There are various schemes and grants available to first home buyers from the State and Federal governments.
First Home Loan Deposit Scheme
Buy your home with as little as 5% deposit and no Lenders Mortgage Insurance.
To be eligible you must:
- not have owned property in Australia before
- be an eligible first home buyer
- be an Australian citizen, aged 18 or over
- meet income and property price threshold requirements
- have a deposit of at least 5% in genuine savings.
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help you buy or build your first home sooner.
If you’re eligible you’ll get a limited guarantee from the Australian Government to buy or build your first home with a low deposit of 5%, without paying Lenders Mortgage Insurance (LMI).
There are 10,000 FHLDS places available from July 2021 for the 2021-22 financial year.
An additional 10,000 FHLDS places for new homes are available from 1 July 2021 to 30 June 2022 for eligible first home buyers building or buying new homes.
Family Home Guarantee
Buy your own home with the Family Home Guarantee (FHG) with a deposit as small as 2% deposit and no Lenders Mortgage Insurance
To be eligible you must:
- not currently own a home, but you may have owned property in Australia before
- be a single parent with at least one dependant living with you
- be an Australian citizen, aged 18 or over
- meet income ($125,000 per year) and property price threshold requirements
- have a deposit of at least 2% in genuine savings.
Move into a new family home
The Family Home Guarantee is an Australian Government scheme that helps single parents buy a family home.
From 1 July 2021, 10,000 Family Home Guarantees will be available to eligible single parents with dependants.
You can use the Family Home Guarantee to build a new home or buy an existing home with a deposit of as little as 2%. Both first home buyers and previous home owners can apply. You can’t use the Family Home Guarantee to buy an investment property.
First Home Super Saver Scheme
Use your super to help save for your deposit.
To be eligible you must:
- not have owned property in Australia before
- be an Australian citizen of at least 18 years age
- not previously had funds released from superannuation under this scheme
- meet all the eligibility criteria under this scheme.
About the scheme
The First Home Super Saver (FHSS) scheme enables you to use voluntary contributions from your superannuation to put towards your deposit, helping you to buy your first home sooner.
What super contributions are eligible?
Only voluntary contributions can be accessed as part of the FHSS scheme.
Certain types of contributions are not eligible to be withdrawn under the FHSS scheme, including:
- compulsory employer contributions (eg: Superannuation Guarantee)
- spouse or child contributions
- Government co-contribution
- Contributions made by another individual or entity on your behalf (except where your employer makes additional contributions for you under an agreed salary sacrifice arrangement), and
- voluntary contributions to defined benefit funds or constitutionally protected funds.
How much of my super can I contribute towards the amount to be withdrawn under the FHSS scheme?
All contributions to super will count towards the ordinary contribution caps that apply.
The maximum amounts you’re able to contribute (within the ordinary caps) and withdraw as part of the FHSS scheme are:
- $15,000 per financial year, and
- $30,000 in total.
How do I apply?
If you’ve made eligible voluntary contributions, you meet other eligibility rules and you wish to apply to access funds to purchase a home, you’ll need to follow some important steps.
First of all you’ll need to request a determination from the ATO directly, which will tell you how much you’re eligible to withdraw from super under the scheme. You can then make an application to the ATO to withdraw an amount.
It is also important to be aware that there are some important timing requirements that relate to when you need to submit your application for a determination and withdrawal from the ATO and when you’re able to sign a contract.
Also, once your funds are released, there are some additional obligations you’ll have, which include:
- entering into a contract to purchase or build your home within 12 months (may be extended by the ATO)
- notifying the ATO once you’ve entered into a contract, or
- if you don’t enter into a contract within the required timeframe, you’ll need to either recontribute the funds to superannuation, or pay additional ‘First Home Super Saver Tax’. You won’t be eligible to apply for a release in the future under the scheme.
For more information on the FHSS scheme, see ato.gov.au, opens in new window. You may also wish to confirm with your super fund that they will participate in the scheme.
First Home Owner Grant
Get access to a one-off grant for the purchase or build of a new home. The application process and eligibility criteria varies by state or territory.
To be eligible you must:
- not have owned property in Australia before
- be an Australian citizen or a permanent resident of at least 18 years age
- be an owner-occupier, not a residential investor
- meet all the eligibility criteria under this scheme.
A state and territory guide to the ever-changing First Home Owner Grant (FHOG) scheme. Find out how much you are entitled to.
The First Home Owner Grant (FHOG) has undergone changes over the years and varies a great deal from state to territory to state. This home buyer grant is now aimed squarely at new builds. The FHOG can be worth between $10,000 and $15,000 in most cases. Here’s a brief summary of what you might be entitled to – and links to each state and territory’s scheme so you can check out the small print.
