How Do I Qualify for a FHOG, and How Does a Co-Borrower Boost My Borrowing Capacity?
The Australian government and its agencies help first-time homebuyers become homeowners through grants and fee waivers. The First Time Home Owner Grant (FHOG) receives its funds from the Australian government, but it’s administered by the states. Qualifications vary a bit between the states, so the address of the property you’re interested in determines jurisdiction.
For all states, the applicant must be a first-time homebuyer and the property must be new. There’s a cap on the home value’s and the applicant must reside in the property for at least six consecutive months after the purchase. Australian citizenship is another requirement that goes across the board.
The program is still young; it got its start in 2014. Before you apply, it’s a good idea to double-check the requirements in case any modifications were made.
First-time homebuyers face several challenges, such as little credit history, employment history, and less than 20% of the home’s value for the down payment. You can estimate your borrowing capacity with our mortgage repayment calculator.
To boost your credibility among lenders, bring in a co-borrower. The best co-borrower in this scenario is a direct relative who owns their own home. Their property acts as collateral against the loan. The security against your home loan boosts your borrowing capacity. It’ll ensure that you procure your starter home. If you want to move up a step, you can, but it’s a good idea to be fiscally responsible.
For more information about procuring the FHOG and adding a co-borrower to your application, contact Mortgage House. Our lending specialists are ready to answer your questions and offer guidance.