First Home Buyers and the First Home Owners Grant (FHOG) for Mortgage Loan
According to the REIA or Real Estate Institute of Australia, the affordability rate nowadays of houses can be considered the lowest in 22 years. This drop in the affordability rate of houses is experienced by every territory and state except Tasmania. In New South Wales, 38.3% of the household income is now needed in order to pay for houses, making this state the most expensive one. As for the Australian Capital Territory or ACT, the percentage of household income needed in order to pay for mortgage loans is about 20.7%. As for other states and territories such as Northern Territory, Queensland, South Australia, Victoria, and Western Australia, the affordability rate has also dropped, causing an increase in the percentage of income needed in order to support mortgage loan payments.
If you are one of the first-time home buyers in Australia who's worried about expensive house payments, you can actually take advantage of the government's mortgage loan program -- the First Home Owner Grant or FHOG.
Basics of FHOG
The FHOG was actually introduced on the first day of July, 2000. This program was established by the Australian government so as to make up for the increase in prices as an effect of the Goods and Services Tax or GST. Based on this program, first-time home buyers will be given $7,000.00 as repayment for expenses made in acquiring or constructing houses. In March and October of 2001, the amount included in the mortgage loan was increased but this increase was only applicable to first-time home buyers who have entered into a house building contract within a certain period. The basic mortgage loan is currently $7,000.00. The aim of this program is to neutralize the effects of GST on house rates, encouraging many Australians to finally purchase their own houses.
Requirements of FHOG
Before you apply for a FHOG, try to learn more about the basic requirements of this grant. Basically, you are a qualified applicant for a grant if you are an Australian citizen, are 18 years of age, and have entered a home building contract for the first time on or after the first of July, 2000. Additionally, you, as an applicant, are required to occupy your new home continuously for at least six months within a year of completion of the actual house construction or settlement. Moreover, there are other specific requirements and exceptions that you have to take note of before passing an application. To confirm your eligibility status, you will have to provide certifications and written documents to serve as proofs. These requirements are applicable to you wherever state you are currently living since a uniform legislation regarding FHOG has been approved for all Australian territories and states. As for the application forms and administration, however, they may vary depending on the territory or state.
Whether you plan to buy a new home through cash payments or a mortgage loan, the FHOG can greatly help you with your expenses if you're a first-time home buyer. The money given through this program may not be used as a deposit prior to the signing of a sale contract but you can use it in any way you can in order to reduce home payments.
First Home Buyers and the First Home Owners Grant (FHOG) for Mortgage Loan
According to the REIA or Real Estate Institute of Australia, the affordability rate nowadays of houses can be considered the lowest in 22 years. This drop in the affordability rate of houses is experienced by every territory and state except Tasmania. In New South Wales, 38.3% of the household income is now needed in order to pay for houses, making this state the most expensive one. As for the Australian Capital Territory or ACT, the percentage of household income needed in order to pay for mortgage loans is about 20.7%. As for other states and territories such as Northern Territory, Queensland, South Australia, Victoria, and Western Australia, the affordability rate has also dropped, causing an increase in the percentage of income needed in order to support mortgage loan payments.
If you are one of the first-time home buyers in Australia who's worried about expensive house payments, you can actually take advantage of the government's mortgage loan program -- the First Home Owner Grant or FHOG.
Basics of FHOG
The FHOG was actually introduced on the first day of July, 2000. This program was established by the Australian government so as to make up for the increase in prices as an effect of the Goods and Services Tax or GST. Based on this program, first-time home buyers will be given $7,000.00 as repayment for expenses made in acquiring or constructing houses. In March and October of 2001, the amount included in the mortgage loan was increased but this increase was only applicable to first-time home buyers who have entered into a house building contract within a certain period. The basic mortgage loan is currently $7,000.00. The aim of this program is to neutralize the effects of GST on house rates, encouraging many Australians to finally purchase their own houses.
Requirements of FHOG
Before you apply for a FHOG, try to learn more about the basic requirements of this grant. Basically, you are a qualified applicant for a grant if you are an Australian citizen, are 18 years of age, and have entered a home building contract for the first time on or after the first of July, 2000. Additionally, you, as an applicant, are required to occupy your new home continuously for at least six months within a year of completion of the actual house construction or settlement. Moreover, there are other specific requirements and exceptions that you have to take note of before passing an application. To confirm your eligibility status, you will have to provide certifications and written documents to serve as proofs. These requirements are applicable to you wherever state you are currently living since a uniform legislation regarding FHOG has been approved for all Australian territories and states. As for the application forms and administration, however, they may vary depending on the territory or state.
Whether you plan to buy a new home through cash payments or a mortgage loan, the FHOG can greatly help you with your expenses if you're a first-time home buyer. The money given through this program may not be used as a deposit prior to the signing of a sale contract but you can use it in any way you can in order to reduce home payments.