Options for first home buyers

Buying your first home is an exciting milestone, but navigating the process, and the paperwork, can feel overwhelming. Thankfully, there’s a range of government grants and schemes available to support first home buyers in Australia. Whether you’re trying to save for a deposit or looking to reduce upfront costs, understanding your options with a Mortgage Broker is a great place to start.

Below, we break down some of the most popular grants and initiatives designed to help Australians take their first step onto the property ladder.

First Home Owner Grant (FHOG)

The First Home Owner Grant (FHOG) is one of the most well-known forms of assistance for first home buyers. Although it’s a national scheme, it’s administered at a state and territory level, meaning eligibility requirements and payment amounts can vary depending on where you live.

Key Features:

The FHOG is typically available for those purchasing or building a new home.
The grant amount varies by state. For example:
- In New South Wales, eligible buyers may receive $10,000 for new homes valued up to $600,000 or new home builds up to $750,000.
- In Queensland, the grant ranges from $15,000 to $30,000, depending on location.
The grant is usually paid at the time of settlement or during the construction process.

Things to Keep in Mind:

Existing homes typically do not qualify for the FHOG.
There are property value caps that differ from state to state.
This grant is often used in conjunction with other schemes.

First Home Guarantee (FHBG)

Saving for a deposit is one of the biggest hurdles for first home buyers, but the First Home Guarantee (FHBG) aims to make this process a little easier. This scheme is part of the government’s broader Home Guarantee Scheme and helps eligible buyers purchase a home with a deposit as small as 5%, without needing to pay Lenders Mortgage Insurance (LMI).

Key Features:

The government acts as a guarantor for up to 15% of the property’s value.
Helps buyers avoid LMI, which can be costly.
Available to Australian citizens and permanent residents, aged 18+.
Income thresholds apply:
- Up to $125,000 for individuals
- Up to $200,000 for joint applicants

Eligibility Notes:

Property price caps vary based on location (capital city vs. regional).
Applicants must intend to live in the property.

First Home Super Saver Scheme (FHSSS)

For those looking for a smarter way to save, the First Home Super Saver Scheme (FHSSS) lets first home buyers make voluntary contributions to their superannuation fund to build their deposit more efficiently.

How It Works:

Contributions are made through salary sacrifice or after-tax payments.
These contributions are taxed at a concessional rate, typically lower than your marginal tax rate.
You can later withdraw these contributions, plus any associated earnings, to put toward your first home deposit.

Why Consider It?

Potential for tax savings while you build your deposit.
Encourages structured, disciplined savings through your super fund.
May allow you to access your deposit sooner.

Regional First Home Buyer Guarantee

If you’re buying in a regional area, you may be eligible for the Regional First Home Buyer Guarantee, another component of the Home Guarantee Scheme.

How It Helps:

Supports first home buyers in regional locations with similar benefits to the FHBG.
Allows for a 5% deposit without needing to pay LMI.
Helps address housing affordability in regional communities.

Eligibility Criteria:

Must intend to live in the property.
Property and income caps apply.

Additional Assistance: Stamp Duty Concessions & State-Specific Schemes

Beyond these national schemes, many state and territory governments offer additional incentives to help first home buyers, such as:

Stamp Duty Concessions:

Some states offer full or partial exemptions on stamp duty for first home buyers.
Eligibility usually depends on property value thresholds.

Examples of State-Based Support:

Victoria: First home buyers may be eligible for stamp duty exemptions on homes valued up to $600,000 and concessions on homes valued up to $750,000.
ACT & WA: Varying grants and concessions depending on location and property type.
Queensland & NSW: Often the most generous with grants and schemes targeting new builds and regional buyers.

What Should First Home Buyers Consider?

Before applying for any grant or scheme, it’s important to understand your specific eligibility and how these programs can impact your financial situation.

