if they enter into a contract between 4 June 2020 and 31 December 2020. It is important to note that construction must commence within 3 months of the contract date.
You must apply before 31 December 2020 and the residential home must be your Principal Place of Residence. Penalties do apply if you receive the grant with a false application.
Lenders Mortgage Insurance
LMI is an insurance policy for banks in the event that the borrower cannot afford to make the repayments on their loan.
Generally, a lender will require you to pay LMI if the deposit that you have saved up is less than 20%. This is an additional cost that you are required to pay on top of your home loan.
Buying your first home is a major financial decision so it’s important to understand your financial responsibilities and what help is available to you.
Contact MSA Lawyers to learn more.
