Are you tired of renting and want to buy a home in 2024? Buying a house for the first time can be overwhelming, and the costs can add up pretty fast. But there are government grants to buy first home available to help make the dream of homeownership a reality.
The problem is many first-time homebuyers are unaware of these programs.
That’s why we’ve compiled a comprehensive guide to the major announced grants and schemes for first-home buyers as of 2024.
From national to state-level options, we’ll walk you through the eligibility requirements, application process, and available options to help you navigate the world of first-time homebuyer grants and unlock the door to homeownership.
Table of Contents
What Grants Are Available In 2024?
As a first-time homebuyer, you can take advantage of the following government grants and schemes:
- The Help to Buy Scheme
- The First Home Guarantee (formerly the First Home Loan Deposit Scheme)
- The Family Home Guarantee
- The Regional First Home Buyer Support Scheme
- The First Home Super Saver Scheme
- Stamp Duty concessions and discounts.
Read on to learn more about these grants and how they can help you buy your first home.Â
1. Help To Buy Scheme
The Help to Buy Scheme is a new government program aimed at helping first-time homebuyers achieve their dream of homeownership.
It works by providing financial assistance in the form of equity, with the government contributing up to 40% of the purchase price for a new home and up to 30% for an existing one.
This scheme is particularly helpful for those facing the affordability crisis in the housing market. With 10,000 spots available for eligible participants each year, it’s an opportunity worth looking into.
However, It is important to note that the government has not yet announced the official start date for this scheme.
What Are The Eligibility Criteria For The Help To Buy Scheme?
To be eligible for this grant to buy first home, you must meet the following criteria:
- You need to be an Australian citizen. Sorry, permanent residents, you do not qualify for this scheme unless you are applying with an Australian Citizen.Â
- You must be 18 years or older.
- You must meet the income thresholds ($90,000 for a single person and $120,000 for couples).
- The 2% deposit should be in the form of genuine savings – meaning money you have held in your account for 3 months or more. You can use money that has been gifted to you or from the sale of a car as long as you have held it in your bank for 3 months or more.
- You must live in the property for at least 12 months after buying it with the Help To Buy Scheme.
- The scheme is open to those who have owned a home before but do not own any property at the time of applying.
- The property you want to buy must meet the price caps. We cover those in detail below.
Read more: Help To Buy Scheme: A Comprehensive Guide For First Home Buyers.
2. First Home Guarantee
First-home buyers who qualify can take advantage of this program to purchase a new or pre-existing home with only a 5% down payment, eliminating the need to pay significant amounts for Lenders Mortgage Insurance. This is because the government acts as your guarantor for the remaining 15%. First-home buyers who use this scheme can save up to $25,000 or more.
Since July 1st 2022, the spots available nationwide are 35,000 each fiscal year. To apply, you will need to provide your most recent Notice of Assessment from the Australian Taxation Office (ATO). So, to increase your chances of securing a spot, make sure to complete your tax returns as soon as possible.
How Do I Apply For The First Home Guarantee?
You apply for the scheme through a participating lender or mortgage broker. Here is the information you must submit:Â
- Your full name and date of birth;
- Your Medicare number (including your position on the card);
- Your Notice of Assessment (NOA) for your taxable income. For reservations made from 1 July 2023 to 30 June 2024, the relevant NOA is for the 2022-2023 financial year.
- Other standard home loan documents.
3. Family Home Guarantee
If you are a single parent, the scheme is for you. Of all the government grants to buy first home, the Family Home Guarantee is the only program designed to assist eligible single parents with dependents in purchasing a home for their family sooner. Through this initiative, you can buy a home with only a 2% deposit without incurring the cost of Lenders Mortgage Insurance.
However, the scheme is only available until June 30th 2025. There are 15,000 spots available.
To apply, speak to your mortgage broker to assist you in meeting the eligibility criteria.Â
4. Regional First Home Buyer Support Scheme
The Regional First Home Buyer Support Scheme aims to assist up to 10,000 individuals annually who are residing in regional areas in purchasing their first home by providing a guarantee.
