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.