The QLD First Home Buyer’s Grant is ending soon……………..!
The current Queensland First Home Buyers’ Grant will end at midnight on 30 June 2018.
The grant reverts back to the original $15,000 from 12.01am on 1 July 2018. It was extended for a short time only to support first home buyers to get into their new home sooner.
If you are buying an existing home (one that is already built), you are not eligible for the QLD Government Great Start Grant of $20 000 (unfortunately). However, you may still be eligible for the QLD First Home Buyers Stamp Duty Rebate.
What do I need to do by midnight on 30th June 2018 to Qualify?
To qualify for the $20,000 grant, you need to have:
Purchased a block of land (if you are building a house), which must be done before you sign a building contract. Whilst this is not a compulsory requirement to get your $20,000, it’s a good idea because you need to ensure the home being built suits the block of land.
Signed a building contract by midnight on 30th June 2018.
As it stands at the moment if you sign a building contract on 1 July 2018 or later, you will be eligible for the $15,000 grant instead.
You must then 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.
The $20,000 QLD First Home Buyers Building Grant (also known as the Queensland Building Grant, or FHOG) is specifically for people who are building or buying a new home.
The QLD First Home Buyers Stamp Duty Rebate, which is a rebate of up to $8,750, is available for those buying an established home. You may also get the Stamp Duty Rebate of up to $7,175 if you are buying vacant land to build upon
What grants and rebates am I eligible for if I’m building my own home?
If you are building a new home you are eligible for both the Building Grant of $20,000 and the Stamp Duty Rebate on the vacant land you buy (up to a maximum of $7,175).
Therefore the maximum combined benefit that you can qualify for is $27,175.
What grants and rebates am I eligible for if I’m buying a brand new home that has never been lived in?
If you are buying a new home (one that has never been lived in), for example buying ‘off the plan’ you are eligible for just the Building Grant ($20,000).
When you’re buying a new home you may be eligible for both the Building Grant ($20 000) as well as the Stamp Duty Rebate on the purchase of that home, up to a maximum of $8 750.
So when you’re buying a new home the maximum benefit you can receive is $28,750.
Can I use the $20,000 First Home Buyers Great Start Building Grant as my deposit?
Yes, you certainly can! It is advisable to factor the deposit into your calculations. Typically, the grant either helps our clients to buy or build their new home sooner or it helps them have more of a buffer to do it.
The majority of people who are wanting to buy or build their first home take out a loan, as they don’t have the money saved to buy the land and pay for the building. When you’re building this is often called either a building or construction loan.
The $20,000 First Home Buyers Grant can be used as all or a part of your deposit when you’re applying for the construction loan.
There are additional things to consider, such as the timing for when you get access to the grant and when you need to pay your deposit to the builder to get started. A mortgage broker who’s an expert at this will help explain how the steps will work in your situation with this.
When do I get paid the $20,000 Building Grant?
The $20,000 grant is paid at different times depending on how and when you applied and what type of property you’re buying or building.
If you’re building a home, it can be paid in 3 different ways.
The first (and most popular) time it’s paid is at the first stage of building – the ‘slab stage’ which is when the builder pours the slab.
This is actually the second payment that’s made to the builder as they’re firstly paid a deposit payment (normally 5%) prior to this that helps them get started.
At the end of this stage, the Office of State Revenue will pass your $20,000 to the bank, who then pays the builder on your behalf - the $20,000 never directly goes into your bank account.
The second time that it can be paid is generally used when you buy off the plan. In this stage the $20 000 is paid at the settlement of your home.
In both of the first 2 payments the processing of the $20 000 payment is handled by the lender who provides your home loan and this is generally the quickest and most convenient way to have it paid.
The third way is the least common way, and is where you mail off your documents directly to the QLD Office of State Revenue (OSR). They will require a copy of a final inspection certificate from a council or private building certifier before making the payment, and then normally take two or more weeks to process payment - when processed by a bank it generally only takes 3 to 4 business days.