First Home Owner's Grant South Australia

Everyday the price of properties across Australia continues to rise and makes the idea of owning a home a mere dream. However, there’s no need to despair, the Australian government has home owner grants available for first time home buyers to help those dreams become a reality.

You can apply for the First Home Owner's Grant (FHOG). It offers first time home buyers a one-time lump sum of money when they are buying a new or heavily renovated home. The grant is ideal for those who plan to make the property they are buying their primary residence.

If you’re from SA and are thinking about applying to the FHOG then you’ve come to the right place.

In South Australia, first time home buyers who buy newly constructed or heavily renovated homes valued less than $575,000 may receive up to $15,000.

The $15,000 may change depending on the annual budget set by SA. In the past some other states have seen a decrease in the grant amount, but at the moment the grant amount has not changed for SA.

The grant is typically paid when the ownership transaction is complete. If you are building your own property, the grant typically gets paid when building work starts—usually when the home’s foundations get built (and you provide the invoice). 

You may use the grant as part of your deposit, but keep in mind you don’t receive the money until the sales transaction is complete. Also the grant will typically not cover the entire deposit for your future home. Reach out to your home loan lender to check their policies. Unfortunately, you cannot buy land with the FHOG.

The grant is paid per new home or property than per individual, but each individual involved with the purchasing of the house needs to meet certain requirements for eligibility:

• Must be at least 18 years of age
  
• Be an Australian citizen or permanent resident (or applying with someone who is)
  
• You or your buying partner must not have previously owned property in Australia that was your primary residence before 1 July 2000
  
• Property value is $575,000 or less
  
• Intend to move to the house as your main place of residence within 1 year of completing the transaction
  
• Must be living there continuously for 6 months.

Applying to the FHOG is pretty straightforward. To submit the application you can either send it through an approved bank or lender or with the Office of State Review (by post or email).

Application steps:

• Download the official application PDF
• Attach supporting documents such as 100 points of ID and proof of purchase
• If you are building on vacant land you’ll need the building contract
• List of renovations if your bought an existing property
• Email, post or give your lender the application.

If you apply through the RevenueSA, the grant will be paid to your preferred bank account within 5 days after approval.

You can email your application to: fhog.support@sa.gov.au

There is the First Home Super Saver Scheme which allows first time home buyers to use their super to save up for a deposit. Through this scheme, you can sacrifice up to $15,000 of your salary per year towards the scheme. By doing this you receive a discounted tax rate of 15% and your funds can earn a specific rate of return. When you are ready to buy your house you can withdraw the money (and the earnings) to use for your deposit. Generally, this scheme is more tax-effective than saving through a traditional bank account, but it tends to be one of the less popular scheme options.

If you’re a single parent you may qualify for the Family Home Guarantee. It allows 2,500 single parents per year to qualify for 2% deposits without having to pay LMI. This recently introduced scheme is for previous owner-occupiers and new home buyers.

SA also offers HomeStart Finance which provides home loans to South Australians. It can be used to help cover the upfront costs of Stamp Duty. It can also help reduce other upfront costs to increase your borrowing power.

Finally, there is New Home Guarantee which was previously known as the First Home Loan Deposit Scheme. Every year the scheme gives federal government support to buy a home to the first 10,000 home buyers that apply. Through this scheme new home owners can qualify for home loans as little as 5% LVR without paying for LMI.

• New South Wales
  
• Victoria
  
• Queensland
  
• West Australia
  
• Tasmania
  
• Northern Territory