There are a lot of grants and incentives being provided to the first home buyers in Australia. In this blog, we are going to discuss everything that you need to know about buying your first home in Australia.
Eligibility, average cost, and grants available for first home:
The age of the first home buyer in Australia is 29 years. And the average cost for the first home is about $300,000- $400,000. The First Home Owner Grant (FHOG) is a very essential scheme. If one is successful in getting this scheme, you can get your new home with a deposit as a low as 5%. Almost everyone who plans to buy a new home needs to apply for a loan. In the later section of the blog, we are going to talk about how you can get a loan for your first home?
Getting a loan for your first home:
- Try to choose your option carefully:
- You should talk to your friends and experts to know more about getting better loans. At first, you need to analyze your financial situation and then try finding a loan that suits your requirements. Taking a loan is not a one-time process. You have to repay the loan amount over a fixed period of time. That is why you have to consider all the factors carefully before opting for any loan. Start saving money so that you can pay at least 20% of the total amount of the home.
- Gather information about different types of properties:
- There are different types of properties available to you. Based on your requirements, you will opt for a house or an apartment. Before you apply for a loan, make sure you know all the pros and cons of the property type available before you.
- Find a proper loan for your home:
- Now that you are aware of the type of home you want to buy. Contact some broker or property dealer before making your final decision. Check for some schemes and other grants that would give you a more precise idea about how much money you need.
- Get pre-approved finance for your home:
- This is a very important thing in the process of buying a new home. Pre-approved finance for your home will tell you exactly how much money you can borrow. And this amount depends a lot on your financial situation. You can talk to real estate agents and other property dealers for more information in this regard.
- Apply for your full loan approval:
- After you have got a clear idea about how expenses, you have to apply for the full loan approval. There are several auctions involved and you have to be the best bidder. Now, a sales agent may help you a lot in getting this deal done over time. Make sure that your deal meets all your obligations.
- Now, the lender will verify all your applications and other eligibility for this loan.
- Now comes the settlement:
- This is the final stage of completing your deal. The settlement is a process of transferring the property from one hand to the other via a legal process. Now the seller will give you the keys to your home or apartment. But you have to apply for the grants or incentives before initializing your settlement deals.
- At first, you will get the contract documents from your lender then you have to reply to him with your building insurance papers and then at last your settlement will be booked.
The HomeBuilder Grant:
Now that you are aware of the process to get a new home with the help of a loan. It is time that you know about the grants that are available in different stated of Australia. The HomeBuilder grant is available for either building a home or buying a new home.
Eligibility:
To become eligible for this scheme, you should meet the following criteria:
- You should be an Australian citizen and 18 years old or more.
- You should be an individual, not a trust or any other organization.
Documents required:
The table given below contains the details of the documents that you have to submit.
| Dwelling category | Criteria for eligibility | Required documentation |
| All | · Should be an Australian citizen
· An individual · 18 years old or more than that · Licensed builder or registered before 4 June 2020 |
· Copy of your current passport, Australian Birth certificate, and citizenship certificate of Australia.
· Photo identification form of yours (like driving license) · If your name on any document differs from some other, you need to present proof that you have changed the name. · Copy of the license of the builder. The registration should have been done before 4 June 2020. |
| All | Eligibility for the income caps:
· Not more than $125,000 for an individual · Below $200,000 for a couple
|
· Evidence from the income tax department that shows your income |
| New Build | · The value of your property should not be more than $750,000. | · Copy of a certificate that shows the property is registered in the name of the applicant.
· Copy of home building contract but the contract should have signed between 4 June 2020 – 31 December 2020. · Copy of a document showing the value of your land. (it could be a copy of front and execution pages of the contract for the sale of land or a copy of your latest rate notice). · Proof showing your construction commencement along with the evidence showing that the foundations have been laid and you have paid the required amount of money to the contractor. · Proof showing that the property for which you have applied is your principal place of residence. |
| Renovation | · The contract value of the building should lie between $150,000 – $750,000.
· The property value should be less than $1.5 million. |
· Copy of the certificate showing you are the owner of the property.
· Copy of the contract of building showing the renovations and this contract should have been signed between 4 June 2020 to 31 December 2020. · Copy of a document showing the construction commencement (invoice issued for the renovation works) · Copy of latest rate notice to show the value of that property |
| Off-the-plan | · The value of the property should be less than $750,000 | · Proof showing the commencement of construction
· Evidence to prove that this place will be your principal residence · Copy of the front and execution pages of the sales contract. The contract should have signed between 4 June 2020 – 31 June 2020. · Copy of a certificate showing that you are the owner of the property. |
Conclusion:
This blog has told you all about how to get a loan and all the processes involved in buying your first home experiences.