🎄12 Days of B&W Finance - Day 1🎄
Hey Black & Whiter’s!
For the month of December, over the next 12 days, we will be releasing cool new information on all things finance related with what we are calling “The 12 Days of Black & White Finance”. Let’s kick things off with the first home owners grant (FHOG for short) for all you aspiring property hunters. After all, tis’ the season!
"On the first day of Christmas, Black and White Finance gave to me: A head start on my first home"
What is the First Home Owners Grant?
Put simply, if you’ve never owned a home before and the property is under a certain value (depending on your state), the government will gift you a $10,000 grant – and you don’t even need to wait for Christmas!
How can I tell if FHOG applies to me?
To be eligible to receive the grant, there are a few prerequisites you need to meet first;
You must be an individual, not a company or trust
You must be over 18
You, or at least one person you’re buying with, must be an Australian citizen or permanent resident
Plan to live in this property as an owner occupier for 6 consecutive months (within the first 12 months of owning the property)
That being said, you won’t be eligible if you;
Have previously owned or co-owned a home in Australia or
Have received an Australian first home owner grant previously (it’s a one time thing!)
Rules to Remember
The FHOG is changing in 2020 in a few key areas, namely for first home buyers who have only saved a 5% deposit, effectively helping them buy sooner without paying lenders mortgage insurance premiums. Here’s some rules you can all jot down in your notebooks;
If you've saved 5% of the purchase price of your property the government will guarantee the remaining 15% of the deposit - so they will basically help you avoid paying mortgage insurance.
You still need to borrow 95% of the property value, but you can avoid mortgage insurance.
Your mortgage purpose must be an owner-occupied loan with principal-and-interest repayments - so it cannot be for investment or interest only repayments.
You can't be earning more than $125,000 a year ($200,000 combined for couples).
First in best dressed as the scheme is limited to 10,000 borrowers, each year apparently.
The value of eligible homes under the scheme varies by state and city/region.
The scheme starts, or is supposed to be starting, on 1st January 2020.
It's important to note that NAB are the first major lender who the government are appointing on the new scheme - we're watching this space closely and will be updating you through our future blog posts.
Property Requirements
“What kind of properties do I need to look out for to get this grant?”, I hear you ask. Well rather than just tell you, let me show you all the differences Australia has between states for the FHOG. The following must have a combined total less than;
Final Thoughts
If you’re eligible and always dreamed of one day having a place of your own for Santa to visit with all his gifts then come speak with us and let us help you achieve that dream! We’ll do all the hard work for you and if you can get a couple grand off the total price then I say why not?
Reach out to us today
0448 890 186
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We’re also keen to receive your questions and if you want to know of some other great terms or rates on offer at the moment, and would rather email, please send a note to peter@blackandwhitefinance.com.au
* Your full financial situation would need to be reviewed prior to any acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria.