First Home Owners Grant QLD 2020
This is the ultimate guide to the First Home Owners Grant QLD in 2020.
And let me be clear about something:
This is NOT a lame First Home Owners Grant QLD guide written by egg heads in complicated legal jargon.
Instead, you’re going to get the simple breakdown of the $15,000 First Home Owners Grant, what you can qualify for right now and what will work even better in 2020.
So if you’re looking for all the answers on the First Home Owners Grant in Queensland you’ll love this guide.
Don’t have time to read the whole guide right now?
No worries. Let me send you a copy so you can read it when it’s convenient for you. Just let me know where to send it (takes 5 seconds):
Try the eligibility tester
The First Home Owners Grant is HUGELY popular this year.
In fact, you might be able to qualify for $15,000 from the government in 2019:
Or even the previous $20,000 First Home Owners Grant from 2018.
The question is:
Are you eligible for the First Home Owners Grant in QLD? 👇
Our eligibility test uses the First Home Buyers Grant QLD 2020 criteria, as detailed by the Queensland Government.
Is the first home owners grant still available in QLD?
The $15,000 First Home Owners Grant is still available in Queensland for home buyers who have signed a contract to purchase a new home, or a contract to build a home with a builder from 1 July 2018 and will be available into 2020.
If you had signed a contract of sale to buy a brand new house or a building contract with a builder to construct a home between 1 July 2016 and midnight 30 June 2018 you will be eligible for the $20,000 Queensland First Home Buyers grant.
How much is the first home buyers grant QLD?
The amount of the first home buyers grant in Queensland depends on when you signed the building contract:
|How much is the first one buyers grant QLD? 🧐||
$15,000 First Home Buyers Grant 💰
$20,000 First Home Buyers Grant 💰💰
|Cost saving on stamp duty 💵|
Buying a new home 🏡
Yes, if contract signed after 1/7/2018 ✅
Yes, if your property is in regional Queensland & contract is signed between 4/6/2020 and 31/12/2020 ✅
|Building a new home 🏗||
Yes, if build contract signed after 1/7/2018 ✅
Yes, if your property is in regional Queensland & contract is signed between 4/6/2020 and 31/12/2020 ✅
Buying an established (or existing) home 🏠
For a home to be considered new, the Office of State Revenue will need confirmation that the property has not been previously lived in, has not been previously sold as a place of residence and can be a substantially renovated home.
How do I get the $15,0000 great start grant?
If you sign a contract to buy a brand new property or build a new home in 2018 you could be eligible for the $20,000 first home buyers grant, or if you are buying a brand new property or building in regional Queensland!
The first home owners grant amount depends on when you signed the contract for your new home or construction build.
If you built a new home between June 2016 and June 2018 you could be eligible for the $20,000 first home buyers grant in Queensland.
If you signed a contract to buy a brand new home, or build a new house between 1/6/2016 and 30/6/2018 you are eligible for $20,000. However, if you signed the contract to build or buy after 1 July 2018 you are eligible for $15,000.
How to get the $20,000 first home buyers grant?
The regional home building boost grant was released in 2020 to provide an extra $5,000 after the purchase or construction of a brand new house, unit or townhouse valued less than $750,000. So in total, you will receive $20,000 from the Queensland Government!
Now the big caveat here is it is only available in regional Queensland, like Cairns, Toowomba and Townsville. Find out if your postcode is eligible here.
Aside from the location, the eligibility criteria are the same as the first homeowners grant with the exception that your contract must be entered into between 4 June 2020 and 31 December 2020.
The Queensland government sets its state budgets every year and can decide to continue or withdraw the first home owners grant at any time, we are fortunate when comparing to Sydney or Melbourne as their first homeowners grant isn’t as high as ours (go Queenslander)!
Living in Queensland is great, we win the rugby league and get a larger first home owners grant!
Read More: How to Buy a Home (Step-By-Step Case Study)
What are the first home owners grant rules in Queensland?
