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Australia has a series of grants and concessions aimed at alleviating some of the financial pressure that comes with buying your first home. 

Buying a property is no easy feat, with property prices climbing in many cities and regions. 

This article will introduce you to the schemes that can help you with the purchasing or constructing of your first home. 

- __Related:__ [UPDATED: Calling all first home buyers! A must read guide to the First Home Loan Deposit Scheme](https://www.lendi.com.au/inspire/finance/explained-the-first-home-loan-deposit-scheme/)
- __Related:__ [Pros and cons of fixed vs variable interest rates in 2021](https://www.lendi.com.au/inspire/finance/comparing-fixed-vs-variable-interest-rates/)
- __Related:__ [A beginner's guide to buying your first home](https://www.lendi.com.au/inspire/finance/buying-your-first-home/)

&nbsp;
## First Home Owner Grant

The [First Home Owner Grant](https://www.lendi.com.au/home-loans/first-home-owner-grant/) (FHOG) – also known as the first home buyers grant – is a nation-wide, state-administered grant offered to first home buyers to alleviate the impact of GST on home ownership. 

This grant for new home owners can go towards covering your deposit, but you’ll usually also need to have further savings. If your savings paired with the FHOG aren’t enough for a deposit, you could look into getting a [guarantor home loan](https://www.lendi.com.au/home-loans/guarantor/). 

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&nbsp;
## Who is eligible for the First Home Owner Grant?

The eligibility requirements for the First Home Owner Grant varies slightly between the states. Some of the common criteria includes:

- You must be buying or building your first home
- The home must be newly built and never lived in
- You must be at least 18 years of age and be an Australian citizen or permanent resident
- The home must be intended to be your principal place of residence
- You must move into the home within 1 year of purchasing and live there for at least 6 months
- Property value thresholds limit eligibility ($750,000 cap in most states)

Check the requirements specific to your state/territory to know whether you’re eligible for a grant. 

&nbsp;
## How much is the First Home Owner Grant?

The size of the grant varies between states and territories:

- [ACT](http://www.revenue.act.gov.au/home-buyer-assistance/first-home-owner-grant): FHOG scheme no longer available from 1 July 2019. It was replaced with greater stamp duty exemptions and concessions.
- [NSW](https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer): $10,000
- [NT](https://nt.gov.au/property/home-owner-assistance/first-home-owners/first-home-owner-grant): $10,000
- [QLD](https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant): $30,000 – 💡 __Did you know?__ On 20 November 2023, this first home buyers grant in QLD doubled from the previous $15,000
- [SA](https://www.revenuesa.sa.gov.au/first-home-owners-grant): $15,000
- [TAS](https://www.sro.tas.gov.au/first-home-owner/eligibility): $20,000
- [VIC](https://www.sro.vic.gov.au/fhogapply): $10,000 or $20,000 for homes built in regional Victoria
- [WA](https://www.wa.gov.au/organisation/department-of-finance/fhog?utm_source=redirect&utm_medium=finance_wa_fhog): $10,000

&nbsp; 
## Home Guarantee Scheme

The Home Guarantee Scheme is a collection of three different guarantees available to Australian home buyers, namely:

1. First Home Guarantee
2. Family Home Guarantee
3. Regional Home Guarantee.

Continue reading to learn more about each of these guarantees and the eligibility requirements for each.

%%Could you be eligible for government help?%%

&nbsp;
### First Home Guarantee

The First Home Guarantee is a federal government initiative designed to assist first-time home buyers in purchasing their first property sooner by waiving [Lenders Mortgage Insurance (LMI)](https://www.lendi.com.au/home-loans/lmi/). 

A total of 35,000 places will be offered from 1 July 2023 to 30 June 2024.

Traditionally, home buyers are charged LMI when their deposit is less than 20% of the value of their home. However, with this scheme, eligible first home buyers can purchase their desired property with just a deposit of 5%, with the government guaranteeing the remaining 15%.

To be eligible for this guarantee, applicants must:

- Apply individually or jointly with another person.
- Be 18 years of age or older
- Be an Australian citizen or a permanent resident at the time of entering into the loan agreement
- Earn up to $125,000 as an individual or $200,000 as a couple
- Intend to live in the property as owner-occupiers
- Purchase an eligible property such as an existing house, townhouse or apartment, land and a separate contract to build a home, or an off-the-plan apartment or townhouse
- Be individuals who are first home buyers or previous property owners who haven't owned a property in Australia in the past 10 years.

You can find property price caps below:

| State/territory     | Capital city/regional centres     | Rest of state     |
| ---------- | ---------- | ---------- |
| NSW       | $900,000       | $750,000       |
| VIC       | $800,000       | $650,000       |
| QLD       | $700,000       | $550,000       |
| WA       | $600,000       | $450,000       |
| SA       | $600,000       | $450,000       |
| TAS       | $600,000       | $450,000       |
| ACT       | $750,000       | -       |
| NT       | $600,000       | -       |

&nbsp;
### Family Home Guarantee

Introduced in the 2021 Federal Budget, the Family Home Guarantee offers a helping hand to single parents and legal guardians with at least 1 dependent child who aspire to purchase their own home. 

From 1 July 2023 to 30 June 2024, a total of 5,000 spots are available for this guarantee.

Under this scheme, eligible participants can own a home with a deposit as low as 2%, without needing to pay Lenders Mortgage Insurance (LMI). The government provides a guarantee of up to 18% of the home's purchase price, covering the remaining portion of the deposit.

