The Northern Territory government made a splash when it announced its First Home Owner Grant (FHOG) was being replaced with a HomeGrown Territory grant of $50,000 for first homebuyers building or buying a new home.
The payment applies for those signing a contract between 1 October 2024 and 30 September 2025 with no cap on home values.
For those falling outside that timeframe or purchasing an existing home, the NT First Home Owner Grant (FHOG) is available, which could give you a $10,000 boost.
How does the NT HomeGrown Territory Grant work?
The temporary territory government scheme is available to eligible first home buyers building their own homes or making off-the-plan purchases. It may also apply for certain major renovation projects on residential properties in the NT.
To be eligible, you must:
- be a first-home buyer (not have owned a home before anywhere else in Australia)
- sign a contract to buy or build a home in the Territory between 1 October 2024 and 30 September 2025
- it must not replace other contracts signed before 1 October 2024
- the home must have never been previously lived in or sold as a place of residence
- be a person and not a company or trustee
- have at least one person over the age of 18
- ensure one applicant is an Australian citizen or permanent resident
- live in the home for at least 12 months after taking possession of the property (name is on the title) or once construction of the home is complete.
All owners of the home must meet the eligibility requirements.
Details regarding eligibility and accessing payments are available via the NT government's home owner assistance website.
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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First published on October 2022
Image by Henrique Felix via Unsplash
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