First Home Loan Grant:
Everything You Need To Know

Buying your first home is one of the biggest decisions you’ll make in your life. It’s an exciting time as you begin to secure your future home for yourself and your family.

Luckily, you can benefit from government homeowner grants that are helping first-time buyers like yourself to get a footing on the Australian property ladder.

In this article, we’ve provided all the information about the first home loan grants, detailing what each entails, the eligibility criteria, and stamp duty concessions.

What Is the First Home Owners Grant?

The First Home Owner Grant (FHOG) is a government concession scheme that supports first-time buyers to purchase a home or residential land. It consists of a one-off payment to assist with your first new home purchase.

The one-off amount and the eligibility criteria vary depending on your state and territory. Alongside a one-off payment, first-time buyers can access reduced rates or exemptions on stamp duty (transfer duty). These concessions fall under the First Home Buyers Assistance Scheme that is also on offer for first-time buyers. This scheme can be used on both new and existing homes, unlike the FHOG.

So, what’s on offer for you?

1. $10,000 one-off payment towards the purchase price.
2. Full or partial exemption on transfer duty.

These schemes cover houses, apartments, units, townhouses, off-the-plan purchases, and substantially renovated homes.

Who Much Can You Spend?

If you’re planning to apply for the first homeowner scheme, your potential purchase price must not exceed $600,000.

If it’s vacant land with a building contract you’re planning, the total combined cost must not exceed $750,000. For substantially renovated house purchases by the seller, the price cannot be more than $600,000

Can The First Home Owners Grant Be Used for Your Deposit?

This is a common question about the First Home Owner Grant, and the answer will largely depend on the lender you choose. Lenders tend to consider a borrower’s eligibility in different ways.

This means that some lenders will let you use government grants to support your deposit, and other lenders will require proof of savings.

Who Is Eligible?

Eligibility criteria will differ depending on your territory, but more often than not, you will be required to meet the following conditions

1. Must be at least 18 years old.
2. You must be buying your first home. This does not include companies or trusts.
3. At least one applicant on your form must be a permanent resident or Australian citizen.
4. You, your partner, or co-purchaser must not have previously owned any type of house before 1 July 2000.
5. You must occupy the home as your principal place of residence within 12 months of the purchase and reside there for a minimum of 6 months.

Supporting Documentation Required

If you’re planning to apply for the government scheme, you’ll need supporting documentation for four different categories

1. Category 1: Identification document such as Australian Birth Certificate or foreign passport and visa.
2. Category 2: Signature and photograph like a driver’s license.
3. Category 3: Proof of operating in a community like a medicare card.
4. Category 4: Current address from a utility bill.

What Are the Eligibility Criteria for My Territory?

For more detailed information about the First Home Owner Grant in your territory, take a look below.

New South Wales

For those living in New South Wales:

1. First home buyers can access a grant of $10,000 on a new home up to $600,000 and $750,000 on properties to be built.
2. Your stamp duty will be waived if the new or established property is between $650,000 and $799,000.
3. You must live in the house for at least six months.

Queensland

For first-time buyers in Queensland

1. Access to a grant of $15,000 when you buy or build a house with a value of up to $750,000
2. Stamp duty discounts are available on both new and established homes.
3. You must live in the house for at least six months.

Victoria

For first-time buyers in Victoria

1. You can receive a $10,000 grant when you buy or build a new home valued at up to $750,000.
2. In regional areas of Victoria, $20,000 grants are available for homes worth up to $750,000.
3. Homes must be less than five years old to be considered new.
4. You must live in the house for at least six months.

Northern Territory

For those looking to buy in the Northern Territory:

1. Grants of $10,000 for first home buyers on any valued property.
2. Stamp duty concessions of up to $23,900 for buyers of established homes.

Australian Capital Territory

For those looking at properties in the Australian Capital Territory:

1. First-time buyers who purchased a new home between January 2017 and June 2019 are eligible for a $7,000 grant.

Western Australia

For first-time buyers in Western Australia:

1. $10,000 grants for those looking to purchase or construct a new home.
2. Cap will be either $750,000 or $1 million, depending on your location.
3. You must live in the house for at least six months.

South Australia

Finally, for applying in South Australia:

1. First-time buyers can receive a grant worth $15,000 for properties valued up to $575,000.

Are First Time Home Buyers Exempt from Stamp Duty?