First-time home buyers will be able to buy a home with a deposit as low as 5% of the property value, and the government will provide a guarantee for the remaining 15%, eliminating the need for borrowers to pay for Lenders Mortgage Insurance.
The program launched in 2023 and has the following eligibility criteria:
- You must be an Australian citizen or permanent resident
- At least 18 years of age
- Earning no more than $125,000 for individuals and $200,000 for joint applicants
- Intending to live on the property as owner-occupiers
- Not have owned a house in Australia in the past 10 years
While this may not be one of the grants to buy first home that gives you actual cash in your hand, the guarantee from the government will save you thousands of dollars, whilst allowing you to get into the property market faster.
5. First Home Super Saver Scheme
The First Home Super Saver Scheme allows you to use your super account to save for a deposit for your first home, taking advantage of the favourable tax treatment.
Recently, the government has increased the total amount of savings that borrowers can release from their super from $30,000 to $50,000.
This means you can save more and make a bigger down payment on your first home.
Here’s a tip to keep in mind: To access the savings in your super account, you will need a determination letter from the Australian Taxation Office (ATO) specifying the amount that can be released for use as a deposit for a home loan. So, be sure to get that letter from the ATO as soon as possible to start saving for your first home.
Once you have released your savings, you have up to 12 months to sign a contract to buy or build a home. If you don’t meet the 12-month deadline, you can do any one of the following 3 things:
- Request an extension of up to 12 months.
- Recontribute the total amount back into your super. This needs to be non-concessional and at least equal to your assessable FHSS released amount, less any tax withheld.
- Keep the released amount and be subject to FHSS tax of up to 20% of the released amount.
Read more: First Home Super Saver Scheme – Step-by-step guide.
6. Stamp Duty Concessions
Stamp duty is a tax you must pay to the government when someone transfers ownership of a property to you, and it is one of the most expensive costs of buying a house. However, as a first-home buyer, you may be eligible to pay no stamp duty or get a discount, depending on the value of the property you are buying.Â
Stamp duty concessions also vary from state to state, so talk to an expert mortgage broker to help you take advantage of these savings.
Read more: First Homebuyer Stamp Duty.
How Can I Find Out Which Schemes Are Available To Me?
At Hunter Galloway, we specialize in helping first-time home buyers like you take advantage of government schemes to purchase your dream home.
Our experienced mortgage brokers can assess your eligibility for various programs and guide you through the application process.
Don’t wait any longer to make your dream a reality. Give us a call today at 1300 088 086, or fill out our short assessment form to find out what options are available to you. Our team at Hunter Galloway is ready to help you achieve homeownership.
Can I Submit Multiple Applications For Government Grants and Schemes?
Yes, you can submit many applications to grants to buy first home, as long as you meet the eligibility requirements for all the schemes you are applying for. For instance, a first-time home buyer who qualifies can potentially apply for and receive both the First Home Owners Grant (FHOG) and the First Home Guarantee while also being exempt from paying stamp duty.
However, it is important to note that each government grant to buy first home has its own set of qualifications and deadlines, so it can be difficult to qualify for all of them. To best determine your options, it’s recommended to consult with one of our expert mortgage brokers.
Government Grants And Schemes For Each State
In Australia, each state has its own set of policies and programs for first-time home buyers, including:
- First Home Owners Grant (FHOG)
- Stamp duty exemptions or reductions
- Additional state-specific grants and programs.
It’s worth mentioning that the FHOG is only accessible to first-time home buyers who are either buying or constructing a new home. If you’re buying an established home, you will most likely not be eligible.
Queensland (QLD)
Queensland provides several grants to buy first home, including the First Home Owners Grant (FHOG) for buying or building new houses, units, or townhouses with a value of less than $750,000. The grant amount is as follows:
- $30,000 for contracts signed between 30 November 2023 and 30 June 2025
- $15,000 for contracts signed before 30 November 2023
The Queensland government also provides a $5,000 Regional Home Building Boost Grant for brand-new houses, units, or townhouses with a value of less than $750,000 in certain regions of the state.
Additionally, there is the First Home Concession, which allows first-home buyers to pay no stamp duty on both new and existing property purchases under $550,000, with a possible discount still available for properties valued over $550,000.
