Purchase your first home in Northern Territory: How a First Home Owners Grant can help

By the resi financial blog team, 16 July 2014

First home buyer grants Norther Territory NT

First home buyers looking for some aid to purchase their own slice of Northern Territory real estate could be in luck, with recent changes to the state's First Home Owner Grant (FHOG) aiming to assist these goals in the future. Working towards buying your first home can be a difficult experience, but securing some assistance from the state government can help make the process far more streamlined in the long run. 

What is a FHOG?

The FHOG was introduced on a wide scale across Australia in July 2000, but was quickly adopted and altered for each individual state. The fund was introduced to help first-time buyers get their foot into the real estate market following the introduction of GST onto real estate transactions, aiding the transition from rental tenant through to homeowner. 

However, this was quickly changed by the Northern Territory government. From December 2012, the Northern Territory FHOG  was increased to $25,000 for those looking into purchasing a new home anywhere or an established home in a non-urban area, and raised to $12,000 for those looking to purchase an established home in an urban area. 

Recent changes to the FHOG

There were recently some new changes made to the FHOG. In May 2014, the established home costs remained the same. But the amount for a new home across the state rose to $26,000, while the value cap on these property values remained $600,000. 

These figures will only stay the same until January 2015. From this date, new homes will still be eligible for a $26,000 FHOG contribution. However, established properties of any sort will no longer be eligible for the grant, moving the first home buyer market towards purchasing new homes or undertaking construction projects from the beginning of next year. 

Who is eligible for the FHOG? 

Every person looking to own the home needs to apply for the grant. In order to be eligible, a person must be over the age of 18 and be an Australian citizen/have permanent citizenship in the country. Furthermore, you and your spouse must not have been paid a FHOG in any state or territory of Australia before, nor owned property anywhere across the nation. 

Finally, the grant will be given on the condition that the property is moved into within one year of purchase - or if constructing a home, within one year of building completion. On top of this, you have to live in the home for a continuous six months as your main place of residence. 

Speak to one of our resi mortgage specialists today on 136 126 to find out what mortgages are available to help you buy your first home in the Northern Territory.

Categories: Home Loans, Personal Finance