Wanna know the rules for applying fo the first home owners grant?
In this chapter we look at how to get the $15,000 first home owners grant, criteria and if you can use it as a deposit towards your next home.
Let’s jump right in!
QLD First Home Buyers Grant Rules: a Dead-Simple Explanation
There are a few rules when applying for the first home owners grant in Queensland that you and your partner or spouse need to meet.
The most important qualifying rule for the first home owners grant is that you have never owned a property, or a part of a property in your personal name in Australia before.
If you are purchasing a brand new home, it needs to be valued less than $750,000 and the property cannot have been lived in before.
On the other hand, if you are building a new home you need to purchase the block of land as per normal, and then when signing the building contract (learn more on our How to build a home guide) the value of the home including the land needs to be less than $750,000.
In both cases, you also need to live in the property as your main home for at least 6 months straight within the first 12 months of owning (or building) it.
How do I get the $15,0000 great start grant?
According to the Queensland Government, to be eligible for the Great Start Grant (now referred to as the first Homeowners grant) you must:
- ✅ You must be at least 18 years of age.
- ✅ You must be an Australian citizen or permanent resident (or applying with someone who is).
- ✅ You or your spouse must not have previously owned property in Australia that you lived in.
- ✅ You must be buying or building a brand new home.
- ✅ The value of the home including the land is less than $750,000.
- ✅ You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
Can a First Home Buyer Grant be Used as Deposit?
Some more good news is yes, you can use your $15,000 first home buyers grant towards your deposit.
That’s the great part about the grant, it allows you to start building faster or purchase a property much quicker.
The only caveat is that not all banks will consider the first home buyers grant as genuine savings, so you may need to contribute some extra cash towards your deposit which can be a few thousand dollars depending on the build price.
- ☑️ Finding, and buying your block of land
- ☑️Getting your builder’s contract signed, and what to look for (and what to look out for)!
- ☑️Helping get your home loan approved, we calculate what you can afford to pay each week and arrange a bank valuation for you at no cost to you!
- ☑️Managing payments to the builder from the bank, to make sure your home is built quickly and easily.
If you want to understand how much deposit you need to buy a place, speak with one of our mortgage brokers in Brisbane.
Nathan Vecchio is one of our senior mortgage brokers at Hunter Galloway.
What could make me ineligible for the $15,000 first home owners grant?
You can take our eligibility tester to see if you can apply for the $15,000 home owners grant.
The rules of the first home owners grant to apply to both you as the applicant, your age, residency status if you have received the grant before and the type of property you are looking at buying or building.
Let’s walk through what can make you ineligible for the grant.
Step by step.
1. Previous home ownership
The first home owners grant was created to help people into their first home, so you cannot have owned (or partially owned) property in your personal name previously.
This also applies if you are buying your first home with your spouse, or partner, they are not allowed to have owned property before in Australia.
If you’ve owned property before and lived in it you may not qualify for the first home owners grant.
Unfortunately, if your partner has owned a property before and they fall under the Queensland Government’s definition of partner (you are married, or living together on a ‘genuine domestic basis’ for 2 years or more) you may not be eligible for the $15,000 first home buyers grant.
If this is the case while you might not be able to apply for the $15,000 grant, you might still be able to apply for a stamp duty rebate.
2. The type of property
This is the one that usually catches most people. To qualify for the first home owners grant QLD you need to be buying a brand new home, or building a new home – it does not apply on existing properties or ones that have been lived in before.
The trickiest part of this is defining a substantially renovated home. In short, a substantially renovated home has had serious structural changes made, it was basically a knockdown and completely rebuild and all renovations need to happen before you buy it.
The type of property affects if you will receive the first home owners grant QLD.
