First Home Buyer Financial Assistance
Grab every cent of financial assistance available to buy a home sooner
Introduction
As a First Home Buyer, you could be much better placed than you might imagine to afford a home.
Although homes seem to cost so much more than they did when our parents bought, interest rates are at historic lows, government assistance is greater than ever, and wages are far higher than our parents could have imagined.
The truth is; buying a home has always involved some sacrifice but it’s not impossible and First National Real Estate has put together this guide to help you understand what financial assistance is currently available to you.
Federal Government Assistance Summary
First Home Loan Deposit Scheme (First Home Guarantee)
Supporting eligible first home buyers purchase a home sooner.
- For first home buyers without a 20% deposit (subject to bank lending assessment)
- Buy a new home with 5% minimum deposit
- 35,000 places for financial year 2022/23
- Restricted to new home builds and completed stock
- Avoid paying mortgage insurance
- Government guarantees 15% difference
Regional First Home Buyer Guarantee
Supporting eligible regional first home buyers to purchase a home in a regional area. As with the above program but with a limit of 10,000 places for financial year 2022/23.
Family Home Guarantee
Supporting eligible single parents with at least one dependent child to buy a home, whether that single parent is a first home buyer or a previous home owner.
- 2% deposit required
- 5,000 places for financial year 2022/23
- First home buyers or previous homeowners
- New and existing homes
- Single parent with at least one dependent child
- Maximum purchase prices apply
First Home Super Saver Scheme
The first home super saver (FHSS) scheme allows people to save money for their first home inside their super fund. From 1 July 2017, you can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home. From 1 July 2018, you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.
- Salary sacrifice up to $15,000 per year into Super (up to a total of $50,000 across all years, from 1 July 2022)
- Taxed on withdrawal with 30% tax offset
- No income test
- Effectively allows saving for home deposit at 15% tax rate
Queensland
5% min deposit.
Purchase price capped at $700,000 (Capital City/Regional Centre) and $550,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$15,000
Purchases less than $750,000
Stamp/Transfer Duty Concessions or Waivers
First Home Concession – Save up to $15,925 on your first home valued under $550,000
First Home Vacant Land Concession – Save up to $7,175 when buying vacant land valued at under $400,000
Home Concession – Save up to $7,175 on the first $350,000 of the value of the residence (eligible buyers)
Regional Home Building Boost Grant – Receive $5,000 after the purchase or construction of a new house, unit or townhouse valued at less than $750,000 in eligible regional locations (ends 31.3.23)
- Applicable when buying or building a new house, unit or townhouse (valued at less than $750,000, including land) that you will live in.
- You must apply within one year of taking possession of the new home.
- Established homes that have undergone substantial renovation can be considered
- Must move into home within a year of completing the transaction (and live there continuously for 6 months)
- You can rent out one or more rooms in the home during your 6-month residency period, as long as this arrangement doesn’t affect your use of the home.
- Investment properties not eligible.
New South Wales
5% min deposit.
Purchase price capped at $900,000 (Capital City/Regional Centre) and $750,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$10,000 towards purchase of home valued less than $750,000, in addition to FHBAS.
Stamp/Transfer Duty Concessions or Waivers
First Home Buyers Assistance Scheme (FHBAS) – Full or partial exemption on Transfer Duty on homes valued at less than $800,000
First Home Buyer Choice (Property Tax) – Choose between paying existing up front transfer duty or an annual property tax (new or existing homes valued at up to $1.5m or vacant land on which you intend to build a home with a value up to $800,000.
Shared Equity Home Buyer Helper - Assists single parents (with dependent children), single people (50 years and over) and first home buyers who are employed as nurses, midwives, paramedics, teachers, early childhood educators and police officers are key workers with buying a home. The NSW Government will pay up to 40% of the purchase price of an eligible property, retaining it as equity for as long as you are eligible for Shared Equity or until you sell the property.
- Home’s being bought or built must be new and valued at less than $750,000
- Combined value of land and home being built cannot exceed $750,000
Victoria
5% min deposit.
Purchase price capped at $800,000 (Capital City/Regional Centre) and $650,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$10,000 when you buy or build a new home valued up to $750,000
Stamp/Transfer Duty Concessions or Waivers
First Home Buyer Duty Exemption – Dutiable value must not exceed $600,000 to be exempt. Concession on homes valued between $600,000 and $750,000.
First Home Buyer Duty Reduction - The dutiable value must be more than $130,000 but not exceed $600,000.
Principal Place of Residence Duty Concession - The dutiable value must be more than $130,000 but not exceed $550,000.
Homebuyer Fund - If you have a 5% deposit, the Victorian Government could contribute up to 25% of the purchase price in exchange for an equivalent share in the property.
- A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
- The contract price for construction when building the home, must be $750,000 or less
- The property must not have been previously sold as a place of residence, occupied as a home, or used for the provision of short-term accommodation, such as Airbnb. This means the first sale of a property will not be a new home if the person who built it lived in it, or leased it out or used it for short-term accommodation.
- A new home can be a home that is substantially renovated, or a home built to replace demolished premises. It cannot be an investment or holiday house.
Tasmania
5% min deposit.
Purchase price capped at $600,000 (Capital City/Regional Centre) and $450,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$30,000
(Transactions between 1/4/21 & 30/6/23)
Stamp/Transfer Duty Concessions or Waivers
First Home Owner Duty Concession - 50% discount on transfer duty for homes valued at less than $600,000.
