First home owners grant (FHOG) was introduced by the Australian Federal Government with the primary aim to make purchasing a home simpler. This scheme has immensely helped people to buy their first home. It is one of the major reasons for the increase in first time homes in Australia since its commencement in the year 2000 and was subsequently increased in October 2008. The grant depends on the lenders. It is advised to compare with different lenders. Due to the heavy competition, lenders now accept grants as down payment too. On the contrary, there are other lenders who offer lesser interest rates but do not allow grants. The grants may be used to pay stamp duty, insurance or even realtor fee.

In general, first time buyers are eligible for first home owners grant. The basic criteria for FHOG is,

• The buyer should be a citizen of Australia and must be an individual and not a corporation.
• The spouse should not own any property in Australia individually or jointly.
• It should be the first time the applicant receives a grant.
• This facility is available to owner occupant homes only, at least for a period of one year.
• The individual should not occupy a residential property for more than six months time after July 2000.
• The individual should be above 18 years of age while buying the property.
• The individual should occupy the house within one year of receiving the grant.

The Government of Australia has announced this grant for all applicants not considering their income bracket. No tax is levied on the grant and it is free from conveyance duty. The First home owners grant was launched on July 1, 2000. The scheme is very popular and is an on going plan; the end date is not yet mentioned. There are no restrictions on the property price. There are approved banks that cater to these grants. According to the FHOG a first time buyer will be paid seven thousand dollars as boost. A first time purchaser will receive an extra fourteen thousand dollars as grant making the total grant a value of twenty one thousand dollars.

A residential building qualifies for a first home owners grant. The place should be used only for residential purpose. It can be a house, unit, apartment, flat, moveable home or a townhouse. Any approved agent can be contacted for grant application forms and other information. Related documentations also need to be submitted to the approved agent. Documentation includes identification proof; only one proof is valid for one category. The necessary proofs required are birth certificate, current passport, citizen certificate and for other citizens permanent residence certification. In case of dispute regarding processing of application form a complaint can be lodged with the commissioner. The complaint should be filed within sixty days of denial of your application. Details of the objection of first home owners grant also should be given in full detail to the commissioner to proceed with the case.