The Queensland Government defines substantially renovated properties as involving structural building work such as:
- 🏗replacing or altering foundations
- 🏗replacing or altering floors or supporting walls (interior and exterior)
- 🏗lifting or modifying roofs
- 🏗altering brickwork to replace existing windows and doors
They do not consider a home to be substantially renovated if only cosmetic work like painting has been done, or a new kitchen has been put in for example.
3. Your property purchase value
Regardless of buying a brand new home, or building one the total value of the property needs to be under $750,000 to be eligible for the grant.
The only complexity with this is if you are building, where the total costs of your land added to your building costs (plus any additional variations like fences, solar panels, landscaping, etc) need to be under $750,000.
Put another way, if you paid $350,000 for a block of land, the build price was $400,000 and landscaping cost $50,000 your total purchase price or property value would be $800,000 and you would be ineligible for the grant.
To qualify for the first home owners grant QLD your property needs to be valued less than $750,000.
On the other hand, if you paid $200,000 for your land and total build price was $244,000 your total property value would be $444,000 and you would be eligible for the $15,000 first home owners grant.
4. Your age and need to be an Australian Citizen (or permanent resident)
To qualify for the first home owners grant in Queensland you need to be at least 18 years old, and you (or your partner) needs to be an Australian citizen or permanent resident. In either case, as with point 1, you and your partner cannot have received the Queensland First Home Owners Grant or any other home ownership grant in Australia.
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 here.
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.
Is it possible to have the grant taken off you?
Yes, we have seen cases where you can qualify for and get paid the grant but if you do not abide by the rules the government can force you to repay the grant.
You just need to understand your obligations in receiving the first home owners grant and make sure you:
- ✅ Move into the home within 1 year of buying it
- ✅ Live in the home as your principal place of residence for 6 months continuously
- ✅ Tell the office of state revenue within 14 days if you are unable to move into the home, or have to move out of the home before you have lived there for 6 months continuously
So just be aware of the conditions of the first home owners grant, and if you stick to them you’ll be fine! If you aren’t sure about your situation you can speak with our team, or call the Office of State Revenue on 07 3179 2500.
There are a few simple conditions of the first home owners grant that you need to be aware of.
Can you get the First Home Buyers Grant on established homes?
If you are a first home owner in Queensland looking at buying an established home, you would be ineligible for the $15,000 first home owners grant.
But you are able to claim the first home concession for transfer duty (also known as stamp duty)!
So while you might not receive the first home owners grant, you can save up to $8,750 in stamp duty concessions as a first home buyer on established home purchases up to $500,000.
How much do you save with Stamp Duty Concessions?
First Home buyers then pay a concessional stamp duty amount on purchases up to $550,000 and then over $550,000 there are no additional concessions or discounts.
This can be on both established units, and existing houses, here are a few examples.
|Purchase Price 🏡||
Stamp Duty (also known as transfer duty)
Stamp Duty Paid by First Home Buyers
Amount Saved on Stamp duty with rebate
Up to $500,000
What are the rules with the First Home Owners Transfer Duty Concession?
The requirements of the first home owners transfer duty concession are slightly different to the first home owners grant, so you need to be aware not to get caught out.
For example, with the first home owners grant you need to live in the property for 6 months continuously within the first 12 months of moving. And then if you want you can move out, rent the property, sell it etc.
With the First Home Concession, you cannot dispose of (i.e. sell, must live there) or rent out any room in the property for 1 year.
So if you qualified for both the First Home Owners Grant, and the First Home Concession you need to be aware that you need to live in the property for at least 1 year, and cannot rent out any rooms (including AirBNB ) to ensure you do not get caught out and lose your concession or grant.
If you aren’t sure about your situation get in touch with our team of First Home Buying experts to chat about your situation or call us on 1300 088 065.
How do I apply for the first home owners grant?
If you apply for a home loan through us we will help you complete the application for the $15,000 first home buyers grant along with all the supporting documentation.
When you apply for the Queensland First Home Owners Grant you will need to provide your supporting documentation like your contract of sale, along with the original application form (you can also download the First Home Owners QLD form here.)
