Getting your foot on the property ladder can be difficult and overwhelming, but there’s help out there. If you’re buying your first home in the Northern Territory, the NT First Home Owner Grant (FHOG) is available, which could give you a $10,000 boost.
How does the NT First Home Owner Grant work?
The NT FHOG is a one-off $10,000 payment to first home buyers buying or building a new house, apartment, duplex, or townhouse. Unlike some of the other states' FHOGs, income and house value does not affect your eligibility for the grant - any first home buyer can apply!
A substantially renovated property can also be considered a new home as long as:
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The new home has not been previously occupied or sold since the renovation
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The renovation is substantial i.e. replace foundations/structures, supporting walls, etc.
A renovated kitchen or bathroom or any other cosmetic renovations do not count as substantially renovated.
NT First Home Owner Grant eligibility
To be eligible for the grant, you must:
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Be at least 18 years of age and be a natural person (not a company or trust).
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At least one applicant is an Australian citizen or permanent resident.
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You must be applying for the FHOG for the first time (this includes anywhere in Australia). However, you may be entitled to reapply for the grant if you paid back the FHOG received.
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Ensure each person holding a relevant interest in the home is an applicant.
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You must not have owned or occupied residential property in Australia before 1 July 2000.
You will also need to live in the home as your principal place of residence for at least six months within 12 months of an eligible transaction.
How do you apply for the NT First Home Owner Grant?
There are two ways to lodge your application.
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Through an approved agent: An approved agent is generally the lender that is providing your finance. Most financial institutions are approved agents.
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Through the Territory Revenue Office (TRO): Fill in the application form (with all the required supporting documents) and mail or email it to the TRO.
When will the grant be paid?
Depending on who you applied with, the NT First Home Owner Grant will be paid under the following circumstances:
| Situation | When will the grant be paid? |
| If you're buying a new home | If you applied with an approved agent, the grant will be received at settlement. If you applied through the TRO, the grant will be received once your name is registered on the property title. |
| If you're buying a home under a terms contract | When you're in possession of your home and installments of at least $10,000 have been made (excluding deposit). |
| If you're building a new home | Once foundations are laid and a progress payment of at least $10,000 has been made (excluding deposit). |
| If you're an owner-builder | When construction of the home is completed. |
What other schemes and grants are available in NT?
The Family Home Guarantee
The Family Home Guarantee allows 5,000 single parents (every financial year) to secure a home loan with as little as a 2% deposit without having to pay LMI. It was introduced in the 2021/22 Federal Budget.
Participants must be a first home buyer, with a maximum income of $125,000. The loan must be repaid through principal and interest repayments and can’t be longer than 30 years.
Regional First Home Guarantee
The Regional First Home Buyer Guarantee Scheme is designed to target first home buyers in regional Australia.
With the Regional First Home Guarantee, 10,000 guarantees each year will help first-home buyers purchase a regional home with as little as 5% loan deposit without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of up to 15%.
The First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSS) helps first home buyers save up a deposit by utilising the tax discounts that superannuation can offer. Essentially, it allows first home savers to salary sacrifice up to $15,000 per year towards the scheme at a discounted tax rate of only 15% (instead of their marginal tax rate).
When ready to buy a house, up to $50,000 can be released from the scheme (plus any earnings).
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Image by Henrique Felix via Unsplash
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