Here’s what to keep in mind:

Eligibility criteria vary widely between schemes and states.
Check for property price caps and whether new or existing homes qualify.
Consider how using these grants could influence your loan structure or borrowing capacity.
Seek professional financial advice to determine which option best suits your circumstances.

Why Work with a Mortgage Broker?

Navigating the maze of first home buyer incentives can be tricky. Working with an experienced mortgage broker can help you:

Understand your borrowing capacity.
Identify which grants and schemes you’re eligible for.
Compare loans across a range of lenders.
Streamline your paperwork and application process.
Ensure you’re maximising your entitlements while finding a loan that fits your future goals.

At The Hrkac Group, our lending experts specialise in guiding first home buyers through this process with clarity and care.

Final Thoughts

Buying your first home is one of the biggest financial decisions you’ll make, but it doesn’t have to be overwhelming. With a little knowledge and the right support, you can take advantage of the grants and schemes available and make your homeownership dream a reality.

If you’re ready to explore your options, book an appointment with our team today. We’re here to help you through every step of the journey. To make an appointment to meet with one of our friendly Geelong Mortgage Brokers, contact us via email or phone (03) 5224 2366.

General Advice Warning: This information has been provided as general advice and does not take into account your individual objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information with regard to your personal circumstances and seek professional advice.

Liability limited by a scheme approved under Professional Standards Legislation.

The Hrkac Group has access to a Car Buying Service for both Corporate and Private car buyers with an impartial, cost-effective, and stress-free solution for purchasing your new motor vehicle. An average car purchase takes approx. 40 hours from start to finish, this service can eliminate all that stress.

The process is, we get to understand the client’s new vehicle requirements and can offer suggestions if required. We arrange a test drive at your local dealership in the chosen vehicle or it can be brought to your home or workplace without any obligation to buy. We handle all the price negotiations with our preferred dealers to ensure the exact vehicle you want at the very best price.

We can sort out your trade-in also to obtain the best price. We arrange the paperwork, car accessories, and registration. We can deliver the car to your home or work and we can take you through your new vehicle. If you prefer, your car can be picked up at the dealership. There are no fees for this service. You pay the best price that has been negotiated for your new vehicle.

Should you, your staff, family, or friends like further information, contact The Hrkac Group Finance Department, on 5221 2355 or email paul@hrkacgroup.com.au. We have had multiple clients use it so far and it has saved them time and stress and as a result, they have recommended it to others already.

So for borrowers, what are our alternatives?

On Wednesday evening, Westpac announced their intention to increase the interest rate on their owner-occupier and investor loans by 0.2% and the likelihood of the other major lenders following suit is quite high.

With this decision affecting those with personal loan, investment loans and business loans alike, it begs the questions; what is our alternative to the major lenders?

Well, the Finance division at the Hrkac Group Geelong can help! We have been provided with some very attractive alternatives to the major lenders with application and annuals fees being waived, interest rates reduced to record lows and cash rebates for refinancing on offer, there are thousands of dollars to be saved every year!

There has never been a better time to come in and see our Loan specialists at the Hrkac Group. We will review your current loan and help you understand the best possible options available to you, all free of charge!

The Reserve Bank of Australia has announced the result of its monthly board meeting.

The official cash rate has been reduced to a new record-low of 2.25 per cent after being left on hold at 2.5 per cent since August 2013.

The Reserve Bank’s decision has come as a surprise: a finder.com.au survey of 30 economists and commentators found that 28 expected the cash rate to remain unchanged.

However, a rate cut is hardly a shock given the weight of speculation that has occurred since the last board meeting on December 2.

If you have any questions regarding these announcements, feel free to contact our Finance Team.

Have you been putting off buying that new vehicle because the interest rates are just too high?

Did you miss our previous Finance offer of low interest rate of 4.99% for vehicles (up to three years old) over $35,000?

Then get in quick to see our Geelong Finance specialists to grab a great deal, with interest rates at a low 4.99%* (*used vehicle up to three years old)

This offer has been extended for a short-time only!

