What Is The First Home Owners Grant?
The First Home Owners Grant (FHOG) is a one-off grant paid to first home buyers buying new or building a new home.
A new home is a home that has not previously been occupied or sold as a place of residence and includes kit homes.
In Tasmania, the FHOG grant is funded and administered by the State Revenue Office (SRO) – Tasmania.
How Much Is The First Home Owners Grant In Tasmania?
The First Home Owners Grant amount in Tasmania is $30,000 for eligible applicants who purchase or build a new home between 1 April 2021 and 30 June 2023.
It was $20,000 for eligible applicants who purchase or build a new home between 1 July 2020 and 30 June 2022.
Do I Qualify For The FHOG In Tasmania?
Our First Home Owners Grant (FHOG) calculator is designed to work out which government benefits such as grants and stamp duty exemptions that you may be eligible for.
Are You Ready To Apply For The FHOG?
We’ve helped thousands of first home buyers apply for the FHOG and buy their first home.
Whether you’re buying new or building, talk to one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our online assessment form to find out if you qualify for a home loan.
What Is The Eligibility Criteria For The FHOG In Tasmania?
Applicant requirements
To be eligible for the FHOG in Tasmania, you must:
- be a natural person (not a company);
- be 18 years old or over;
- be an Australian citizen or permanent resident (if more than one applicant only one applicant is required to be an Australian citizen or permanent resident);
- occupy the home as your principal place of residence for a continuous period of at least six months commencing within 12 months of completion of an eligible transaction.
Also, you or your spouse must not:
- owned a residential property in Australia before 1 July 2000;
- have owned and occupied a residential property for more than six months in Australia after 1 July 2000; or
- have received the First Home Owners grant before.
Building requirements
You must have:
- entered into a contract to build your new home (comprehensive building contract);
- commenced laying the foundations for your home as an owner-builder; or
- entered into a contract to buy an “off the plan” or new dwelling (being a dwelling that has not previously been occupied or sold as a place of residence).
Also, the building must be completed within 24 months of:
- entering into the contract to build (comprehensive building contract); or
- laying the foundations for an owner-builder.
The building is considered complete at the issue date of the occupancy certificate.
In the case of movable buildings (a building that is fixed to land, not a caravan or mobile home) being purchased, the applicant is classified as an owner-builder.
- the commencement date is taken to be the date of the contract to purchase the new moveable building, and
- the building must be new (that is, a building that has not previously been used as a place of residence).
Eligible transaction requirements
- Contract with builder: You can apply for the FHOG once you’ve signed the contract. You must complete the construction within 24 months of the date of the signed contract. As evidence of completion, you must provide a certificate of occupancy from your local council.
- Owner-builder: You can apply for the FHOG once the laying of foundations begins. You must complete the construction within 24 months of the date of the signed contract. As evidence of completion, you must provide a certificate of occupancy from your local council.
- Off-the-plan: You can apply for the FHOG once you’ve entered into a contract to buy land and have the new home constructed on it. The construction must be completed within 24 months of the date of the signed contract.
- New builds: You can apply for the FHOG once you’ve signed a contract. The construction must be completed within 24 months of the date of the signed contract.
- Movable building: You can apply for the FHOG once you’ve entered into a contract to buy land and have the new home constructed on it. The construction must be completed within 24 months of the date of the signed contract.
When Is The First Home Buyers Grant Paid In Tasmania?
| When is the FHOG grant paid in Tasmania? | Through an approved agent (finance provider) |
|---|---|
| Purchasing a new home or an off-the-plan home | The grant is paid on the date of settlement. |
| Contract to build | The grant is paid following the completion of laying of the foundations/first progress payment. |
| Owner builder | The grant is paid on receipt of the certificate of occupancy |
Direct applications lodged with the State Revenue Office is paid after completion of the eligible transaction.
Source: FHOG SRO Tasmania
How To Apply For The First Home Buyers Grant In TAS?
In almost all cases, the bank or lender that you’re getting the home loan from will lodge the First Home Owners Grant (FHOG) application on your behalf. Lenders act as an approved agent on behalf of the state government and will process the payment of your grant with your loan funds.
Simply make sure that your bank/lender is lodging the FHOG application on your behalf.
If you require the grant for settlement or first drawdown/progress payment, you must lodge your application with an approved agent.
How To Apply For The FHOG Grant Myself?
You can only lodge your FHOG application directly with the State Revenue Office (SRO) Victoria only if an approved agent is not lodging it on your behalf.
We recommend that you apply through a solicitor/conveyancer in such cases. When doing so, you or your solicitor must send them the original application form, which needs to be downloaded, printed and completed in blue or black ink, together with copies of your supporting documents. Applications cannot be lodged with the SRO until after the completion of the eligible transaction.
Please refer to our full guide on lodging your First Home Owners Grant (FHOG) for more information.
Can You Use The FHOG Grant As A Deposit?
Yes, you can use the First Home Owners Grant (FHOG) as a deposit. However, it isn’t normally enough on its own.
Generally, you’ll need 5% to 10% of the purchase price, including the FHOG.
That is to say, to buy a $600,000 property, you’ll need at least $30,000 to $60,000 as a deposit.
Many lenders also require you to have at least 5% in genuine savings.
Also, if you’re building a home then your grant isn’t available until construction commences.
Interestingly, you don’t need any savings whatsoever, if you have a guarantor.
What Happens After The Grant Amount Is Paid?
Once you’ve received the grant, you must reside in the property as your principal place of residence for 6 continuous months in the first 12 months.
If your circumstances change after you’ve applied for or received the grant, you must notify the State Revenue Office Tasmania.
FHOG key Dates And Amounts Over Time In Tasmania (TAS)
| Dates | Amount available |
|---|---|
| 1 January 2013 and 6 November 2013 | $15 000 |
| 7 November 2013 and 31 December 2014 | $30 000 |
| 1 January 2015 until 31 December 2016 | $20 000 |
| 1 January 2016 until 30 June 2016 | $10 000 |
| 1 July 2016 to 30 June 2020 | $20 000 |
| 1 July 2020 until 30 June 2022 | $20 000 |
| 1 July 2021 until 30 June 2023 | $30 000 |
Are You Ready To Apply For A Home Loan?
We’ve helped thousands of first home buyers apply for the FHOG, get approved for a home loan and buy their first home.
Whether you’re buying new or building, talk to one of our specialist mortgage brokers by giving us a call on 1300 889 743 or by filling in our online assessment form to get started on purchasing your first home.