First Home Buyer

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Couple buying first home

If you are a First Home Buyer in Darwin and the Northern Territory we will smooth the way to home ownership, as we have an understanding of government grants and lender policy.

There are a number of ways to purchase a property using a Darwin home loan. If you live outside of Darwin we can help across the whole Northern Territory to achieve your property goals.

We will meet you at a time and place that suits you for a no obligation, no cost, meeting. At that meeting we can establish what subsidies you may be eligible for.

HomeBuilder scheme

What is HomeBuilder?

HomeBuilder is a tax-free grant program initiated by the Federal Government to stimulate the residential construction sector in response to the economic downturn caused by COVID-19. It will provide eligible applicants with a $25,000 grant to help build a new home or renovate an existing home. Here is the link to the  federal government web site: https://treasury.gov.au/coronavirus/homebuilder

Am I eligible for HomeBuilder?

To access HomeBuilder, you need to be an owner-occupier, building or renovating a home and meet the following criteria:

  • You are an Australian citizen aged 18 or over, you can’t access it through a company or trust
  • Your annual income needs to be less than $125,000 for individual applicants, or less than $200,000 for a couple based on your 2018-19 tax returns or later.

Both new and existing homes are eligible.

Does my home qualify for HomeBuilder?

There are a number of criteria homeowners have to meet to qualify for HomeBuilder.

  • If you are renovating, you need to be spending more than $150,000.
  • If you are building a new home, it needs to be worth less than the national price cap of $750,000.
  • If you are renovating an existing property it needs to be valued at less than the national price cap of $1.5 million.
  • The building works must improve the liveability, accessibility or safety of your home.

Therefore no grants will be given for property additions that are not connected to the main residence, such as pools, outdoor spas and saunas, tennis courts, sheds or garages. Owner-builders and those looking to build a new home as an investment property or renovate an existing investment property are not eligible.

What types of homes are eligible?

All dwelling types are eligible for the scheme, including houses, apartments, house and land packages and off-the-plan purchases, provided the owner-occupier is building a new home or significantly renovating an existing home. Applicants must also meet the income eligibility test.

Do you need to be a first-home buyer?

All eligible homeowner-occupiers will receive the grant, that includes first-home buyers and those that are not first-home buyers, provided you meet the income criteria, are spending more than $150,000, the cost of the new home is under $750,000 or the value of the existing home is not more than $1.5 million.

Homeowners need to meet the income requirements to be eligible. Picture: Roy Van Der Vegt

Can you buy off the plan with HomeBuilder?

You can buy off the plan provided you meet the income criteria, meet the spending requirement and the new or existing home falls under the national price cap.

Can you buy house and land packages?

Yes, provided you meet all the criteria.

Can investors get HomeBuilder?

No. Owner-builders and those looking to build a new home as an investment property or renovate an existing investment property are not eligible.

What builders can I use?

Builders must be registered or licensed in the territory.

What if I own land but haven’t signed a contract with a builder?

  • If you own a property (ie house and land) and knock the house down to rebuild, this will be considered a substantial renovation and subject to the renovation price range of $150,000 to $750,000 provided the value of the house and land isn’t greater than $1.5 million.
  • If you own the vacant land prior to June 4 and then build, the total value of the land and the new build can’t be greater than $750,000.
  • If you have bought land after June 4 and then build a home, the total value of the land and the build can’t be more than $750,000.

Is the HomeBuilder grant taxed?

No. This is in line with existing first-home owner grant programs.

When can I access HomeBuilder?

  • To be eligible for the $25,000 grant you must enter into a building contract between June 4, 2020 and December 31, 2020.
  • Construction must commence within three months of the contract date.

How can I access HomeBuilder?

You need to contact the relevant authority in the state or territory, on when and how to apply. You can apply in the state you live or plan to live in when it signs the National Partnership Agreement with the Federal Government. The relevant authority will pay you the grant, as long as you meet the eligibility criteria. The acceptance date of applications will be backdated to June 4.