But what if you are looking for a vehicle that’s over $60,000? Don’t worry, The Hrkac Group Finance has a low interest rate for you, too! At a low 4.89% for vehicles up to three years old. There is no better time than now!

You don’t see interest rates this low everyday, so act now!

Please contact one of The Hrkac Group Geelong Finance specialists today via Contact Us, email or phone 03 5221 2355.

Are you looking at purchasing a new or used vehicle over $35,000?

Then get in quick to see our Geelong Finance specialists to grab a great deal, with interest rates at a low 4.99%* (*used vehicle up to three years old)

Not only could you score a competitive deal but it could also be a Tax Planning advantage if purchased before the End of Financial Year!

Want to know how a vehicle purchase can benefit you when it comes to Tax? Why not come in and discuss with one of our experienced Geelong Accounting team members.

So act now! Please contact one of The Hrkac Group Geelong Finance specialists today via Contact Us, email or phone 03 5221 2355.

When was the last time you checked your Home Loans and Residential Investment Finance loan rates? With rates at their lowest levels in recent history, now may be the time to fix your Interest rate on your loan.

Did you realise a one per cent increase in your Interest rate, on a $300,000 loan, equates to an increase in your monthly interest repayments and therefore the bank taking an extra $250 a month from your pay. Can you afford to be exposed to this risk?

If not, Geelong’s Finance Specialists at The Hrkac Group can assist you with reviewing your fixed rate options.

This could include switching to the National Australia Bank (NAB) for following fixed rate options, or any of our other 20+ lenders offering similar rates.

NAB announced on Monday 3^rd March 2014 that the bank had cut two-year fixed rates from 4.89 per cent to 4.84 per cent, three-year fixed rates from 5.13 per cent to 5.06 per cent and five year fixed rates from 5.79 to 5.69 per cent.

According to NAB, the two-year fixed rate is now the lowest it has been in more than 20 years.

NAB’s group executive for personal banking, Gavin Slater, said the bank was a market leader when it came to rates.

“NAB is committed to driving competition in the banking industry and providing our customers with the best products and great service because what’s good for our customers is good for our business,” he said.

“We have seen increased demand for fixed-rate home loans in the past 12 months, so we know many homeowners are looking for certainty, whether they are investors or first home buyers, and NAB is offering that through these market-leading fixed home loan rates.”

Please contact one of The Hrkac Group Geelong Finance specialists today via Contact Us, email or phone 03 5224 2366.

Geelong Finance team partners up with leading Vehicle and Equipment Finance business.

The Geelong Finance team at The Hrkac Group is pleased to announce we have recently partnered with one of Australia’s largest car and equipment finance brokers.

This partnership now allows us to provide our clients with the most competitive finance rates from Australia’s “largest panel of leasing & equipment finance lenders”.

Whether you are looking for Car Loans, Finance Lease, Commercial Hire Purchase, or a Chattel Mortgage, we can now assist you.

So if you are in the market for a new car or perhaps considering a purchase in the future, please do not hesitate to contact the Geelong Finance Team at The Hrkac Group to organise an obligation-free quote today!

Recently the staff at The Hrkac Group participated in the Multi-Sport Festival in Geelong.

The event saw staff from Accounting, Financial Services & Finance complete in either the 5km or 10km fun walk/run events.

It was a great team bonding event and a sense of personal satisfaction for everyone to complete the course.

As a result, we are hoping we may be able to participate in a similar event as a team later in the year.

Recently for Christmas 2012 – the staff of The Hrkac Group Accountants and Financial Services decided that instead of holding a Kris Kringle through their Social Club which is called FIFA, that they would instead donate money to the BayFM Bethany Giving Tree Appeal.

Through this effort over $200 was raised, allowing for some children in Geelong the experience of receiving a Christmas gift, when otherwise they may have missed out.

It is amazing the feeling you can receive from the gift of giving and the knowledge you have made someone smile….

The staff has other ideas in tow so we will update you on these as they occur…