Are you a first home buyer in Australia looking to purchase your first home? If so, you may be eligible for the First Home Buyers Grant (FHOG). The FHOG is a one-off payment to help first home buyers purchase their first home. It is available to eligible applicants who meet certain criteria.
But is the First Home Buyers Grant means tested? In other words, does the amount of money you earn or the value of your assets affect your eligibility for the grant?
The answer is yes, the First Home Buyers Grant is means tested. This means that the amount of money you earn or the value of your assets will affect your eligibility for the grant.
To be eligible for the FHOG, you must meet certain criteria. These include:
• You must be an Australian citizen or permanent resident.
• You must be over 18 years of age.
• You must be buying or building a new home as your principal place of residence.
• You must have an income of less than $125,000 per year for an individual or $200,000 per year for a couple.
• You must have assets of less than $750,000.
• You must have not previously owned a home or had an interest in a home.
• You must have entered into a contract to buy or build a home before 1 July 2020.
• You must have lived in the home for at least six months within 12 months of completion.
If you meet all of the above criteria, you may be eligible for the FHOG. The amount of the grant is $10,000 for individuals and $20,000 for couples.
However, if you do not meet all of the above criteria, you may still be eligible for the FHOG. The amount of the grant may be reduced if your income or assets exceed the limits set out above.
For example, if your income is between $125,000 and $160,000 for an individual or $200,000 and $250,000 for a couple, the amount of the grant will be reduced on a sliding scale. If your income is above these limits, you will not be eligible for the FHOG.
Similarly, if your assets are between $750,000 and $1 million, the amount of the grant will be reduced on a sliding scale. If your assets are above $1 million, you will not be eligible for the FHOG.
It is important to note that the FHOG is not available for existing homes. It is only available for new homes.
The First Home Buyers Grant is a great way to help first home buyers purchase their first home. However, it is important to remember that it is means tested. This means that the amount of money you earn or the value of your assets will affect your eligibility for the grant.
If you are a first home buyer in Australia and you are looking to purchase your first home, it is important to understand the eligibility criteria for the FHOG. This will help you determine whether you are eligible for the grant and how much you may be eligible for.
At The Home Loan Partners, we understand that buying a home can be a daunting process. That’s why we are here to help. Our team of experienced mortgage brokers can help you navigate the home loan process and find the right loan for you. We can also help you understand the eligibility criteria for the FHOG and determine whether you are eligible for the grant.
If you have any questions about the First Home Buyers Grant or the home loan process, we would love to help. Contact us today and let us help you get into your first home.