Browse Forums Building A New House 1 Mar 22, 2019 9:04 am Hi Everyone, In September 2017 i signed a contract for a home and land package, assuming i would take advantage of new government reforms for first home owners after July 2017 i.e $10000 grant, no stamp duty for homes up to $650000, no premium on LMI when borrowing more than 80%. However due to our land and construction being separate contract, I had to pay stamp duty for my land when it was registered in August 2018. Now I am in building stages of my home and was wondering if I am eligible to claim the FHOG now during building stages? or usually that is after building finishes? Furthermore does the abolished 9% insurance premium on Lender's mortgage insurance applies to me since I technically bought a home and land package but it turns out to be two separate contracts instead so a land contract and building contract? any help would be great thank you ! Re: First home owner grant 2Mar 22, 2019 11:48 am Hi D.LAM, It depends on the state you live in and the time you signed your contract. I can shed some light on the Victorian Grants and how they work having gone through it recently myself. First Home Owner Grant: If you are building through a builder usually the FHOG will be credited at one of the stages from your build from the bank to the builder. ie. it will come off your loan (Can make up some of your deposit). This might not always be the case so I assume if you haven't received the grant yet you will get it or be able to apply for it once you have your Certificate of Occupancy. See below for criteria:
You’re not eligible for the FHOG if you or your spouse/partner have already:
Stamp Duty Refund: As long as you are eligible to get the FHOG you should be eligible for the Stamp Duty Full Refund (depending on date of contract signing) The stamp duty refund/exemption applies if your land cost under $600,000 (from $600,000 to $750,000 it is a scale where you get a percentage back). You will get back all(and a percentage if $600,000 to $750,000) of your stamp duty for the land when you receive your Certificate of Occupancy for your house as long as you have the certificate within 1 year of your land settlement date (if you haven't made this don't stress as you can apply for an extension). I assume you will have to apply for the refund, it wont just be automatic. LMI: Not too knowledgeable here, but I do have experience with the two different loans and LMI. When we were hunting for a loan we went to a broker who's best deal was not as good as what going directly to the bank could manage. Because the broker had lumped both loans together the LMI was quite high, but the bank had seperated the loans and we were paying LMI on only one of the loans(less LMI compared to the broker). This turned out to be the better deal and we also got a good rate on the land due to a deal at the time. I assume if you already have your loans and have signed contracts you will be paying for whatever you signed up for, I doubt you would be able to change this now. Hope that clarifies things for you a little, If your not Victorian then its all probably useless haha! Re: First home owner grant 3Apr 02, 2019 12:32 pm Sir Salty Hi D.LAM, It depends on the state you live in and the time you signed your contract. I can shed some light on the Victorian Grants and how they work having gone through it recently myself. First Home Owner Grant: If you are building through a builder usually the FHOG will be credited at one of the stages from your build from the bank to the builder. ie. it will come off your loan (Can make up some of your deposit). This might not always be the case so I assume if you haven't received the grant yet you will get it or be able to apply for it once you have your Certificate of Occupancy. See below for criteria:
You’re not eligible for the FHOG if you or your spouse/partner have already:
Stamp Duty Refund: As long as you are eligible to get the FHOG you should be eligible for the Stamp Duty Full Refund (depending on date of contract signing) The stamp duty refund/exemption applies if your land cost under $600,000 (from $600,000 to $750,000 it is a scale where you get a percentage back). You will get back all(and a percentage if $600,000 to $750,000) of your stamp duty for the land when you receive your Certificate of Occupancy for your house as long as you have the certificate within 1 year of your land settlement date (if you haven't made this don't stress as you can apply for an extension). I assume you will have to apply for the refund, it wont just be automatic. LMI: Not too knowledgeable here, but I do have experience with the two different loans and LMI. When we were hunting for a loan we went to a broker who's best deal was not as good as what going directly to the bank could manage. Because the broker had lumped both loans together the LMI was quite high, but the bank had seperated the loans and we were paying LMI on only one of the loans(less LMI compared to the broker). This turned out to be the better deal and we also got a good rate on the land due to a deal at the time. I assume if you already have your loans and have signed contracts you will be paying for whatever you signed up for, I doubt you would be able to change this now. Hope that clarifies things for you a little, If your not Victorian then its all probably useless haha! Thanks alot for your detail information, really great help! So it looks like we finally have some movement on site! Definitely later than expected, but I'll take any progress at this point. I'll drop by over the weekend to get… 5 27289 Hi VK, I am now retired however I have stood beside over 300 owner builders in the past 18 years that have successfully built their own homes. First of all a building… 10 22606 |