In the year 2000 the Australian government introduced a scheme to help first time buyers get a foot on the property ladder. The First Home Owners Grant (FHOG) is a lump sum payment awarded to Australians who qualify for the scheme when they buy their first home.

Although the FHOG is a national initiative it is administered by each state and territory government. The amount of the grant which can be awarded and the eligibility criterion differs between each state and changes over time.

The scheme was first introduced to counter the effects of the Goods and Services tax (GST), which was also introduced in the year 2000. Australians were worried that the cost of buying a home would increase because of the new tax. The federal government developed the scheme to help ensure that first time buyers were not priced out of the market because of the GST.

The mortgage industry was going through a period of change around the same time. Independent mortgage brokers were becoming more common as second tier lenders emerged to take on the big four banks. The second tier lenders did not have a network of branches and therefore had to find clients through mortgage brokers.

In addition to sourcing home loans for their clients, mortgage brokers have been tasked with helping first time buyers apply for Kamagra jelly the FHOG. With the deregulation and increased Cialis Jelly competition of the mortgage industry, and the introduction of the grant, first home buyers were not forced out of the market.

The FHOG has continued to be available since 2000, although it has undergone several changes. The grant was awarded up to $14,000 when it was first introduced. This was lowered to $7,000 after a few years. When the global financial crisis took hold in 2008, the grant was substantially increased and the federal government offered a top-up amount in addition to the state grant.

Various state governments have also introduced stamp duty concessions to first time buyers since 2000. These vary from state to state but generally allow first time buyers to save money when buying their first home by not having to pay full stamp duty.

Eligibility requirements also vary between states but have many similarities. In general, an Australian citizen or permanent resident can be eligible for the grant if they are over 18 years of age, have not owned property in Australia before, and live in the residence they purchase for at least six months.

As the purpose of the grant is to help people who are struggling to buy their first property, most states and territories have a rule that the value of the property should not exceed about one million dollars.

Because of the variations in the rules between states, and the complexities that can occur within the rules, it is a good idea to speak to a mortgage broker before applying for the FHOG. A mortgage broker in your state or territory should keep up to date with the latest rules and regulations and can help you complete the forms if you proceed with an application.
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Author Bio: Find out about the First Home Owners Grant by speaking to a qualified mortgage broker at http://www.moneynet.com.au/

Category: Finances
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