The good news for first-time homebuyers in Australia is that they are eligible for both a one-off payment and potential savings on stamp duty. This applies to both new and established homes.

You will be able to access concessions on stamp duty if your property purchase is between $650,000 and $799,999. Properties purchases of $800,000 or above will not be able to access stamp duty savings.

Stamp Duty Savings for First Home Owners

Since August 2021, the following stamp duty savings will apply for first-time buyers:

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How To Apply

It’s easy to apply for the First Home Owner Grant, and a mortgage choice broker at Lendstreet can help you with all the criteria and paperwork.

Once you’ve checked your eligibility and gathered all your supporting evidence from the four categories, you can lodge your application.

What Other First Home Buyer Assistance Is Available in Australia?

The First Home Owner Grant and the stamp duty concessions are not the only government assistance available to first-time homebuyers. The Australian government also supports first-time buyers with reduced deposit schemes, family home schemes, and super saver schemes.

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme (FHLDS) is an initiative that is again helping first-time buyers buy or build a home sooner.

Generally, when first home buyers purchase a house with a deposit of less than 20%, they’re required to pay Lenders Mortgage Insurance (LMI). LMI is a type of insurance that protects the lender, not the borrower (you).

This scheme allows first-time buyers to access a lower deposit of 5% without paying Lenders Mortgage Insurance (LMI).

The government has created 10,000 places on this scheme for eligible first home buyers between July 2021 and June 2022. To qualify for this scheme, you must purchase a residential property such as an existing house, apartment, land package, land with a separate contract, or off-the-plan property.

Family Home Guarantee

The Family Home Guarantee is aimed at eligible single parents who are supporting at least one dependent child. This scheme doesn’t require the single parent to be either a first home buyer or a previous homeowner.

The government is making 10,000 of these family home guarantees available between July 2021 and June 2025. A single parent can purchase a home with as little as a 2% deposit.

First Home Super Saver Scheme (FHSS)

Introduced in the Federal Budget of 2017-18, the First Home Super Saver Scheme (FHSS) aims to reduce the pressure of housing affordability.

The FHSS scheme is allowing first buyers to use voluntary contributions from superannuation as part of their deposit.

This means that you can make before-tax or after-tax contributions in your super fund. These funds can then be withdrawn when you’re ready to purchase a home.

To be eligible for this scheme, you must:

1. Have never owned property in Australia before.
2. Be 18 years of age or older.
3. Have not had any previous amount released from superannuation using this scheme.

Ready To Secure Your First Home Loan?

Now you know all the government grants available for first-time buyers and how each one works, let’s see if we can find you the right home loan package.

At Lendstreet, we believe your first home purchase is one of the most significant moments of your life, so we want to make sure you receive as much support as possible.

That’s why we offer personalised expert advice, process all the financial paperwork for you, and provide ongoing support even after our appointments.

Get in touch with us today, and we can start your home-buying journey together.

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FAQ

How Much Is the First Home Buyers Grant NSW 2021?

The First Home Owner Grant (FHOG) is a government concession scheme supporting first-time buyers to purchase a home or residential land. The FHOG consists of a one-off payment to assist with your first new home purchase. First-time buyers can also access reduced rates or even exemptions on stamp duty.

Are There Grants for First-Time Homebuyers?

There are many Australian grants available for first-time home buyers. The First Home Owner Grant (FHOG) consists of a one-off payment to assist with your first new home purchase. The First Home Buyers Assistance Scheme allows access to reduced rates or even exemptions on stamp duty. The First Home Loan Deposit Scheme (FHLDS) enables first-time buyers to access a lower deposit of 5% without paying Lenders Mortgage Insurance (LMI).

Is Stamp Duty Waived for First Home Buyers In NSW?

The First Home Buyers Assistance Scheme provides first home buyers access to reduced rates or exemptions on stamp duty. For example, using this scheme with a property purchase price of $650,000 will allow you to save $22,200 as your stamp duty will be completed waived.

Who Is Eligible for The First Home Buyers Grant NSW?

To be eligible for the First Home Owner Grant (FHOG) in NSW, you must be buying your first home and never owned a home in Australia before. You must also be 18 years or older, at least one applicant must be a permanent resident, and you must occupy the home as your principal place of residence within 12 months of purchase.

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