There is also a First Home Vacant Land Concession available for transfer duty when acquiring vacant land to build a first home if certain requirements are met. It is applicable only for vacant land valued under $400,000.
For more information on these grants and schemes and their specific terms, please visit the QLD.gov.au website.
New South Wales (NSW)
First home buyers in New South Wales may be eligible for a number of incentives, including a $10,000 First Home Owners Grant for new homes that have never been lived in before.
Additionally, they may also be eligible for a full transfer (stamp) duty concession for both new and established properties valued up to $800,000, as well as a partial concession for homes valued between $800,000 and $1 million.
There is no stamp duty for vacant land valued at no more than $350,000 and a concessional rate for land valued over $350,000 and less than $450,000.
In addition, if you are in any of the following professions, you can take advantage of the shared equity home buyer helper, where the NSW government will pay up to 40% of an eligible property and retain its equity:
- Nurse
- Midwives
- Paramedics
- Teachers
- Early childhood educators
- Police officers
For more detailed information, please visit the NSW Revenue Office’s website.
Australian Capital Territory (ACT)
The Australian Capital Territory has replaced the First Home Owners Grant with the Home Buyers Concession Scheme.
Under this scheme, eligible home buyers in the ACT will not have to pay stamp duty on their home purchase.
To qualify for the scheme, buyers must meet certain criteria such as:
- Being 18 years or older,Â
- Having a total gross income (including partners, if any) that does not exceed the income threshold,Â
- Not having owned any other property in the last two years.Â
- At least one buyer must reside in the home continuously for at least one year, starting within 12 months of the settlement or completion of construction.
It is worth noting that under this scheme, buyers can now purchase both new and established properties as well as vacant residential land anywhere in the ACT at any price.
However, there are income threshold restrictions that vary based on the number of dependents.
For more information on grants to buy first home available in ACT, visit the ACT Revenue Office’s website.
Northern Territory (NT)
The Northern Territory (NT) offers some of the most generous and attractive government grants to buy first home. These housing programs include:
- The $10,000 First Home Owners Grant for purchasing or building a new home in the Northern Territory,Â
- A First Home Owner Discount of up to $23,928.60 on stamp duty for established homes with a value of up to $650,000.
- HomeBuild Access to help low and middle-income earners build or buy a newly-built house.
- Additionally, there is a $2,000 Household Goods Grant Scheme.
The Northern Territory used to offer the renovation grant, but that is no longer available. In addition, the NT government is no longer offering stamp duty concessions for first home buyers as of 30 June 2021.
For more information and details, please visit the NT.gov.au website.
South Australia (SA)
In South Australia, first-time home buyers may be eligible for a one-time grant of $15,000 for purchasing or constructing a new home, referred to as the First Home Owners Grant (FHOG).
If you entered into a contract on or after 15 June 2023, you may be eligible for a full stamp duty waiver if the value of your house is $650,000 or less.
For further details on grants to buy first home available in South Australia, we recommend visiting Revenue SA’s website.
Tasmania (TAS)
First-time home buyers in Tasmania may qualify for a number of incentives, such as a $30,000 grant for building or purchasing a new or newly built residence.
Additionally, they may also be eligible for a 50% discount on stamp duty when purchasing an established home valued at $600,000 or less.
For more details and information on how to apply, it’s recommended to check the State Revenue Office of Tasmania’s website.
Victoria (VIC)
First-time home buyers in Victoria may be eligible for several incentives, such as a $10,000 First Home Owners Grant (FHOG) for purchasing a new or established property with a value of $750,000 or less. You are eligible for this grant if the sale is the first time the property is used as a residential premise and the home is less than five years old.
First-home buyers may also be eligible for a stamp (transfer) duty exemption when purchasing a new or established property in Victoria up to $600,000 and a concession (discount) on duty for properties valued between $600,000 and $750,000.
For more detailed information, we recommend visiting the State Revenue Office of Victoria’s website.
Western Australia (WA)
First-time home buyers in Western Australia (WA) may qualify for a $10,000 First Home Owners Grant (FHOG) to purchase or construct a newly built residential property that they intend to use as their primary residence.
