How to Use First Home Owners Grant As Deposit

A first-time homeowners grant is a grant offered by a local, regional or national government to encourage people to purchase homes. The amounts of the grants offered can vary as they depend on the discretion of the offering government. The procedure for obtaining these grants also varies by government. Most governments will require purchase of the home by a specific deadline and submission of the signed contract as proof of eligibility to receive the grant.

Using a First-time Homeowner Grant As A Deposit

• 1

  Tell your chosen mortgage company that you would like to use the first-time homeowners grant as a deposit. Not all mortgage lenders will allow this practice so be sure to ask your lender before proceeding with a home purchase. Those that do allow this practice will have specific procedures for using the grant as a deposit.

• 2

  Take out a loan for the amount of the grant. Since the homeowners grant will be given to you after the purchase of your home, you can repay the loan as soon as you receive the grant.

• 3

  Consider purchasing a newly built home from a home builder with in-house financing. New home communities are often built and sold by a single builder. Speak with the builder about using the homeowners grant as a deposit. The builder may already have a procedure in place that will finance the entire cost of the house with no deposit and allows you to pay the amount of the grant towards the loan.