How do you know if this First Home Owners Grant could apply to you?

If you can say YES to each of the following points, then you may be eligible for the first home owners grant:

• The buyer(s) must be an Australian citizen or permanent resident (or applying with someone who is).
• The buyer(s) must be at least 18 years of age.
• The buyer(s) must be buying or building a brand new
• The buyer(s) must not have previously owned property in Australia that you lived in.
• The value of the home including the land is less than $750,000.
• The buyer(s) must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.

The cash grant is released at settlement for the purchase of a completed Queensland property once the title has been exchanged. For a Queensland house and land build, the cash grant is released during the construction of the property. This can vary between lenders and you need to speak with your hfinance mortgage broker in consideration with the wording of the building contract.

The new changes by the Queensland Government will assist First Home Owners who are looking to get into their first property but are struggling to get together enough of a deposit, this first home owners grant can be used as funds to complete towards the home loan.

What about Stamp Duty Costs For First Home Buyers In Queensland?

As a first home buyer, you could also be eligible for the First Home Concession. This is a Stamp Duty concession on the transfer duty costs at the time of settlement. In Qld, if you purchase a property worth $550,000 or less, as a first home buyer, you will pay $0 duty. Therefore, if the value of your property is more than $550,000, you will pay stamp duty.

Eligibility for a Queensland Stamp Duty Concession

To be eligible for a first home stamp duty concession when you buy or acquire a home, you must: –

• be at least 18 years of age
• have never claimed the first home vacant land concession
• have never owned property anywhere in Australia or overseas
• move into it with your personal belongings and live there on a daily basis, within 1 year of settlement
• not sell or transfer all or part of the property before you move in.

To keep the benefit of the first home stamp duty concession in full after you move in, you must not dispose of all or part of the property within 1 year. A partial concession may apply if you dispose within 1 year.

Can I use a Family Guarantor loan as a First Home Owner in Queensland?

A Family Guarantor, also known as a family pledge is a mechanism available for borrowers who are looking to enter the property market, using the security of family property in substitution of a cash deposit. Lenders will allow the arrangement to be in place with the borrower’s parents or immediate family to be the guarantor on the loan, to read more here how a family guarantor loan can assist first home owners in Queensland.

What is the process around property valuation for first home owners?

When you apply for a new mortgage, the bank will conduct a credit assessment to ensure you are a suitable borrower. They will review your current and past employment history, income and expense levels, savings, credit history and assess your ability to repay the proposed mortgage.

Once satisfied, the bank will issue a conditional approval to lend a certain amount of finance. A condition on the approval will ensure a ‘satisfactory valuation is returned’. This is a condition that must be satisfied before the bank will issue a formal approval and loan documents for settlement. Read more here.

What are some tips to save for your first home deposit?

Working out how much to save for your first home, can be a bit confusing. Deposit, stamp duty, Off the Plan, Government Grants – it can get a bit much. How much do you need? What is your budget? It can all be a bit hard to work out, especially when you are trawling fancy real estate websites – thinking, that looks nice. Read here to get some tips to save for your first deposit. To read about your borrowing capacity and how to increase your capacity before submitting your first mortgage application, read here.

Kirstie Penton is your local Nerang and Gold Coast Mortgage Broker, and I’m waiting to hear from you today. Living in the Nerang and Gold Coast region, she understands the local trends and financing issues that Gold Coasters and First Home Buyers can face and how it works.