First Home Owners Grant

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From: Mike .


First Home Buyer's $7000 Grant
From: Nats
Date: 3/26/00
Time: 12:57:11 AM

I understand that part of the eligibility criteria is that prior to purchase the buyer needs to have a specific savings record: e.g. saving a specified amount each months for six months. Is this correct? If so, can the six month period commence prior to July 1st or must it begin on July 1st making the purchase viable in January, 2001?

 

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Les

Reply: 1
From: Mike .


Re: First Home Buyer's $7000 Grant
From: Les
Date: 3/26/00
Time: 12:24:12 PM

G'day Nats,

For first home buyers, it is common (though often no well-known) that your lender will require evidence of a "savings record" - usually a 6 month period as a minimum.

For a few pointers in this regard, see the web page http://www.imb.com.au/borrow.html - the following quote is an extract from their website.

"In the current economic climate, demonstrated genuine savings are a must for first home buyers in almost all circumstances".

By the time you are a "second home buyer", the need for a savings record is well behind you, as you have typically been paying off a mortgage for quite some time.

Re any Govt. requirement of such a savings history, I have found no evidence of such a requirement. So long as it is your first home, and if buying jointly it is also your partner's first home, the money's yours. The http://www.taxreform.gov.au website spells this out, but it is not easy to find - I had more success using Altavista search than I did "surfing" the ATO's site - but it's there!!!

If you can't find it, get back to me - I'm sure I can find it again.

Regards, Les