Everything You Need to Know About the Victorian First Home Owners Grant Changes

By April 3, 2017Home Loans
Everything You Need to Know About the Victorian First Home Owners Grant Changes

The Victorian Government has recently announced that it intends to increase the First Home Owner Grant from $10,000 to $20,000 for new homes built in regional Victoria valued up to $750,000. Eligible first home buyers of new homes in metropolitan Melbourne will continue to receive the $10,000 FHOG.

The most frequently asked questions are answered below:

1. What is the new $20,000 FHOG?

The current First Home Owner Grant (FHOG) is a payment of $10,000 available to eligible first-home buyers who buy or build their new home valued up to $750,000.

The new, increased FHOG payment of $20,000 is for first-home buyers who buy or build their new home valued up to $750,000 in regional Victoria.

2. What is a new home?

A new home includes:

  1. A newly built home,
  2. An existing property which is being sold for the first time as a new residential premises,
  3. A land and building package, or
  4. Vacant land on which you will build a new home

Eligible first-home buyers in metropolitan Melbourne will continue to receive the $10,000 FHOG and other applicable assistance.

All first-home buyers in metropolitan Melbourne and regional Victoria must still meet the other FHOG eligibility criteria.

3. What is regional Victoria?

This change affects first-home buyers who buy or build a new home on land in the following municipal councils:

4. What are the key dates you need to know?

The date you sign your contract to buy or build your new home is the key date. Settlement date is irrelevant.

The $20,000 FHOG will be applicable to:

  1. Contracts entered into from 1 July 2017 to 30 June 2020 for the purchase of a new home in a regional area,
  2. Comprehensive home building contracts entered into from 1 July 2017 to 30 June 2020 by the owner of land wholly in regional Victoria, or a person who on completion of the contract will be the owner of land wholly in regional Victoria, to have a home built on the land, and
  3. The building of a home wholly in regional Victoria if the building work commences between 1 July 2017 and 30 June 2020 inclusive

If you are entitled to the FHOG but sign a contract for a first home in regional Victoria before 1 July 2017, you will not be eligible for the $20,000 payment. This is even if you settle on or after 1 July 2017. However, you will still be eligible for the $10,000 FHOG.

5. What types of home/construction qualify?

The eligible transaction can be a contract for:

  • The purchase of a new residential premises (which can be a newly built home or premises that are being sold as a new residential premises for the first time),
  • A comprehensive home building contract, or
  • The construction of a home by an owner builder

6. Who will qualify?

You will qualify if:

  • You purchase or build a new home wholly in regional Victoria,
  • Your contract is signed on or after 1 July 2017 and no later than 30 June 2020, and
  • You meet all the other FHOG eligibility criteria

Owner builders who begin building their home wholly in regional Victoria within this 1 July 2017 to 30 June 2020 period and meet all the other FHOG eligibility criteria also qualify.

For more information on how to take advantage of these changes or on how much you are entitled to, contact SFE loans today!

All information taken from http://www.sro.vic.gov.au/housing