To qualify for this guarantee, applicants should meet the following criteria:

- Be a single parent or single legal guardian with at least one dependent.
- Hold Australian citizenship or permanent resident status.
- Have an annual taxable income of up to $125,000.

The eligible properties and property price caps for the Family Home Guarantee align with those of the First Home Guarantee scheme.

&nbsp;
### Regional Home Guarantee

The Regional Home Guarantee is the final segment of the Home Guarantee Scheme. 

From 1 July 2023 to 30 June 2024, a total of 10,000 spots are available for this guarantee, specifically targeted towards individuals who wish to build or buy a newly constructed home in regional areas.

Participants in this scheme can secure their dream home with a deposit as low as 5%, as the government guarantees up to 15% of the remaining deposit.

While the Regional Home Guarantee welcomes applications from first home buyers, it is also inclusive of individuals who haven't owned a property in the past 5 years. 

A total of 10,000 places are open to eligible Australian citizens and permanent residents.

To be eligible for this guarantee, applicants should fulfil the following criteria:

- Hold Australian citizenship or permanent residency
- Not have owned a property in the past 10 years
- Intend to occupy the property as their primary residence, rather than purchasing it for investment purposes.

You can find property price caps below:

| State/territory    | Regional centre     | All other regional areas     |
| ---------- | ---------- | ---------- |
| NSW       | $900,000      | $750,000      |
| VIC       | $800,000       | $650,000        |
| QLD       | $700,000        | $550,000        |
| WA       | -       | $450,000       |
| SA       | -       | $450,000       |$450,000
| TAS       | -       | $450,000       |$450,000
| ACT       | -       | Not applicable       |
| NT Regional       | -       | $600,000      |

%%Check today's competitive home loan rates%%

&nbsp;
## First Home Super Saver Scheme

The Australian Government introduced the First Home Super Saver (FHSS) Scheme in July 2017 as a solution to address the challenges of housing affordability.

Under this scheme, aspiring homeowners can make voluntary contributions towards their super fund to save for their first home. These contributions can be withdrawn when they are ready to purchase a property.

First-time buyers have the flexibility to withdraw:

- 100% of their non-concessional (post-tax) amounts
- 85% of their concessional (pre-tax) amounts.

It's important to keep in mind that only one request can be made to release funds from the FHSS scheme. The request must be submitted within 14 days of signing the property contract.

Once the request is made, it typically takes approximately 15 to 25 business days to receive the funds.

While the minimum age requirement to release funds is 18 years, contributions can be made before reaching this age.

&nbsp;
## Who is eligible for the First Home Super Saver Scheme?

Applicants must fulfil the following eligibility criteria:

- Intend to occupy the property as the owner-occupier
- Plan to reside in the property for a minimum of 6 months within the first 12 months of ownership
- Be a first home buyer in Australia.

&nbsp;
## Stamp duty concessions and exemptions for first home buyers

Other than the deposit, [stamp duty](https://www.lendi.com.au/home-loans/stamp-duty/), otherwise known as transfer duty, is usually the largest upfront cost associated with buying a property. 

Stamp duty is a one-off fee you pay to the government when you buy land or property. It is a state-regulated tax that you must pay for each property you purchase.

Luckily, several Australian states and territories offer concessions and exemptions on stamp duty for first home buyers. These participating states will give first home buyers concessions or full exemptions if they are purchasing an owner-occupied home valued under a certain threshold. 

Some states (e.g. Northern Territory) don’t have stamp duty concessions in place specifically for first home buyers. However, you may still be eligible for other concessions. In the [Northern Territory](https://www.lendi.com.au/home-loans/stamp-duty-nt/), for example, there is a concession available for all home buyers so long as the property will be their principal place of residence. 

Find out how stamp duty works in your state or territory:

- [New South Wales](https://www.lendi.com.au/home-loans/stamp-duty/nsw/)
- [Queensland](https://www.lendi.com.au/home-loans/stamp-duty/qld/)
- [Victoria](https://www.lendi.com.au/home-loans/stamp-duty/vic/)
- [Western Australia](https://www.lendi.com.au/home-loans/stamp-duty/wa/)
- [South Australia](https://www.lendi.com.au/home-loans/stamp-duty/sa/)
- [Tasmania](https://www.lendi.com.au/home-loans/stamp-duty/tas/)
- [Australian Capital Territory](https://www.lendi.com.au/home-loans/stamp-duty/act/)
- [Northern Territory](https://www.lendi.com.au/home-loans/stamp-duty/nt/)

&nbsp;
## How much does stamp duty cost?

The cost of stamp duty in Australia varies between the states and territories. 

Stamp duty is calculated considering the following factors:

- Property location (state/territory)
- Property type (e.g. investment, owner-occupied/residential property, house, unit or commercial)
- Property value or sale cost (whichever is higher)
- Whether you are a first home buyer
- Whether you are a foreign buyer.

Determine how much stamp duty you could be charged with our [calculator here](https://www.lendi.com.au/home-loans/stamp-duty/calculator/). 

%%Calculate your stamp duty in seconds%%

&nbsp;
## Can you qualify for multiple first home buyer schemes at the same time?

Yes, in general you can apply and qualify for multiple first home buyer assistance schemes. However, you may not be eligible for all of the available schemes due to property price caps and other factors. 

&nbsp;
## Got a home loan question? Just ask!
We're here to help. Get free expert guidance at a time that suits you. Choose a time to chat with a [Home Loan Specialist here](https://www.lendi.com.au/book-appointment/)

*The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.*