Amanda Smith
Georgia Rose
Mary Flory
If you’re ready to buy your first house but money is tight, there are a range of government programs that can help.
Here is a selection of national and regional first home buyer schemes and grants available in Australia.
National schemes and grants for first home buyers
The following programs are available across the country. However, specific terms and conditions may differ among states.
First Home Guarantee Scheme (previously known as the First Home Loan Deposit Scheme)
Best for: People with small deposits
Housing Australia, which used to be known as the National Housing Finance and Investment Corporation (NHFIC), guarantees up to 15% of a deposit with a participating lender. This means you only need to contribute 5% of the property’s value as a deposit to avoid paying lenders mortgage insurance (LMI).
The First Home Guarantee isn’t a cash payment. The government is acting as guarantor for the 15%.
There are 35,000 spots available for this scheme between 1 July 2023 to 30 June 2024 .
Eligibility
You can apply for this program if you’re buying an existing property, a house and land package, land with a separate contract to build, or an off-the-plan apartment or townhouse.
Check the property price cap for your state through the Housing Australia website. Caps can range from $400,000 to $900,000 depending on your area. .
To be eligible, you must:
- Be an Australian citizen or permanent resident.
- Be at least 18 years old.
- Apply as an individual or couple, not as a company or trust.
- Earn no more than $125,000 as an individual or $200,000 as a couple (confirmed by the ATO).
- Plan to live in the property.
- Not have owned a property in Australia in the past 10 years.
Family Home Guarantee (FHG)
Best for: Single parents
If you’re a single parent or guardian, the Family Home Guarantee (FHG) allows you to put down as little as 2% on a home, through participating lenders.
Eligibility
You can be a first-time home buyer, or have owned previous properties. However, you cannot currently own a second property (or intend to buy a second property upon settlement).
Arranged through Housing Australia, the scheme is available to 5,000 people between 1 July 2023 and 30 June 2024.
To be eligible, you must:
- Apply as an individual.
- Be a single parent or guardian with at least one dependent.
- Be an Australian citizen or permanent resident
- Be at least 18 years old.
- Have an income $125,000 per year or less.
- Not own additional properties, or intend to buy additional properties.
Property price caps apply. Check the Housing Australia website for caps in your state.
Regional First Home Buyer Support Scheme (RFHBG)
Best for: People in regional areas
This initiative supports aspiring homeowners in regional areas across Australia. Like the First Home Guarantee, approved applicants can pay a 5% deposit without paying LMI. The maximum guarantee is 15% of the property value through a participating lender.
Eligibility
There are 10,000 spots available from 1 July 2023 to 30 June 2023.
To be eligible, you must:
- Be an Australian citizen or permanent resident.
- Be at least 18 years old.
- Apply as an individual or couple.
- Earn no more than $125,000 as an individual or $200,000 as a couple (confirmed by the ATO).
- Live in the home.
- Have not purchased a home in the past 10 years. .
- Have lived in the regional area for at least 12 months from the home loan agreement date.
Apply through a participating lender or an authorised mortgage broker.
First Home Super Saver Scheme (FHSS)
Best for: Tax-savvy buyers
The FHSS allows individuals to save for a home deposit by leveraging their super fund. You can make voluntary contributions (pre-tax and post-tax) into your super fund and then withdraw up to $50,000 for a home deposit.
Under the FHSS, the maximum voluntary contributions you can withdraw in a financial year is $15,000 – with a total of $50,000 in contributions for the entire scheme.
It can take 15 to 20 days to receive the funds. If you have an outstanding debt with the ATO or another Commonwealth agency, the withdrawal amount may be reduced to repay the debt.
Eligibility
Australian citizenship or residency if not required to use the First Home Super Saver Scheme.
To be eligible, you must:
- Be at least 18 years old.
- Have never owned a property before or made an FHSS release request.
- Live in the property for at least six months within the first year of ownership.
Help to Buy Scheme
The Help to Buy Scheme is set to launch in 2024. It is designed for eligible buyers to co-purchase a home with the government. Under this scheme, the government guarantees 30% of the equity for an existing home or 40% for a new home.
First Home Owner Grant (FHOG)
Best for: First-time buyers of new homes
Depending on where you live, you can receive up to $30,000 to help build or buy a new home. The FHOG is available across Australia except the ACT. The grant differs slightly from state-to-state, so check your state’s website for more detailed information.
Eligible applicants can receive up to:
- Queensland: $15,000.
- Victoria: $10,000.
- South Australia: $15,000.
- New South Wales: $10,000.
- Western Australia: $10,000.
- Tasmania: $30,000.
- Northern Territory: $10,000.
The FHOG is tax-free, meaning you don’t have to declare it as taxable income on your annual lodgement.
First home buyer schemes by state
- First Home Owner Grant (FHOG): Up to $10,000 for eligible first-time buyers to help purchase or build a new home.
- First Home Buyers Assistance Scheme: Full or partial exemption on transfer duty for first homes valued at less than $1 million.
- Shared Equity Home Buyer Helper: Open to nurses, midwives, paramedics, teachers, early childhood educators and police officers, this program pays up to 40% of a home’s purchase price for first-time buyers.
- First Home Owner Grant (FHOG): Up to $10,000 for eligible first-time buyers to help purchase or build a new home.
- HomeBuild Access: A low-interest government loan of up to 17.5% of the purchase price for new builds or new homes.
- First Home Owner Grant (FHOG): Up to $15,000 for eligible first-time buyers to help purchase or build a new home.
- First Home Concession: Reduces the transfer duty levied on first homes. The property’s value dictates how much of a reduction you will receive.
- First Home Owner Grant (FHOG): Up to $15,000 for eligible first-time buyers to help purchase or build a new home.
- Stamp duty relief: Full stamp duty relief on homes valued at $650,000 or less. Partial relief for homes valued between $650,001 and $700,000.
- First Home Owner Grant (FHOG): Up to $30,000 for eligible first-time buyers to help purchase or build a new home.
- Commonwealth HomeBuilder Grant: Up to $25,000 to build or buy a new home.
- Transfer duty discount: 50% discount on transfer duty for first-time buyers.
- First Home Owner Grant (FHOG): Up to $10,000 for eligible first-time buyers to help purchase or build a new home.
- Victorian Homebuyer Fund shared equity scheme: The government pays up to 25% of the home’s purchase price in exchange for equity, allowing you to pay just 5%, and avoid LMI.
- Stamp duty reduction: Eligible first-time buyers can receive a reduction or removal of stamp duty based on the value of the home.
- First Home Owner Grant (FHOG): Up to $10,000 for eligible first-time buyers to help purchase or build a new home.
- Home Buyers Assistance Account (HBAA): Up to $2,000 for eligible first-time buyers to help cover the costs of purchasing a house.
- The first home owner rate (FHOR): Reduced duty on homes or vacant land for first-time buyers.
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