Additionally, they may also be eligible for a waiver on stamp duty when buying any home valued up to $430,000. For homes valued between $430,001 and $530,000, first-time home buyers may be eligible for discounted or concessional stamp duty rates as long as the home is to be used as a primary residence.
For more detailed information and terms, it is recommended to visit the WA.gov.au website.
Grants To Buy First Home - Frequently Asked Questions
Eligibility criteria for this scheme include but are not limited to the buyers being at least 18 years of age, the property being purchased is located in a regional area, and buyers not having previously owned property in Australia. How can I apply for the Regional First Home Buyer Support Scheme?
To apply for this scheme, you must do it through a participating lender or a mortgage broker. The National Housing Finance and Investment Corporation (NHIFC) does not accept applications directly.
The First Home Super Saver Scheme allows first-time homebuyers to make voluntary contributions to their superannuation fund, which can then be withdrawn for a home deposit.
In order to find out which grants to buy first home, It is recommended to check with the NHFIC (Now called Housing Australia) or with the relevant state government revenue office for information on government grants and schemes available in your area.
It is best to check with the relevant state government revenue office for specific information about submitting multiple applications for grants and schemes. As we mentioned before, the deadlines for schemes can be different, making it difficult to align them.
The grants to buy first home and schemes vary from state to state, so it’s best to check the websites of relevant state government revenue offices for information on the grants and schemes available in your area.
The Help to Buy Scheme, The First Home Guarantee (formerly the First Home Loan Deposit Scheme), The Family Home Guarantee, The Regional First Home Buyer Support Scheme and The First Home Super Saver Scheme are the some of the grants to buy first home available in 2024 .
The Help to Buy Scheme provides financial assistance to first-time homebuyers in the form of equity, with the government contributing up to 40% of the purchase price for a new home and up to 30% for an existing one. The official start date for this scheme has not yet been announced.
The First Home Guarantee is a program that allows first-time homebuyers to purchase a new or pre-existing home with only a 5% down payment, eliminating the need to pay for Lenders Mortgage Insurance. Each fiscal year, 35,000 spots will be available starting July 1st, 2022.
The Family Home Guarantee is a program designed to assist eligible single parents with dependents in purchasing a home for their family sooner. Single parents can buy a home with only a 2% deposit without incurring the cost of Lenders Mortgage Insurance. This scheme will be available during the fiscal years between 2022 and 2025.
The regional First Home Buyer Support Scheme is a government scheme to help regional home buyers build or buy a home with as little as a 5% deposit.
Government grants to buy first home can impact the housing market. While their main purpose is to assist in purchasing a home, when grants and schemes are introduced, there can be an increase in demand for certain types of properties, which can lead to an increase in prices. However, obtaining a grant or qualifying for a scheme can significantly benefit the home buyer, especially if they are able to take advantage of it before the market shifts. Additionally, rising prices can also increase the equity of your home.
Before applying, it is important to confirm that you meet the eligibility requirements for the specific grant or scheme you are interested in. The application process may vary depending on the program, but in general, we recommend you apply for grants and schemes at the same time you apply for a home loan. It may be beneficial to have a conversation with your bank or mortgage broker beforehand. Some lenders may handle the application process for the grant on your behalf once you have received formal home loan approval and have signed any necessary forms. Additionally, for stamp duty waivers, the paperwork will be handled by your solicitor on settlement day. It is always best to check with your mortgage broker or lender for specific details and eligibility requirements.
A mortgage broker can provide a range of services to help make the home buying process smoother and more manageable. These services may include:
- Assisting with the application process for government grants and schemes for which you may be eligible
- Simplifying the end-to-end home buying process
- Helping you secure a competitive interest rate on your home loan
- Providing access to suburb and property reports
- Offering a free upfront valuation of a property
- Guiding you through the settlement process and beyond
- To benefit from these services and more, it is suggested to contact a specialist mortgage broker by phone or by filling out a short assessment form.
Get Expert Assistance With Applying For First Home Buyer Grants.
If you’re ready to buy your first home, our team at Hunter Galloway can help.
Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
To chat about your deposit, lending and first home ownership options, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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