| The Australian federal government introduced | | | | of these expenses as the buyer sees fit. For |
| the First Home Owner Grant (FHOG) in 2000 to | | | | example, you may use it to offset stamp duty |
| compensate for the GST (goods and services | | | | or insurance, real estate agent fees or other |
| tax) and to make buying a home easier for all | | | | mortgage-related costs, such as points or |
| Australians. Since that time, this popular | | | | application fees.The Grant is administered by |
| grant has helped people in every state to buy | | | | each state or territorial government. Most |
| their first home. As a result of this grant, | | | | first-time buyers will qualify for the grant; |
| as well as other economic factors, | | | | specific requirements are available online on |
| homeownership in Australia is now at an | | | | the FHOG website ( Qualifications are very |
| all-time high.Depending on your lender, you | | | | similar, regardless of your state. You must |
| may be able to use the $7,000 grant as part | | | | be a citizen or permanent resident of |
| of your down payment. Not all lenders will | | | | Australia, and you must be a natural |
| allow it to be used in this way however, so | | | | person--in other words, not a corporation. |
| if that is your intent, take the time to shop | | | | Also, each applicant and applicant's spouse |
| around and compare lenders. The mortgage | | | | must not own, or have owned property in |
| market is highly competitive, and more | | | | Australia in the past, even if it is property |
| lenders are starting to allow the grant to be | | | | that is held with another individual. None of |
| used as down payment.There may be | | | | the applicants may have received the Grant |
| circumstances where you may prefer to stay | | | | previously. The Grant is meant for |
| with a certain lender, even if that lender | | | | owner-occupants. Applicants must be buying |
| does not allow the funds to be used as down | | | | the property for living in, and be prepared |
| payment; for example, if the lender offers | | | | to occupy it within a year of purchase.The |
| the most attractive interest rate, or lower | | | | Grant is not means-tested and is therefore |
| fees than other lenders. Buyers must balance | | | | available to all applicants regardless of |
| the cash they have available for down payment | | | | income category. The grant is not taxable. In |
| against these other factors that may make the | | | | addition to the Grant, you may also be |
| loan less costly overall. Even if you do not | | | | eligible for exemption from conveyance duty, |
| use it as a down payment though, there are | | | | depending on your state.Copyright 2006 Tracey |
| many other practical uses for the Grant. The | | | | AndersonTracey Anderson is a mortgage broker |
| process of purchasing a home entails many | | | | specialising in helping Australian homebuyers |
| expenses. The Grant may be used to offset any | | | | find the right mortgage. |