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