In June this year, the Queensland (QLD) government made an announcement that the First Home Owner’s Grant will continue but will be reduced by $5,000 from $20,000 to $15,000. Take the first home buyers eligiblity test and updated guide for 2019.
Why Did Queensland Decide to Reduce the Grant to $15,000?
The Queensland government reduced the grant from $20,000 to $15,000 on 30th June 2018. If you have signed a contract to build with a builder between 1st July 2016 to Midnight 30th June 2018 you could still be eligible, but if you have signed after this date the grant has changed back to $15,000.
Some benefits of the grant mean that first home buyers can:
- Enter the real estate market quickly
- Consider other properties that they previously could not afford to buy
Can I still be eligible for $20,000 First Home Buyers Grant?
Yes, you could still be eligible for the $20,000 Queensland First Home Buyers Grant but it depends on your contract date.
- $15,000 grant is on contracts dated
- October 2012 to 30 June 2016
- 1 July 2018 or later
- $20,000 for contracts dated from 1 July 2016 to 30 June 2018
Eligibility for the $15,000 First Home Buyers Grant
You have to fulfil the following criteria in order to qualify for the grant:
- Be an eligible first home buyer
- Must enter into an agreement to buy or build a new house that is below $750,000
It is important to note that the first home buyers grant is still only relevant to new properties and has not changed.
First Home Owner Grant – Case Study
In order to get a better understanding of the entire process, let’s take a look at an example. Suppose, you and your partner currently live in a rented apartment and planning to buy your first home. You are trying your best to save as much money as you can and be eligible for a $15,000 first home owner grant.
Different types of properties, including off-the-plan, under-construction property, and a new house (construction completed) can qualify for first home buyers grant.
Below are the eligibility criteria for these properties:
- Off-the-plan – It includes the projects where no construction has taken place yet but they qualify for construction.
- Under Construction – It includes those properties where the construction is still underway and not yet completed.
- A Newly Constructed Property – You will qualify for a $15,000 grant if the construction of the property has been newly completed. In addition to that, you also fulfil the criteria of first home buyers grant.
So far, you have saved $20,000 and plan to secure at least a 5 per cent deposit. Suppose, you plan to buy the second option (under construction) for $460,000, then you need to save $3,000. If you manage to save the required deposit and sign the agreement before the year ends, you become eligible for the grant.
Chat to Hunter Galloway today about how we can sort out your financing for the First Home Owners Grant on 1300 088 065 or email Nathan at [email protected]
What other options are there for first home buyers?
If you have not owned property before you could be eligible for the First Home Super Saver Scheme. This allows you to make extra payments to your superannuation account, and in effect helps you save money for a deposit faster as you pay less tax.
Next steps and buying your new home
Our team here at Hunter Galloway is here to help you buy a home in Brisbane. Nathan & Joshua Vecchio are Senior Mortgage brokers who specialise in making your home journey easy.
If you want to get started, please get in touch here and we can book a time that suits you – either a phone call information session or a face to face meeting (which doesn’t cost anything for you).
Further reading for Home Buyers…
- 🏡 For our comprehensive guide for First Home Buyers, check out this page here.
- 🏡 Looking at getting a loan, check out our Complete First Home Buyers guide.
- 🏡 Home Loan Guide to Brisbane
- 🏡 And don’t forget the costs of buying which we covered in detail here.