From 1 July 2016, the Great Start Grant of $15,000 is being replaced by the Queensland First Home Owner’s Grant of $20,000.
The increase in the grant has created quite a bit of enquiry for first home buyers looking to enter the market. Some of the most common questions we have been asked are:
1) Who is eligible for the Queensland First Home Owners’ Grant?
To be eligible for the grant, you must:
– be at least 18 years of age
– be an Australian citizen or permanent resident (or apply with someone who is an Australian citizen or permanent resident)
– not previously owned property in Australia
– be building or buying a new home for under $750,000 in Queensland
2) I have just signed a contract to purchase a new home, am I eligible for the extra $5,000?
The grant is only available to people who have a contract dated after the 1st of July 2016. Additionally, you are not eligible for the $20,000 grant if a contract replaces another contract that was made before 1st of July 2016. However, you may still be eligible for the $15,000 grant.
3) How long will the Queensland First Home Owners’ Grant last for?
At this stage, the $20,000 grant is planned for 12 months only without clear indication on what will replace it.
4) Can I use the Queensland First Home Owners’ Grant as a deposit for my home?
In order to purchase a property, a minimum deposit of 5% of the purchase price is required. In most cases the 5% has to be considered “genuine savings” where you have progressively saved the deposit for a period of 3 months.
In some cases this means that the Queensland First Home Owners’ Grant would not be considered genuine savings, however there are several strategies that can be used to help overcome the genuine savings requirement and allowing you to use the grant as a contribution towards buying your home.
If you or a family member require assistance with securing the Queensland First Home Owners’ Grant as well as finance for your first home, please call Urban Home Loans on 3841 3841.