- The home must be occupied as your principal place of residence for a period of at least 6 months, commencing within 12 months of completion
- 50% stamp duty discount applies to purchases of established homes under $600,000
South Australia
5% min deposit.
Purchase price capped at $600,000 (Capital City/Regional Centre) and $450,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$15,000 available on homes valued at under $575,000
Stamp/Transfer Duty Concessions or Waivers
First home owners in South Australia can’t claim any specific stamp duty concessions.
- Available to first home owners who buy a new or substantially renovated home (or block of land)
- You will only be able to claim the FHOG SA if you pay below $575,000 (including building and land)
- Must live in the home for six months (within 12 months of taking ownership)
Northern Territory
5% min deposit.
Purchase price capped at $600,000
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$10,000
Stamp/Transfer Duty Concessions or Waivers
House & Land Package Exemption - Buy a house and land package from a building contractor, sign the contract between 1/7/22 & 30/6/27, and pay no stamp duty.
HomeBuild Access - Access low deposit home loan options for new-built homes or vacant land where you will build a home.
- Homes being bought or built must be new
- HomeBuild Access limited to 2-bedroom homes with a maximum purchase price of $475,000, 3-bedroom homes with a maximum purchase price of $550,000
Western Australia
5% min deposit.
Purchase price capped at $600,000 (Capital City/Regional Centre) and $450,000 (Rest of State)
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
$10,000
Stamp/Transfer Duty Concessions or Waivers
First Home Owner Rate of Duty - If you receive the grant, or would be eligible except that you are purchasing an established home, you may be eligible for the concessional first home owner rate of duty (Pay no duty up to $430,000, $19.19 per $100 or part thereof above $430,000, $530,001+ you may be eligible for the residential rate of duty. For land, pay no duty up to $300,000. $301,001 to $400,000 - $13.01 per $100 or part thereof above $300,000, $400,001+ you may be eligible for the residential rate of duty.
- Available to first home buyers who buy or build a new residential property (or substantially renovated home)
- Must be for use as your principal place of residence
Australian Capital Territory
5% min deposit.
Purchase price capped at $700,000
Salary sacrifice up to $15,000 per financial year up to a total of $50,000 across all years.
Replaced by HBCS
Stamp/Transfer Duty Concessions or Waivers
Home Buyer Concession Scheme (HBCS) – All vacant residential land + new and established homes Stamp Duty exempt. Income thresholds apply: no dependent kids $170,000, 1 dependent kid $173,330, 2 dependent kids $176,660, 3 dependent kids $179,990, 4 dependent kids $183,320, 5+ dependent kids $186,650.
- Buyers must not have owned a property in the last 2 years
- Must live in the property continuously for 1 year (starting within 12 months of settlement or completion of construction)
- All properties are eligible (including vacant land)
- Total income of all buyers must not exceed $160,000 (or more if you have dependent children)
FAQs
Buying a home in Australia in the 1980s was very different from buying a home in Australia today. In 1988, for example, the median house price in Australia was around $70,000, whereas in 2023 the median house price is around $700,000. This means that the cost of buying a home has increased by about ten times in the last 35 years.
In 1988, interest rates were much higher than they are today. The average interest rate on a mortgage was around 18%, compared to around 2% in 2023. This means that the cost of borrowing money to buy a home was much higher in the 80s, making it more difficult for people to afford a mortgage.
A. What you can afford to spend is obviously determined by government grants, your current income and financial commitments as well as your savings and credit history.
You should carefully consider your current and future living expenses so you’ll be assured you can repay your loan and maintain the quality of lifestyle you’ll require. Once you know this, you can start talking to mortgage brokers and they will quickly give you an idea of what your buying budget will be.
A. We recommend you visit www.firstnational.com.au where you will find our answers to the most common questions about buying your first home. Don’t be shy though; if you don’t see the answer to your specific question, just click the ‘get in contact’ link under our main menu and send us your question.
Most people start their search with an image of the property they would like to buy in their mind. Frequently they have a short list of suburbs they’re interested in as well.
A. You should absolutely ask if there are any known issues with the property, such as mould, pest infestations, or structural problems. That’s just for starters.
You should also ask if there are any Material Facts that buyers would want to be aware of. Agents are required, by law, to inform you of any fact that you would reasonably want to know about before buying. This could include things like whether somebody has died in the property, whether there’s any history of illegal activity or violent crime, or whether there are any problem neighbours nearby.
A. There are two ways.
An unconditional offer is when you offer an amount to buy the house as listed (with or without drapes, fixtures, etc.) without adding or negotiating any other conditions. Ask the agent for a copy of The Contract of Sale as it outlines everything that is included and specifies anything that is not.
A. You can either turn up to the auction and bid or make an offer prior, but it needs to be strong enough that the owner doesn’t think they’ll do better on the day.
If you’re going to make a bid before auction, make sure you’re ready to sign the contract and act quickly. There may be other buyers who have indicated to the agent that they want to be kept informed of any pre-auction offers that the vendor is likely to accept. In fairness to all parties who may have spent money on their enquiries and are preparing to bid at auction, the agent is obliged to inform them if the vendor has accepted an offer prior - verbally.
A. There’s a lot of detail around who’s eligible, limits on purchase prices, places or types of properties you can or can’t buy, and grants and waivers that are specific to your state or territory.
Head straight to www.firsthome.gov.au where you can access all this additional information.
Disclaimer
While every effort has been made to assure the accuracy of this information, government financial assistance is subject to frequent changes and prospective purchasers should rely on their own inquiries. The latest information is available at www.firsthome.gov.au.