In this section, we’ll walk you through what needs to be completed to get your $15,000 grant FAST!
How do I complete the first home owners grant application form?
We will help you fill out, and complete the paperwork to make it super easy!
The total First Home Buyers Application Form is 15 pages long, and have 7 main sections:
Section 1: Eligibility Criteria
As you can see from the example below, a qualifying first homeowner will answer yes to questions 1 to 7, and then no for questions from 8 onwards.
Section 1 of the First Home Owners Grant application form has the qualifying questions.
Section 2: Applicant Details
This section of the application form has all your basic personal information, name, address, contact details all the simple stuff for both you, and your partner. If there are more than 2 applicants you can just add an additional form.
Section 2 of the First Home Owners Application in Queensland has your basic contact information.
Section 3: Spouse Details
Section 3 is only there if you have a partner or spouse who is not an applicant that you detailed in section 2. If you do not have a partner or spouse you can skip this section and continue to section 4!
You’ll be happy to know Section 3 of the First Home buyers application form can be skipped if you are not applying with a partner or spouse.
Section 4: Property and Transaction Details
In section 4 you will need to include the details of the property you are purchasing, or building as well as the type of property.
Section 4 of the First Home Owners Grant Application QLD has the property details.
The options in section 4 include the below, only choose 1 option.
- Contract to purchase a new home
- Contract to purchase a substantially renovated home
- Contract to build
- Contract to purchase off-the-plan
- A building as an owner-builder
If you are buying off the plan it means the property is not completed yet, so if you have bought a new property that is ready to be moved into you can choose ‘contract to purchase a new home’.
Section 5: Optional Information
As the name suggests this is not a mandatory section, and only applies if you are Aboriginal or a descendant from the Torres Strait.
Section 6: Declaration by Applicant
This section is where you need to sign the application form, and it needs to be witnessed by someone who isn’t an application.
This section of the First Home Owners Grant QLD application form is for signatures.
Put another way, if you and your partner are applying for the grant your partner cannot witness your signature and vice versa. Lucky for you, because you are working with our Mortgage Brokers at Hunter Galloway we can witness your signature.
Section 7: Declaration by Spouse
When you are applying with a partner or a spouse, this is the section that they sign. Same as the above, their signature needs to be witnessed by someone that isn’t you.
What supporting documents do I need?
The specific documents required will depend on your individual situation, and we will have the majority of these documents from your home loan application so chat to us before getting home together.
You will need to provide a few additional documents to apply for the First Home Owners Grant like your identification.
To give you an idea, to apply for the first home owners grant QLD you will need:
- ☑️ Completed First Home Owners Grant Application form
- ☑️ Proof of Identification – Australian Passport, Drivers License or Birth Certificate
- ☑️ If you are buying a new home 🏡
- ➡️ A contract signed and dated by seller and applicants
- ➡️ Registration confirmation statement that shows the applicants as the registered owners (or title search)
- ➡️ Final inspection certificate.
- ➡️ The Office of State Revenue sometimes also require confirmation from the seller the property has not been previously occupied.
- ☑️ If you are building a new home 🏗
- ➡️ A contract signed and dated by builder and applicants
- ➡️ Registration confirmation statement that shows the applicants as the registered owners
- ➡️ Final inspection certificate.
- ➡️ The Office of State Revenue sometimes also require additional documents like the bank valuation, rates notice or stamped contract to buy vacant land.
The First Home Owners Grant application also asks for evidence on the valuation of the home, if you have been gifted a deposit they may require a statutory declaration if a related person is giving financial help or a certified copy of your marriage certificate.
As mentioned the exact documents required are different for every application, so chat with our team and we can help make this as simple as possible.
First Home Buyers Scheme – 95% No LMI government grant?
