First home owner grants (FHOGs) and similar schemes remain a strong incentive to buy a home.
Australia first welcomed the national one-off grant system in July 2000 and now, each state and territory funds different opportunities for first home buyers.
The federal election in May also saw the introduction of several new national government schemes.
Let's explore what first home owner grants and schemes are available to you in your region.
What FHOGs are available in which areas?
Help to Buy Scheme
Introduced by the new federal Labor government after the 2022 election, this shared equity scheme allows eligible people to purchase a home with just a 2% deposit and without paying lender's mortgage insurance (LMI).
The federal government contributes up to 40% of the property's total cost and will therefore own part of your home - much as a lender would - and the buyer repays them.
Each state and territory has different property and income price caps for this scheme.
It is only available to 10,000 people nationwide every financial year and is expected to begin in January 2023.
New Home Guarantee Scheme
Includes First Home Guarantee (previously known as First Home Loan Deposit Scheme), Family Home Guarantee and Regional Home Guarantee
First Home Guarantee
Similar to the Help to Buy Scheme, this guarantee allows buyers to purchase a home with only a 5% deposit and no LMI is needed as the federal government essentially acts as a loan guarantor.
The price cap on taxable income is also slightly higher with places increasing by 10,000 in the 2022-2023 financial year to 35,000 nationwide.
Family Home Guarantee
Available to single parents with children or other dependants who have previously - but not currently - owned a property, eligible people can purchase a home with a 2% deposit with no LMI needed as the federal government acts as guarantor for 18% of the loan.
This scheme is available until June 30, 2025, with places increasing by 5,000 in the 2022-2023 financial year to 15,000 nationwide.
Regional Home Guarantee
Again, the federal government guarantees 15% of the loan for buyers in selected regional areas, with only a 5% deposit and no LMI needed.
It is only available to 10,000 people nationwide every financial year and will run from October 1, 2022, until June 30, 2025.
First introduced in July 2017, this is a savvy way for savvy first-home buyers to simply use their super funds - or at least their voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions - to purchase a property.
As of July 2022, eligible super contributions that counted towards releasable property amounts increased from $30,000 to $50,000.
- NSW * FHOG (new homes only) A $10,000 grant for buying or building a new home worth no more than $750,000. * First-Home Buyers Assistance Scheme (new and existing homes or vacant land). This grant allows for full or partial financial assistance with stamp duty (known in NSW as transfer duty) for homes valued at up to $1 million.
- Victoria * FHOG (new homes only) A $10,000 grant for buying or building a new home worth no more than $750,000. * Home Buyer Fund Another shared government equity scheme, eligible first home buyers will receive a state government contribution of up to 25% of their property's purchase price, which in turn will mean just a 5% deposit and no LMI is needed. * Extra duty concessions Buyers may also be eligible for discounts on stamp duty and similar fees including those for owner-occupiers.
- Queensland * FHOG (new homes only) A $15,000 grant for buying or building a new home worth no more than $750,000. * Transfer duty concessions No stamp duty is needed for existing homes purchased for less than $500,000.
- ACT * Home Buyer Concession Scheme (new and existing homes or vacant land) A concession can be granted to intended owner-occupiers who haven't bought a home in at least two years, based on income thresholds and the number of dependants. The maximum concession amount is now $35,910.
- South Australia * FHOG (new homes only) A $15,000 grant for potential owner-occupiers buying or building a new home worth no more than $575,000. * HomeStart Another type of government shared equity loan, those eligible can borrow up to $10,000 for a property with no interest or repayments needed for five years. The net income cap rate is $90,000 for couples.
- Western Australia * FHOG (new homes only) A $10,000 grant for potential owner-occupiers buying or building a new home worth no more than up to $750,000 in Perth or up to $1 million in and around the northern area of the state. * First Home Owner Rate of Duty Those eligible for the FHOG are also eligible for stamp duty concessions for homes worth up to $530,000 and vacant land worth $400,000 and under.
- Northern Territory * FHOG (new homes only) A $10,000 grant for potential owner-occupiers buying or building a new home NB: neither property value nor buyer income affects the FHOG in the Northern Territory.
- Tasmania * FHOG (new homes only) A $30,000 grant for buying or building a new home worth no more than $750,000. * First-Home Owner Duty Concession (established homes) Buyers can receive a 50% discount on homes worth $600,000 or less.
We’re here to help
If you're a first home owner we can help you navigate the many first home owner grants and schemes and calculate your repaymentsso there's no surprises. We work hard to find the best home loan for you and your unique financial situation from over 40 of Australia’s biggest banks and specialist lenders.
So give us a call today at Lending Loop!