How can I qualify for the FHOG & benefit from a co borrower to improve my borrowing capacity?
A First Home Owner Grant (FHOG) is available to first time home buyers and homeowners searching the Australian housing market for a home. It is not easy to qualify and be approved for this grant, however, it is worth a shot! Houses are expensive, and home deposits are no joke.
The basic information that you should consider while applying for the FHOG is that you must be at least 18 years of age and prove that you’re an Australian citizen or permanent resident. If you are applying for someone else, make sure that they have either status.
If you are married, your spouse cannot have a home either! Keep in mind, though, that each state and city in Australia makes up their own qualifications and eligibility requirements. Although this is true, the average value of a home should be less than $750,000, which can be hard to find. The home needs to also not be an investing home. The resident and buyer should live in the home for a minimum of six months.
First time homebuyers that need help should look into co-borrowing. In these cases, usually a parent or older adult with savings, property/equity, and a high credit score co-signs, which increases and improves the overall borrowing capacity.
FHOG and Co Borrowers Conclusion
Overall, First Home Owner Grants are not easy to come by, but worth applying for! When you do, keep in mind the eligibility requirements as well as the fees required. For homebuyers that do not have high credit or a large borrowing capacity, this can be improved with a co-borrower.