First Home Buyers Guide: What’s available for you?

What grants and incentives can first home buyers get?

As a first home buyer, you may be eligible to take advantage of various incentives and grants offered by the government. But how do you know what’s relevant to you? We’ve summarised what’s available state by state below.

Nationally:

• Practising solicitors are eligible to borrow with a 10% deposit with eligible lenders. This can be used in conjunction with government grants and incentives. Current practising certificate is required and you won’t need a parental guarantee or to pay LMI.

There are 3 government schemes that are offered nationally:

• The First Home Guarantee (FHBG) – Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance. From 1 July 2024 – 30 June 2025, 35,000 FHBG places are available. 
• The Regional First Home Buyer Guarantee (RFHBG) – The RFHBG aims to support eligible regional home buyers to buy a home sooner, in a regional area. Under the RFHBG, part of an eligible regional home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. From 1 July 2024 – 30 June 2025, 10,000 RFHBG places are available. 
• The Family Home Guarantee (FHG) – The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner. Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance. From 1 July 2024 – 30 June 2025, 5,000 FHG places are available. 

New South Wales:

• Stamp duty exemptions apply for properties under $800,000 or vacant land under $350,000.
• Discounted stamp duty rate for properties between $800,000-$1,000,000, or vacant land between $350,000-$450,000.
• First Home Owner (New Homes Grant): $10,000 grant if you purchase a newly built house, townhouse, apartment or unit. The purchase price must not exceed $600,000. If you purchase vacant land and sign a building contract with the builder, the total combined cost must not exceed $750,000.

Source: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme

Australian Capital Territory:

• Home buyer concession scheme: From 1st July 2019, eligible home buyers in the ACT will pay no or reduced duty if the total gross income of all buyers, including their partners (if any) must not be greater than the relevant income threshold. All properties in the ACT are eligible for this scheme. It applies to vacant residential land and both new and established homes, anywhere in the ACT and at any price.

Source: https://www.revenue.act.gov.au/home-buyer-assistance/home-buyer-concession-scheme

Victoria:

• Stamp duty exemptions apply for properties under $600,000.
• Reduced stamp duty on properties between $600,001-$750,000.
• First Home Owner Grant (FHOG): $10,000 grant for new properties under $750,000. To be eligible, your new home must be valued at $750,000 or less and be a new home. The property must not have been previously sold as a place of residence, occupied as a home, or leased out or used for short-term accommodation, such as Airbnb.

Source: https://www.sro.vic.gov.au/first-home-owner

Queensland:

• Transfer duty exemptions apply to new properties under $700,000 and vacant land under $350,000.
• Discounted transfer duty on properties under $800,000 or vacant land under $500,000.
• First Home Owner Grant: The first home owner grant gives eligible first-time home buyers $30,000 towards buying or building a new home in Queensland between 20 November 2023 and 30 June 2025. You must be buying or building a new home valued less than $750,000 (including land and any contract variations).

Source: https://qro.qld.gov.au/property-concessions-grants/

Northern Territory:

• If you plan to buy a house and land package in the Northern Territory (NT), you may be eligible for an exemption on stamp duty. You can do this under the House and Land Package Exemption (HLPE).
• First Home Owner Grant (FHOG): $10,000 grant to buy or build a new home of any value.

Source: https://nt.gov.au/property/home-owner-assistance

South Australia:

• First-home buyers in South Australia who build or buy a new home may get a $15,000 grant and avoid paying any stamp duty, regardless of the value of the home. 
• First Home Owner Grant: $15,000 grant for new properties that have not been previously occupied or sold as a place of residence and includes a substantially renovated home. A first home owner grant is available for new homes with a value of up to: $650,000 or less where the contract was entered between 15 June 2023 and 5 June 2024; or $575,000 or less where the contract was entered into on or before 14 June 2023. No property value cap applies where the contract was entered into on or after 6 June 2024. 

Source: https://www.revenuesa.sa.gov.au/FHOG

Western Australia:

• Stamp duty exemptions apply for properties under $450,000 or vacant land under $300,000.
• Discounted stamp duty on property between $450,000 – $600,000, or vacant land between $300,000-$400,000.
• First Home Owner Grant (FHOG): The FHOG is a one-off payment of up to $10,000 for eligible applications from people buying or building their first new home. There are no income or assets tests to qualify for the FHOG.

Source: https://www.wa.gov.au/organisation/department-of-finance/fhog

Tasmania:

• 100% duty exemption applies on property transfer duty for first home buyers of an established home, which have a dutiable value of $750,000 or less between 18 February 2024 to 30 June 2026. 
• First Home Owner Grant (FHOG): $10,000 grant for a new home that has not previously been occupied or sold as a place of residence and includes kit homes from 1 July 2024.

Source: https://www.sro.tas.gov.au/first-home-owner

The process of purchasing a new home can be complex, especially as a first home buyer. Exact entitlements and eligibility will vary depending on each state’s laws. For more information, chat to your legal representative or click on your relevant state’s link.

Want to borrow with a 5% deposit? Chat to us today.

Updated: 5th September 2024