5 min read Are you a first-time homebuyer on the hunt for a new place to call your own?
The process can be overwhelming, and the costs can add up quickly. But did you know that there are government grants and schemes 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 put together a comprehensive guide to the major announced grants and schemes for first-home buyers as of 2023.
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 2023?
First-time homebuyers have a range of government grants and schemes available to them:
- 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
Read on to learn more about each of these grants, and how they can help you to buy your first home.Â
Help To Buy Scheme
The Help to Buy Scheme is a 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.
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.
35,000 spots will be available each fiscal year, starting July 1st, 2022.
To increase your chances of securing a spot, make sure to complete your tax returns as soon as possible.
To apply, you will need to provide your most recent Notice of Assessment from the Australian Taxation Office (ATO)
Family Home Guarantee
The Family Home Guarantee is a program designed to assist eligible single parents with dependents in purchasing a home for their family sooner.
Through this initiative, 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, with a total of 10,000 spots.
An additional 5,000 spots will be made available each year, starting on July 1st, 2022 and ending on June 30th, 2025
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 minimum of a 5% deposit.
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 will launch in January 2023.
First Home Super Saver Scheme
The First Home Super Saver Scheme allows you to save for a deposit for your first home inside your super account, taking advantage of the favourable tax treatment.
Recently, the government has increased the total amount of savings that borrowers can release from their super to make a deposit on a home 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: In order 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.
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, don’t hesitate to contact us today. Take the first step towards your new home!
Can I submit multiple applications for government grants and schemes?
Yes, as long as you meet the eligibility requirements.
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 or scheme 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
It’s important to note that 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 a number of grants and schemes for first-time home buyers including the $15,000 First Home Owners Grant (FHOG) for buying or building new houses, units, or townhouses with a value of less than $750,000, and 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 $650,000.
For vacant land, there is no stamp duty for land valued at less than $400,000, and a concessional rate for land valued between $400,000 and $450,000.
Please note that, since August 2020, the NSW government increased the threshold for stamp duty exemptions for first home buyers, for both newly built homes and vacant land.
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, having a total gross income (including partners, if any) that does not exceed the income threshold, not having owned any other property in the last two years and 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, visit the ACT Revenue Office’s website.
Northern Territory (NT)
The Northern Territory (NT) offers some of the most generous and attractive government schemes and grants for both first-time home buyers and property owners in general.
These housing programs include the $10,000 First Home Owners Grant for purchasing or building a new home in the Northern Territory, 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.
Additionally, there is a $10,000 Home Renovation Grant for renovations, and a $2,000 Household Goods Grant Scheme.
Other programs that may be available include the Home Buyer Initiative and the HomeBuild Access.
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 the purchase or construction of a new home, referred to as the First Home Owners Grant (FHOG).
However, it is important to note that there is no stamp duty exemption or concession for first-time home buyers in South Australia, unlike in some other states and territories.
To calculate the stamp duty payable on a property purchase in South Australia, you can use a stamp duty calculator provided by Revenue SA.
For further details, it is recommended to visit Revenue SA’s website.
Tasmania (TAS)
First-time home buyers in Tasmania may qualify for a number of incentives, such as a $20,000 grant for building or purchasing a new residence or a newly built residence.
Additionally, they may also be eligible for a 50% discount on stamp duty when purchasing an established home with a value of $400,000 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 a number of 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, as long as the sale is the first time the property is used as residential premise and the home is less than five years old.
Additionally, first-home buyers may also be eligible for 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, it is recommended to visit 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 rates of stamp duty 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.
FAQ's
Eligibility criteria for this scheme include, but not limited to, the buyers should be at least 18 years of age, the property being purchased should be located in a regional area, and buyers should not have previously owned property in Australia. The specifics and criteria are not yet announced.
The application process for this scheme has not yet been announced. More information will be made available once the program launches in January 2023.
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.
It is recommended to check with the National Housing Finance and Investment Corporation (NHFIC) 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.
The grants and schemes vary from state to state, it’s best to check the website of relevant state government revenue office 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, The First Home Super Saver Scheme.
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. 35,000 spots will be available each fiscal year, 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.
Eligibility criteria for this scheme include, but not limited to, the buyers should be at least 18 years of age, the property being purchased should be located in a regional area, and buyers should not have previously owned property in Australia. The specifics and criteria are not yet announced.
Government grants and schemes can impact the housing market. While their main purpose is to assist in purchasing a home, when grants 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, it is recommended to 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.
Our team here at Hunter Galloway helps first home buyers with navigating the home buying process.
To chat about your deposit, lending and first home ownership options book in a time to sit down with us, or feel free to call on 1300 088 065.
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