First Home Buyer Government Grants & Schemes

Though the housing market seems more inaccessible than ever, there are also more government incentives available to first home buyers than ever before. These incentives can help you save tens of thousands of dollars!

As a first home buyer residing in Australia, you may be eligible for the following five Government grants or incentives:

Waiver of Transfer Duty:

This is a state based scheme which in many instances allows for an exemption, concession or reduction of stamp duty (also known as transfer duty). There are various eligibility requirements including property type, property purchase price and applicant requirements.

First Home Owners Grant:

The First Home Owner Grant (FHOG) is a government subsidised lump sum payment to support eligible first home buyers in Australia with buying their first property. The amount you’ll receive will vary across different states and territories since these grants are funded at state level. The only major differences among states when it comes to the First Home Owners Grant are the limits imposed on property type and valuation. For most states, the FHOG is only available to those purchasing or constructing a brand new home, though in some states a substantially renovated home may qualify for the grant.

First Home Super Saver:

The First Home Super Saver (FHSS) scheme allows first home buyers to utilise their super fund to save up quicker through voluntary super contributions. These contributions are subject to the same concessional tax rates as standard superannuation and are capped at $15,000 per financial year.

First Home Guarantee Scheme:

The FHG is a selective initiative administered and managed by the National Housing Finance and Investment Corporation (NHFIC) that aims to assist eligible first home buyers in settling into their first home sooner.

Under the FHBG, the NHFIC looks to guarantee a portion of an eligible first home buyer’s home loan so that they can purchase the property sooner with the less required deposit. The NHFIC can guarantee up to 15% of the property value (as assessed by your lender). This guarantee is not a cash payment and is subject to lender participation.

This is particularly useful for younger first home buyers struggling to save up a sizeable deposit, as it enables an eligible home buyer to purchase a property using as little as 5% deposit without incurring costly Lender’s Mortgage Insurance (LMI) premiums.

Family Home Guarantee Scheme:

The Family Home Guarantee (FHG) is another national Home Guarantee Scheme provided by the Australian Government. This is funded by the NHFIC to support eligible home buyers to purchase a home sooner and with a smaller deposit.

More specifically, the FHG aims to assist single parents with at least one dependent child with purchasing a family home, regardless of first home buyer status. Like the First Home Guarantee, the NHFIC will insure up to 18% of the property’s value under the FHG (subject to lender participation). This means that an eligible single parent can purchase a home while putting down as little as 2% deposit and without having to pay LMI.

Regional Home Guarantee Scheme:

The Regional Home Guarantee Scheme is another national Home Guarantee Scheme provided by the Australian Government. This is funded by the NHFIC and offers eligible homebuyers in rural and regional areas the chance to build or purchase a newly established home with a deposit as low as 5%. Just like the others, the RHG scheme also mitigates the need for LMI, possibly saving new homeowners thousands in the process.

Help to Buy Scheme:

The Help to Buy (HTB) Scheme was a major part of the Labor Government’s 2022 election campaign and seeks to ease the burden on first home buyers by providing government assistance of up to 40% of the property value.

Although this means that the government owns a share of any property purchased through the HTB Scheme, it allows prospective first homeowners to purchase the equity back once they are financially comfortable.

It will be made available from later this year for up to 10,000 Australians each financial year.

The Help to Buy Scheme can be utilised by any eligible first time buyers, whether they are purchasing new or established property. There are many eligibility requirements to review to determine your suitability. The Government will provide an equity contribution of up to 40% for purchasing a new house and up to 30% for an existing house. This means that buyers can put up as little as 2% deposit for the purchase of their first home and all without having to pay the dreaded LMI premiums.

*This information is general in nature and does not take into consideration your individual circumstances. Please contact us for further information.

Kellie

Kellie loves helping her clients and is fiercely passionate about sharing her knowledge to educate others so they can achieve their financial dreams. She has a Business degree in Financial Planning and a Diploma in Finance and Mortgage Broking Management.

First Home Buyer Government Grants & Schemes

Kellie

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