What Is The FHOG & How Do You Apply For It?

Common questions we get asked all the time in relation to the FHOG are:

What is the Queensland First Home Owners’ Grant?
How do I apply?
What is the first home buyers grant?
How much is the FHOG?
Can I use the FHOG as a deposit?

Buying your first home is an exciting milestone in any persons’ life, but it is also extremely daunting. So in 2000, the Queensland Government introduced the Queensland First Home Owners’ Grant (FHOG) to encourage people to get into their new homes sooner. The grant amount has changed a few times since it
was first introduced, however it currently stands at $15,000.

Whilst there are some conditions to be eligible to receive this grant, the Government has actually made it relatively easy for people to access.

Eligibility includes things such as:

  • You must be at least 18 years of age
  • Be an Australian Citizen or permanent resident or be applying with someone who is
  • You (and anyone you may be applying with) must not have previously owned a property in Australia.
  • You must be buying or building a new home (so never been lived in before!).
  • The value of the home, including the land, must be less than $750,000.
  • You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.

You can check your eligibility on the Queensland Government website here, however any home loan lender will be able to go through this with you when applying for your home loan. It is important to be honest about your intentions with your lender so they can help give you the best possible advice. One of the most common questions asked in relation to this grant is can it be used as a deposit for a home loan? The great news is yes! You can absolutely use this towards a deposit, as the grant is usually paid to your home lender and applied directly to your home loan. However, not all institutions allow this, so make sure you let your lender know if this is something you’re wanting to do. If you’re looking for help with a home loan deposit, you may also be eligible for the First Home Loan Deposit Scheme. You can find out more about this in our blog about Home Loan Deposits.  Now, while $15,000 off your home loan seems like a no brainer, there are a couple of things you will need to consider before you jump in. If you do not plan to live in your home for at least 6 continuous months in the first year, or you plan to rent it out immediately then you will be ineligible for the grant. In fact, if you receive the grant and your circumstances change, you will be required to pay the grant back! Recently, the government released the HomeBuilder grant, which will provide eligible owner-occupiers, including first home buyers, a grant of $25,000 to build a new home. All the facts and figures are still being released, so check back with us soon to find out more information.