Hi everyone. My girlfriend is considering a property in Victoria with vendor financing. Basically the seller has said that she would be eligible for the first home buyers grant but i had a look at the application forms and they say that to get the grant you have to provide your name on the property title. But it's my understanding that with VF that title does not transfer to the buyer until the finance is completely paid out.
So basically my question is would she still be eligible? What processes would she have to go through to get the grant (if it's even possible) and what proof etc aside from the contract would have to be given? Cheers
Steven
Yes in Vic & Nsw you would be eligible to receive the FHOG on the Possession date.
Richard Taylor | Australia's leading private lender
Hi Steven
Exactly as Richard says for Instalments Sales Contracts that are often called Vendor Financing. Just be aware that if your girlfriend were to buy the property via a Rent To Own, i.e. a Lease with an Option, she would not qualify for the FHOG until such time as she exercises the Option and buys the property.
Rent To Owns also come under the generic banner of Vendor Financing but, as the seller has mentioned that she'll be eligible for the FHOG, I'm guessing they will be using an Instalment Sales Contract.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks very much Richard and Paul.
We have done a bit more research and discovered that for FHOG purposes it's referred to as a 'terms contract' and she definately will be eligible.
One last question though, she has to provide 'proof of possession' in order to receive the grant, can anyone tell me what actually constitutes proof because i have had a few different answers!
I am sure each State is different but in Qld a copy of the stamped transfer and full copy of the executed instalment contract would be sufficient.
In addition a copy of the loan statement and a stat declaration answering a couple of questions is required by the OSR.
Richard Taylor | Australia's leading private lender
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