FHOG Scheme, Its Significance For The First Time Home Buyers In Australia

FHOG is an acronym of the First Home Owner Grant and it is a scheme that was introduced way back in 1st July 2000 to counteract the effect of GST on home ownership. FHOG is a national scheme and is funded by the various states and Union territories of Australia. Very beneficial for first time home owners seeking home loans in Australia.

What makes the FHOG scheme lucrative?

Under the FHOG scheme, a one-off grant is payable to the first home owners satisfying the eligibility criteria. If you need additional information about the First Home Owner Grant then select the state or the union territory where you intend to purchase your house. An experienced home loan or mortgage broker will be able to easily guide you with the process.

Prior to investing in your first home, you need to go through some important facts. The home buyer can receive up to $20,000 along with the FHOG. If you are investing in a new home that is valued at more than $ 750,000 then you may be eligible for FHOG or the First Home Owner Grant. While buying your house you also require spending on stamp duties. There are other exemptions and concessions in this regard.

Entities that are willing to purchase a home in an Australian state or union territory can use the FHOG as a deposit. The home buyers can use the FHOG calculator to view the grants they are eligible for. Understand that if you are building your house then your grant is not available unless the construction work starts.

The Western Australia First Home Owners Grant or WAFHOG is at $ 10,000 and this grant is for the first home buyers who are investing in a home that is valued under $ 1,000,000.

If you are investing in a new home that is valued at more than $750,000 then you may be eligible for a First Home Owner Grant or FHOG. If you are eligible for FHOG and the home in which you are investing is located in Victoria then you receive $20,000. However, if the home is not located in regional Victoria then the grant is $10,000.

FHOG (First Home Owners Grant)

The FHOG is a grant targeted at first time home buyers. The FHOG is different from a loan and therefore it does not incur any debt or interest rates upon non-repayment. In the context of grants, one needs to understand that they can be given by governments or foundations. The grants to individuals can be of scholarship type or donation type.

With respect to the First Home Owners Grant, it can be said that they are typically awarded to entities on the basis of a few criteria. These criteria can be financial needs as well as income qualifications. In Australia, the concept of FHOG is common and is awarded to the first time home buyers.

Many states in Australia have started to grant programs to facilitate low-income individuals purchase their first home.

The FHOG is beneficial to many native Australians. Under the scheme, the first time home buyers can receive an amount of $7,000 once-off payment to counteract the GST costs. This program is offered throughout Australia. However, the scheme is funded by the various states and territories. The scheme is subjective to legislation.

History of FHOG

Way back in 2008, the Australian government had announced a boost to the FHOG scheme with the objective of alleviation of the Global Financial Crisis. Many consider that the boost stimulated the housing industry at that point in time and helped reduce home loan rates. The stimulus package consisted of $14,000 available for the first time home buyers. It consisted of $7000 to those who are investing in their established home for the first time. The scheme continued from October 2008 through September 2009.

Between October 2009 and December 2009 the grants were halved implying that those who are building or purchasing new homes were now eligible for $7000 while those investing on established homes were eligible for $3500 grant.

From January 2010 onwards the Commonwealth scheme ended. However, the first home buyers continued receiving monetary assistance because of the First Home Owner Grant that is worth $7000 for new as well as established properties.

The first time home buyers in Australia can get the benefits of the FHOG. They can also avail home loans from appropriate financial institutions like banks. Therefore, if you are contemplating in owning a house in Australia with the help of a loan then you can check the banks that offer home loans in Australia at affordable rates. There are many businesses and mortgage brokers in Australia that furnish important information on home loan rates. By doing home loan comparison you can get the best home loan rates and this helps you to buy or build your house in the country.

Your Finance Advisor helps you get rid of all the hassle and does all the hard work for you. You can tell us about your dream home and let our lending specialists find your ideal home loan, from a selection of over 40 lenders including major banks.