Every Grant And Incentive You Might Be Eligible For To Buy Your First Home

Looking to buy a house in Australia? Well, congratulations on giving up avocado toast, having rich parents, and probably also selling a few organs on the black market to afford a house in this economy!

But whether you’ve got a deposit together and are ready to make an offer, or you just want to know just how far off you are from buying a home in the future, it’s worth knowing what kinds of incentives are on offer in Australia, and what you need to do to qualify for them. Let’s dive in.

National Incentives

First Home Owner Grant

If you think of first home buyer incentives, this is probably the first one that comes to mind. This nationwide grant is designed to offset the effect of GST for homeowners. However, the eligibility criteria varies state to state, so we’ll explain more on this later. Transfer duty (FKA stamp duty) concessions are also available nationwide but vary depending on location.

First Home Loan Deposit Scheme

Arguably the hardest part of buying a home is scraping together a 20 percent deposit, and with the market skyrocketing by up to $800 per day, it’s only getting harder. And that’s where the First Home Loan Deposit Scheme comes in.

Usually there is only 10,000 places per financial year, but due to COVID, an additional 4,651 guarantees have been added from 31 January, 2022. Under the scheme, first home owners will be guaranteed on a loan with as little as a 5 percent deposit without having to pay the dreaded lender’s mortgage insurance (LMI).

See eligibility criteria for the First Home Loan Deposit Scheme here.

First Home Super Saver Scheme

Usually, you shouldn’t ever withdraw from your super (and usually can’t) unless your life depends on it. But the one real exception to this rule is the First Home Super Saver Scheme.

Under the scheme, you can make additional voluntary contributions to your super to the value of $15,000 per year to put towards your first home. This can either be done as a salary sacrifice, or an after-tax contribution that you later claim as a deduction (however, the latter is a bit more of stuff around to organise). The main benefit of this is paying less tax on that money (as your super contributions are taxed at a lower rate).

However, there’s a cap on how much you can withdraw from your super through the scheme. Currently, this is $30,000 (plus earnings), but the government recently announced this will be boosted to $50,000 (plus earnings) from July 1, 2022.

More information on the First Home Super Saver Scheme can be found here.

Family Home Guarantee

This isn’t technically a first home owner incentive — you can actually claim this even if it’s not your first home. If you’re a single parent, you can borrow on as little as a 2 percent deposit without paying LMI — provided you meet the criteria outlined here.

Victoria

First Home Owner Grant

If you’re buying or building a new home valued at under $750,000, you may be eligible for a $10,000 First Home Owner Grant.

However, the property must not have been previously sold as a place of residency or occupied as a home or short-term accomodation.

More eligibility criteria can be found here.

First Home Buyer Duty Exemption

If your home is valued at $600,000, you may be eligible for a total exemption from paying stamp duty. Or, if your home is valued at over $600,001 but less than $750,000, you may receive a concession.

Your home doesn’t need to be brand new, and it’s important to note that this references the value of the home, not the contract price. You also must live in the home as your primary residence for at least 12 months — starting within the first 12 months of ownership to get the exemption.

Considering stamp duty will cost you upwards of $30,000 depending on the property value, this is a huge saving.

More information can be found here.

Homebuyer Fund

The Victorian Homebuyer Fund is a shared equity scheme, which basically means the government will foot the bill for 25 percent of the cost, in exchange for a proportional ownership share of the property. This is an option if you earn less than $125,000 per year as an individual, or $200,000 as a couple and have saved at least a 5 percent deposit.

This means if the value of your home increases (as homes generally tend to do), the state will gain returns on its investment. Unlike other incentives, this is a loan that must be paid back either using your savings, refinancing, or when you eventually sell your home.

More information can be found here.

New South Wales

First Home Owner Grant

The NSW FHOG works in essentially the same way as the Victorian grant, offering $10,000 for new or substantially renovated homes under $600,000. Alternatively, if you plan to build your home, the hous and land value cannot exceed $750,000. You must — obviously — be a first homeowner, and you must live in the home as your primary residence for at least six continuous months within the first 12 months of ownership.

More information can be found here.

First Home Buyer Assistance Scheme

Unlike the FHOG, the assistance scheme is available for new or existing homes and will waive the transfer duty payable on properties valued at less than $650,000 ($350,000 for land alone). Provided you’re a first home buyer and your partner has not received a concession or exemption under the same scheme, you should be eligible for this.

If your home costs between $650,000 and $800,000, you will pay a concessional rate based on your home value. In order to be eligible, you must occupy the property as your primary residence for at least six months within the first 12 months.

More information can be found here.

Queensland

First Home Owner Grant

If you’re lucky enough to live in Queensland, you can receive $15,000 towards buying or building a new home valued at less than $750,000. The property must be brand new. You must not have received the grant previously and must live in the home for at least six continuous months within the first year.

More information can be found here.

Transfer Duty Concessions And Exemptions

First home buyers may also be eligible for transfer duty concessions or exemptions. If your property is valued at less than $500,000, you will pay no transfer duty, provided you meet the following criteria.

 Queensland Housing Finance Loan

If you live in Queensland but are struggling to get approved for a traditional loan, this could be an option for you. It covers both new and existing homes. Basically, you can get a loan on as little as a 2 percent deposit with no mortgage or account keeping fees.

The eligibility criteria is a bit more intense for this one, so you can read more about it here.

Tasmania

​​First Home Owner Grant

When it comes to the FHOG, life is good for Tasmanians, who may be eligible for up to $30,000 for new properties. You must be over 18, and must occupy the home for 6 months within the first year of ownership.

More information can be found here.

Transfer Duty Concession

First Home Buyers in Tasmania may be eligible for a 50 percent transfer duty discount on properties valued at less than $500,000. There is no total exemption on transfer duty in Tasmania.

More information can be found here.

South Australia

First-Home Owner Grant

South Australians can cop a $15,000 grant for new properties worth less than $575,000. In order to be eligible for the grant, you must live in the home for at least six months.

More information can be found here.

Western Australia

First Home Owner Grant

West Australians may be eligible for a grant of $10,000 on new homes. Depending on where exactly in the state you live, the maximum property value varies between $750,000 and $1 million. You must live in the property for at least six continuous months within the first 12 months of owning the home.

More information can be found here.

First Home Owner Rate of Duty

If you were eligible for the FHOG, you are also able to apply for this. Like most other states, the First Home Owner Rate of Duty offers concessions on transfer duty. However, West Australians do not receive a total exemption, so you will still pay some form of transfer duty. This calculator helps you work out exactly how much.

More information can be found here.

Keystart

Keystart is Western Australia’s low deposit scheme. If you fall under a certain income cap, and wouldn’t be considered by other lenders, Keystart may offer you a loan on as little as a 2 percent deposit without lenders mortgage insurance.

More information can be found here.

Northern Territory

First Home Owner Grant

First Home Owners in the Northern Territory may be eligible for a $10,000 grant. And unlike other states, income and property value are irrelevant, so you could — in theory — buy a mega mansion and still save yourself $10k.

More information can be found here.

ACT

Home Buyer Concession Scheme

Sadly for the ACT, there is only one incentive to buy a house (other than the obvious incentive of living really close to Questacon). If you haven’t owned a home in the last two years, you may be eligible for reduced transfer duty concessions.

More information and income thresholds can be found here.