Legal Home Loans

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 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:

  • First Home Loan Deposit Scheme (FHLDS) supports you to buy your first home sooner with a deposit as little as 5%. 10,000 places will be available to eligible first home buyers from 1 July 2021 to 30 June 2022.
  • New Home Guarantee (NHG) supports you to buy or build a new home, with a deposit as little as 5% and higher property price caps available in selected areas. The scheme has been extended with an additional 10,000 places available from 1 July 2021 to 30 June 2022.
  • Family Home Guarantee (FHG) aims to support eligible single parents with at least one dependent child in purchasing a family home, with a deposit as little as 2%.
New South Wales:
 
  • Stamp duty exceptions apply for properties under $650,000 or vacant land under $350,000.
  • Discounted stamp duty rate for properties between $650,000-$800,000, or vacant land between $350,000-$450,000.
  • $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:

  • From 1 July 2019, eligible home buyers in the ACT will pay no or reduced duty if their total gross income over the full financial year is less than or equal to the thresholds.
  • All properties in the ACT are eligible for this scheme. 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 $600,000-$750,000.
  • $10,000 grant for new properties under $750,000.
  • From 8th October 2021, eligible homebuyers can receive a contribution of up to 25% towards the purchase price of their property, reducing their minimum required deposit to 5% and avoiding the need the pay LMI.

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

Queensland:

  • Stamp duty exemptions apply for properties under $500,000 or vacant land under $250,000
  • Discounted stamp duty on properties under $549,999, or vacant land under $399,999.
  • $15,000 grant for new properties under $750,000.

Source: https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/concessions-on-transfer-duty/concessions-for-homes

Northern Territory:

  • Stamp duty exemptions apply for properties under $500,000
  • Discounted stamp duty on properties between $500,000-$650,000.
  • Household Goods Grant of up to $2,000 available for new property purchases to assist with setting up your household.
  • $10,000 grant for new properties of any value.

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

South Australia:

  • All first home buyers must pay stamp duty.
  • Off-the-plan stamp duty concession available of up to $21,330 on properties under $500,000.
  • For new or off- the- plan properties, varying amounts of grants are available depending on when the property was built.
  • $15,000 grant for new properties under $575,000.

Source: https://www.revenuesa.sa.gov.au/taxpayer-stories/first-home-buyer

Western Australia:

  • Stamp duty exemptions apply for properties under $430,000 or vacant land under $300,000.
  • Discounted stamp duty on property between $430,000-$530,000, or vacant land between $300,000-$400,000.
  • $10,000 grant for new properties of any value.

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

Tasmania:

  • 50% discount applies on property transfer duty for first home buyers of an established home, which was dutiable value of $500,000 or less.
  • $30,000 grant for new properties of any value.

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 will vary depending on each state’s laws. For more information, chat to our team or click on your relevant state’s link.

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

Leave a Comment

Your email address will not be published. Required fields are marked *