Can I use the first home owners grant as my deposit?

March 03, 2017
Vanessa Grieves

The first home owners grant is a great opportunity to help you purchase your first home sooner.

When it comes to a deposit for your home loan is the grant enough?

You may use your grant towards your deposit however lenders will require you to also have at least 5% of genuine savings.

Some of our lenders will accept rental history instead of the 5% genuine savings which means you can use your grant as your deposit. However, your deposit will still need to be at least 5% meaning if the grant doesn’t equate to that you will need to contribute some of your own money as well.

To be eligible for the first home owners grant you must meet the following criteria:

  • At least one applicant must be an Australian citizen or permanent resident.
  • You must be at least 18 years of age.
  • You must be buying or building a brand new home valued under $750,000.
  • You or your spouse must not have previously owned property in Australia.

There are some exceptions on owning property however, for example you may own a vacant block of land and still be eligible for the grant. For more information on the first home owners grant eligibility visit https://firsthomeowners.initiatives.qld.gov.au/ or give us a call on 07 3808 1070 and we can answer your questions.

If you are planning on using the first home owners grant to help you with your deposit come in and visit us to discuss your options and see if you are ready to purchase your first home! 

Posted in: Home loans

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