Over two million Australians own a second property. Some do it to invest in real estate and increase their wealth, while others simply want to improve their lifestyle with a holiday home. Whether you share the same sentiment or not, purchasing a second home is a huge decision not to be taken lightly. Continue reading […]
Five Common Questions About the First Home Owner Grant in Tasmania
By Deltos Finance on March 11, 2024
Are you considering purchasing your first home in Tasmania soon? Before you apply for home loans, it pays to know that the Tasmanian government offers various grants and incentives to help you save money on your first big purchase. You can start by learning about the First Home Owner Grant in Tasmania. Today, we’ve compiled a list of the top five frequently asked questions about this grant to help you.
1. What is the First Home Owners Grant (FHOG) in Tasmania?
The First Home Owner Grant (FHOG) in Tasmania is a government incentive that supports first-time home buyers in achieving their homeownership dreams. The grant provides eligible individuals or couples in Tasmania a one-off payment for buying or constructing a newly built residential property in Tasmania.
2. How much is the First Home Owner Grant in Tasmania?
The current FHOG in Tasmania is $30,000 and is available until 30 June 2024. With this amount, FHOG can help first-time home buyers in the region deal with the initial costs of buying a property and make homeownership more affordable & accessible.
3. What can the First Home Owner Grant be used for?
The First Home Owner Grant in Tasmania can be used for various purposes, including paying for the home, covering closing costs, or even setting up a home warranty insurance policy. You can use it as a home loan deposit but will typically need additional funds to cover the remaining deposit amount and other costs associated with buying your first home. As mentioned above, eligible applicants can also use it to construct a new home as long as the building is completed within 24 months of entering into the contract to build or lay the foundations if they’re owner-builders.
Simply put, you can utilise the FHOG in Tasmania to buy a new property, including a newly constructed home or a house and land package, or build a new home. However, you can’t use it to pay for renovations or home improvements on an existing property. Moreover, this government grant isn’t available for established homes or properties purchased through a trust or company.
4. Who is eligible for the First Home Owners Grant in Tasmania?
To be eligible for the FHOG in Tasmania, applicants must:
- Be an individual and not a company.
- Be 18 years old or over.
- Be an Australian citizen or permanent resident.
- Be a first-home buyer and intend to live in the purchased property as their primary place of residence for a certain period.
- Provide proof that they have, or will complete, an eligible transaction, such as a contract to buy a home or completion of building milestones (if the applicant is an owner-builder).
There are no specific income requirements for the First Home Owners Grant in Tasmania, but applicants must meet all other eligibility criteria.
5. How do I apply for the FHOG in Tasmania?
You can submit your application for the FHOG by applying for financing from approved agents. Lenders that are considered approved agents can submit your application directly to the Tasmanian SRO. What if you’re applying for home financing with a non-approved agent or lender? You can submit your FHOG application directly to the Tasmanian SRO through the online portal or by mail.
When applying through the Tasmanian SRO, you must submit within the following timeframes:
- Applications for new home purchases must be submitted within 12 months after settlement.
- Owner-builders must submit their applications within 12 months after the issuance of a certificate of occupancy or completion.
The following documents must be provided when applying through the Tasmanian SRO:
- Evidence of completion, such as a certificate of occupancy from the local council.
- Proof of identity, such as a driver’s licence or passport.
- Proof of income, such as payslips or tax returns.
- Proof of residency, such as a utility bill or bank statement
Do You Have More Questions?
We hope our answers to the most common questions about the First Home Owner Grant in Tasmania have helped you explore your options to fund your first property. If you have more questions like ‘What other government grants are available for first-home buyers,’ or ‘Can I get a First Home Owner Grant if I’m an existing homeowner?’, feel free to read our blog on how the First Home Owner Grant works.
Also, don’t hesitate to reach out. Our seasoned mortgage brokers in Hobart are ready to guide you in your mortgage journey, including exploring available government grants to help you fund your first home purchase. Give us a call now!
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