The First Home Loan Deposit Scheme is now available and allows home buyers with between a 5-19% deposit the chance to get a guarantee from the government, and avoid Lenders Mortgage Insurance saving you tens of thousands in extra fees!
There are some restrictions around income, property price and your citizenship status in this chapter we give you everything you need to know about the First Home Loan Deposit Scheme in 2020.
Did you say free money from the government?
While there are limited details available at the moment, it looks like the scheme will work like a guarantor home loan where you will still borrow 95% (as an example) from the bank and instead of paying Lenders Mortgage Insurance the government will provide a guarantee to your bank.
While the obvious positives to the scheme are helping first home buyers save tens of thousands in Lenders Mortgage Insurance costs, there are some potential downsides.
- ⛔️ The government scheme will be restricted to 10,000 first home buyers each year, which as an example only works out to be 10% of the total 110,000 first home buyers in Australia in 2018.
- ⛔️ The interest rates on these loans could be higher, while some of the banks initially said they may charge higher interest rates NAB and CBA have said they wouldn’t charge higher interest rates compared to other low deposit borrowers.
- ✅ The guarantee is set to last as long as you hold your property, or until you refinance your property.
- ✅ It can save you tens of thousands, as an example a $400,000 purchase with a 5% deposit would normally cost between $13,047 and up to $17,512 in LMI.
The other unknown is how this new first home buyers grant could create more demand and push prices up for first home buyers. According to research by the Deakin University:
In 2010 the First Home Owners Grant was increased by $7,000 to $14,000 for an existing home and increased to $21,000 for a new home. Since the introduction of First Home Owners Grant, property prices have directly increased by over $57,321 or 18.8% since its introduction.
So it’ll be interesting to see how it plays out, but worth keeping all of this in mind if you are trying to decide if its best to wait or buy your first home.
What are the terms and conditions of the First Home Loan Deposit Scheme?
You will need to meet some eligibility criteria to qualify for the First Home Loan Deposit Scheme including:
- Your income must be under $125,000 per year as a single person or $200,000 as a couple
- You cannot have owned property in Australia before (i.e. you are a first time home buyer)
- You need to be at least 18 years old
- You need to be an Australian citizen, so cannot be on a permanent resident visa for example
- You need to hold a minimum of 5% deposit
There are also restrictions on the purchase price of the property which we have detailed here.
Update: September 2019, Consultation Opens for FHB Loan Scheme
The government has started moving the First Home Loan Deposit Scheme to make sure it is available from 1st January 2020.
Today I was proud to introduce the First Home Loan Deposit Scheme.
From Jan 1 2020, the Scheme will help first home buyers enter the property market sooner, by providing a Government guarantee that will allow first home buyers to purchase a home with a deposit of 5%. pic.twitter.com/CuafJ65d4B
— Michael Sukkar (@MichaelSukkarMP) September 12, 2019
There still isn’t much new information on the scheme, but we will keep this page updates as things progress.
We’ll keep you updated as new information comes out around the first home owners scheme, and any updates to the first home owners grant in 2020.
Now It’s Your Turn
If you are looking to build a home in Queensland, or buy a new home using the first home owners grant our team at Hunter Galloway can help.
Our team here at Hunter Galloway helps first home buyers with navigating the home buying process.
To chat about your deposit, lending and first home ownership options book in a time to sit down with us, or feel free to call on 1300 088 065.
More Resources for first home buyers
- First Home Buyers Guide from start to finish
- How to Buy a House 🏘 (Step-By-Step Case Study)
- Using your Superannuation to build your deposit: The Complete Guide to the First Home Super Saver Scheme
- How to save for a house deposit (fast)
- Build a House in Brisbane 🏗 The Definitive Guide
Ready to take the next step toward buying? We’re happy to help. Schedule a call today with a Home Loan Expert from Hunter Galloway, the home of home buyers.
The information on this page is general in nature and should not be considered as advice. Before you act on this information you must seek independent legal and financial advice.