What is the First Home Owner Grant (FHOG)?
The First Home Owner Grant (FHOG) was introduced by the Federal government in 2000. Since then, the rules around it have repeatedly changed.
While the FHOG is a national scheme, it’s funded by the states and territories—and administered by each of them individually. So each state or territory tweaks its own FHOG rules pretty much every year.
We’ll look at some general principles of FHOG, the intention behind it and then look at the eligibility rules. We’ll then briefly summarise how the FHOG works in each state and territory.
What’s happening with the FHOG?
Introduced to offset the effect of GST on house ownership, the FHOG has evolved into an economic stimulus tool. It generally changes to reflect housing affordability, and can change quickly and often.
Who gets the FHOG?
Again, each state and territory has its own rules, but the following conditions generally apply:
- it’s only available to first home buyers. You—and your spouse or partner—can’t have owned property before.
- you can only receive the grant once
- you must be an Australian citizen or permanent resident (may vary by state or territory)
- you must be a ‘natural’ person (in other words, a real human, not a company or a trust)
- you must live in the house for at least six months once it’s built
- most states and territories have a minimum age requirement (usually 18)
- maximum purchase price is between $575,000 and $750,000 (depending on state or territory)
- in almost every instance, the property must be either new or ‘substantially renovated’ (ie. much more than just a new kitchen).
Check to see if you’re eligible.
Do concessions apply?
You’ll need to check the rules for your state or territory, but you could be eligible for:
- discounts on stamp duty – some states and territories can waive or discount stamp duty up to some property price limits
- regional property concessions – you may be eligible for a larger grant if buying or building in regional areas, or even a larger discount on stamp duty
- the First Home Loan Deposit Scheme.
FHOG by state and territory
The Federal Government has a portal to the relevant FHOG page in each state and territory.
When will the grant be paid?
Once again, each state and territory has its own rules so you’ll need to check out the sites above. But generally the grant’s paid out under these conditions:
- established home: payment will be made on settlement
- contract to build: grant paid to the builder with the first progress payment
- owner builder: payment on receipt of the Certificate of Occupancy
- new home: payment at settlement
- purchase off the plan: payment at settlement
We know that the home loan process can be daunting. When the time comes, don’t feel like you have to do it on your own. Call us on 1300 1400 15 or 0409 02 99 22.
How do I apply for FHOG?
To apply for the FHOG, you can:
- lodge the application yourself through your state or territory authority
- lodge the application as part of your home loan application process.
Stamp Duty
Find out about stamp duty costs and how it fits into your home loan journey. The application process and eligibility criteria varies by state or territory.
To be eligible you must:
- buy or acquire property within Australia
- meet all the eligibility criteria for your state or territory.*
What is stamp duty?
Stamp duty (or transfer duty) is a state-by-state tax that applies when you buy or acquire a property. Duty applies to properties bought for both owner-occupier and investment purposes. It also applies to properties that you receive as gifts or as part of trusts.
How to pay stamp duty
It’s an upfront cost, which means you need to consider the price of stamp duty when calculating how much you have for your house deposit. Your stamp duty payment will usually be made on your settlement day.
Stamp duty concessions and exemptions
Each state has its own concessions and exemptions, but there are some common ones that you may want to be aware of.
First home buyers
If you haven’t bought a home before, potential reductions in stamp duty may apply to you. Eligibility requirements and what type of reduction you receive will differ depending on your state.
You may also be eligible for the First Home Owners Grant (FHOG) alongside any stamp duty savings.
Off-the-plan purchases
Buying a property off-the-plan means purchasing before the property has physically been built. This can apply to buying and building on vacant land or buying within a larger complex that has yet to be built. These sorts of purchases can come with concessions on stamp duty and will depend on the dutiable value of the property. Eligibility will be specific to each state.
More information
For more information on how stamp duty applies in your specific state, please refer to your state’s website:
Australian Capital Territory
https://www.revenue.act.gov.au/duties/conveyance-duty
New South Wales
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty
Northern Territory
https://treasury.nt.gov.au/dtf/territory-revenue-office/stamp-duty
Queensland
South Australia
https://www.revenuesa.sa.gov.au/stampduty
Tasmania
https://www.sro.tas.gov.au/property-transfer-duties
Victoria
https://www.sro.vic.gov.au/land-transfer-duty
Western Australia
https://www.wa.gov.au/organisation/department-of-finance/transfer-duty