The Queensland First Home Owner Grant (FHOG) of $30,000 has been extended, giving you the perfect chance to secure your dream home on the stunning Gold Coast. The Queensland Revenue Office confirms this game-changing grant is available for eligible contracts signed between 20 November 2023 and 30 June 2026.
Eligibility Criteria for the First Home Owner Grant (FHOG):
To qualify for the FHOG in Queensland, you must meet the following criteria:
- Be at least 18 years old.
- Be an Australian citizen or permanent resident.
- You or your spouse must not have previously owned property in Australia.
- The home must be new and not previously occupied or sold as a place of residence.
- The total value of the home, including land and any contract variations, must be less than $750,000.
Understanding Lenders Mortgage Insurance (LMI):
If your deposit is less than 20% of the property’s value, most lenders will require you to pay Lenders Mortgage Insurance (LMI). LMI protects the lender in case you default on your loan, but the cost is typically passed on to you as a one-off premium added to your loan amount.
What if You Don’t Qualify for the FHOG?
Many first home owners currently living on the Gold Coast are not going to be able to take advantage of the FHOG becasue there is a restriction on having to purchase a new property, not an existing one. With such few properties on the Gold Coast being new builds you might want to consider other pathways for home ownership:
- First Home Guarantee (FHBG) – The FHBG allows eligible first home buyers to purchase a home with as little as a 5% deposit without paying LMI. The government guarantees up to 15% of the property’s value to your lender. To be eligible, you must be an Australian citizen or a permanent resident, at least 18 years old, and earn up to $125,000 for individuals or $200,000 for joint applicants.
- Family Home Guarantee (FHG) – The FHG supports eligible single parents or legal guardians with at least one dependent to buy a home sooner. You can purchase a home with as little as a 2% deposit without paying LMI. There are 5,000 places available for the 2024–2025 financial year.
- Guarantor Home Loans – If you have a family member willing to act as a guarantor, you may be able to secure a home loan without a deposit and avoid LMI. The guarantor uses the equity in their property as security for your loan. This option can help you enter the property market sooner, but it’s essential to understand the risks involved for both you and your guarantor.
Start your Gold Coast property search early! Let’s discuss how we can turn your dream of owning a home into a reality. Got any questions? Book a 15-minute Discovery Call.