What proof or documents do I need to provide when applying?

To apply you will need the following:

  • Proof of identity.
  • A copy of the contract dated and signed by the applicant and the nominated registered or licensed builder.
  • A copy of your builder’s registration or license, depending on state or territory requirements.
  • A copy of your 2018-19 tax return or later to illustrate your eligibility under the income cap.
  • Documents such as council development approvals, building contracts, occupation certificates and evidence of land value.

How will I know if my application is successful?

The relevant state or territory authority will notify you of the outcome of your application.

What is my application is unsuccessful? Can I appeal?

If you are not satisfied with the outcome of your application you can request the matter be referred to your state or territory dispute resolution body.

Is there a limit on how many people can get HomeBuilder.

No. It is a time-limited but uncapped grant.

NORTHERN TERRITORY

Territory first homeowner’s grant: $10,000

Commonwealth first Home Loan Deposit Scheme: Up to $10,000

With HomeBuilder, how much can I access? $45,000

First Home Loan Deposit Scheme

Here are the key details:

  • In the Northern Territory there is a price cap of $375,000.
  • Income: singles – your taxable income for the previous financial year must not be more than $125,000, couples – your combined taxable income for the previous income year must not be more than $200,000.
  • Must not have held an interest in property before, First Home Owners only.
  • Australian Citizens only.
  • 5% genuine savings as a deposit. $18,750.
  • No Lenders Mortgage Insurance.

There are limited loans this financial year, (at time of writing) of the 10,000 offered over 6,000 have been taken. In July 2020 a new set of 10,000 will be oferred.

Here is a link: https://www.nhfic.gov.au/what-we-do/fhlds/

First home owner grant for purchasing or constructing a new home

From 7 May 2019, if you are buying or building a new home, you can apply for a First Home Owner Grant (FHOG) of $10,000. You may also be eligible for the BulidBonus grant and the Territory Home Owner Discount. A new home is one that has never been previously lived in or sold as a place of residence.

Here is the link to the eligibility test: https://nt.gov.au/property/home-owner-assistance/first-home-owners/first-home-owner-grant

Territory home owner discount - stamp duty concession of up to $18,601

If you are buying an established home, a new home or land to build a new home in the Northern Territory (NT), you may be able to get up to $18,601 off stamp duty. The home must be your principal place of residence.

If you have not owned a property in the NT for the last 24 months this grant may be suitable.

Also Territory home owner A person who has not held an interest in residential property in the Northern Territory in the 24 months prior to the execution of the conveyance. However, the 24 month period does not apply if a person no longer holds or will no longer hold an interest in residential property as a result of a breakdown in a marriage or de facto relationship.

Home renovation grants - up to $10,000 for first home buyers

If you buy an established property as your first home, you may be able to get financial help to renovate or improve it. You can get up to $10,000 under the home renovation grant if you bought your first home after 1 September 2016. Applications for the home renovation grants close at 5pm on 30 November 2020.

Household goods grant - up to $2,000

If you buy a new property as your first home, you may be eligible to apply for up to $2,000 to buy household goods.

Armed with that knowledge we discuss your future goals and the big step of purchasing a home.

Next comes analysing your financial position, such items as work history, credit rating, family guarantee and anticipated changes in circumstances may be discussed.

Here is our Darwin First Home Buyers Guide. To contact a Darwin home loan from a Darwin mortgage broker call today on 0447 499 794. You can access our Mortgage Calculator here.

 

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Nick Kirlew Darwin Mortgage Broker

Arafura Finance Brokers is an Authorised Representative (No. 420372) of BLSSA Pty Ltd, ABN 69 117 651 760. Australian Credit License Number 391237.
Nicholas Kirlew is a credit representative (399996) of BLSSA Pty Ltd ACN 117 651 760 (Australian Credit Licence 391237)
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Contact Nick Kirlew on 0447 499 794.
Darwin, Refinance, Home Loans, First Home Buyer, Mortgage Brokers.
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