First home buyers in Australia

Government incentives for first home buyers in Australia.

Updated July 2022
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There are a myriad of grants, concessions, schemes and discounts available.

It is often difficult to understand what is available to you and what the limitations of these incentives are. This list is designed to help you to get an overview of what is available, but it is not a comprehensive list. There are even more state based schemes and programs aimed at specific industries and careers. It is always worth checking in with your mortgage broker as they will know which programs that you qualify for. They may also identify lender incentives not listed here as there are too many to count.

Asset 1

First home-owner grant

Most states in Australia offer a grant for first home owners (between $10,000 and $35,000) who are building or buying a brand new home.

Asset 2

First home super saver scheme

Introduced in 2017 the FHSS is a scheme helping first home buyers to save up a deposit. This allows you to salary sacrifice into super and withdraw these additional contributions when needed.

Asset 4

Stamp duty (land tax) waiver

Some states make it easier for first home buyers by reducing or even removing stamp duty costs. The amounts vary but this can reduce purchase costs by up to $15,000.

Asset 4

First Home Guarantee scheme

(formerly the first home loan deposit scheme) This government scheme is the most popular first home buyer scheme in history. The first home guarantee scheme allows first home buyer to borrow at 95% LVR and pay $0 Lenders mortgage insurance (LMI).

Asset 1

Family home guarantee

Targeting single parents who are looking to enter or re-enter the property market; This scheme allows applicants to purchase at 98% LVR without paying LMI.

Would you like to learn how you can save money and buy your first home with ease?

First home-owner grant

The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a new residential property for use as their principal place of residence. This grant has been adopted by all states in Australia to promote the building of new properties.

The grant amount varies in each state from $10,000 to $30,000. The restrictions and requirements are also personalised to each state and to regional and urban areas as well.

You must be a first home owner in Australia to qualify for the grant and the property must meet the specific state requirements.

Most states require that you must start living in your new home within 12 months of completion of the transaction. It is also a requirement that you live in the home as your Principal place of residence for a continuous period of at least six months from your move in date.

The grant amounts and the qualification requirements have changed significantly in the last 10 years as the grant has been running so it is essential to double check your eligibility with the relevant government agency prior to signing a contract to build or buy.

The NSW government will provide $10,000 towards the purchase price of building or buying a new home.

A new home is one that has never been previously lived in or sold as a place of residence.

The property must be worth no more that $750,000 in total and this grant can be in additional to the First Home Buyers Assistance Scheme.

Find out the details and requirements here.

First home super saver scheme

The first home super saver scheme (FHSS) introduced in 2017 is designed to allow you to save money for a deposit in your Superannuation. This should allow you to save faster as you are paying concessional tax instead of income tax. When you find a property to buy you can apply for a release of your contributions.

From 1 July 2022, the amount of eligible contributions that can count towards your maximum releasable amount across all years will increase from $30,000 to $50,000. The amount of eligible contributions that can count towards your FHSS maximum releasable amount for each financial year will remain at $15,000.

Find out the details and requirements here.

  • Superannuation guarantee contributions made by your employer, and spouse contributions cannot be released under the FHSS scheme.
  • Voluntary additional contributions are the only funds available for release as part of this scheme.
  • You must apply for and receive a FHSS determination from us before signing a contract for your first home or applying for release of your FHSS amounts.
  • FHSS maximum releasable amount across all years is $50,000. The amount of eligible contributions that can count towards this total for each financial year will remain at $15,000.

Stamp duty (land tax) waiver

Stamp duty, sometimes referred to as Transfer fees, is a tax we pay when buying a house.

All states in Australia charge a percentage of the price of the property you’re buying. Each state sets their own fees and calculations but, on average, people tend to pay tens of thousands of dollars in stamp duty.

That’s on top of the mortgage, deposit and other expenses that come when buying a property. Stamp duty can be a substantial additional cost of buying a property so it is important to consider this prior to signing a contract.

Some states make it easier for first home buyers by reducing the stamp duty or transfer fees up to a certain amount.

The stamp duty cost is based on whether you are buying an existing dwelling or you are building a new home; It also changes depending on the value of the property. These variations can also effect the concessions discounts that are available to first home buyers.

 

The NSW First home buyers assistance scheme (FHBAS) allows a concession or exemption from paying transfer duty for first home buyers.

This applies for all first home buyers when buying an existing home, new home or even vacant land.

There are cutoff thresholds for this concession to target the lower end of the market. Use the SHBAS calculator to find out how much you wwill be required to pay.

Find out the details and requirements here.

First home Guarantee scheme

Introduced in January 2020, previously known as the First Home Loan Deposit Scheme, the First Home Guarantee scheme is designed to assist eligible first home buyers to enter the property market by reducing the deposit barrier.

From 1 July 2022 - 30 June 2025 there will be 35,000 places per annum for eligible home buyers.

The first home guarantee allows first home buyer to purchase their first home with a deposit as low as 5%, without having to pay Lender's Mortgage Insurance (LMI).

There is eligibility criteria for both the borrowers and the property being purchased that must be met, additionally lenders are allocated a limited number of spaces in the scheme.

Ensure that you qualify for a wait list prior to signing a contract on a new property. You can check the detailed eligibility here.

  • Income test. Singles must have a taxable income less than $125,000 and couples less than $200,000 for the previous financial year. The relevant Notice of assessment (NOA) is a required document and the income listed on this document is used.
  • Joint applications. Couples are only allowed to apply if they are married or in a defacto relationship. Siblings, friends, parent/child relationships are not eligible for the scheme.
  • Prior Ownership. You must provide proof you have never owned or held interest in property in Australia previously.
  • Australian Citizens. All applicants must be Australian Citizens with either a valid Australian passport or proof of Australian citizenship. Permanent residents are not eligible.
  • Owner Occupied. You need to move into the property purchased within six months of the settlement date. You also must continue to live in that property for as long as your home loan has a guarantee under the Scheme.

Family home guarantee

This government scheme aims to support single parents to enter or to re-enter the property market where they may not have the savings to do so traditionally.

They are not required to be a first home buyer and can enter the market sooner with only a 2% deposit and avoiding having to pay lenders mortgage insurance.

There are multiple conditions to be met but primarily the applicant must have a taxable income under $125,000 and be legally responsible for one or more children.

Ensure that you qualify for a wait list prior to signing a contract on a new property. You can check the detailed eligibility here.

  • Income test. Singles must have a taxable income less than $125,000 for the previous financial year. The relevant Notice of assessment (NOA) is a required document and the income listed on this document is used.
  • Single parent. A person is considered single if they don't have a spouse and/or the person does not have a de facto partner. The Person must also have at least one dependant child.
  • Australian Citizens. All applicants must be Australian Citizens aged 18 years or over. Permanent residents are not eligible.
  • Owner Occupied. You need to move into the property purchased within six months of the settlement date. You also must continue to live in that property for as long as your home loan has a guarantee under the Scheme.
  • Property Ownership. Applicants must not currently have a freehold interest in property in Australia.

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