Many government programs are available to assist first-time home buyers in Australia, including grants and schemes at both the federal and state levels. These programs are designed to help save, reduce the deposit needed, and lower overall costs, such as stamp duty.
Federal Programs
● First Home Guarantee (FHBG): This scheme allows eligible buyers to purchase a home with a deposit between 5% and 20%, with the government acting as guarantor for up to 15% of the property’s value. There are 35,000 places available each financial year. Income caps apply: $125,000 for individuals and $200,000 for couples. The scheme can be used for new or existing homes, house and land packages, or off-the-plan apartments.
● Regional First Home Buyer Guarantee (RFHBG): Similar to the FHBG, this program allows eligible regional home buyers to purchase a home sooner. 10,000 places are available from July 1, 2024, to June 30, 2025.
● Family Home Guarantee (FHG): This program is for single parents, who can purchase a home with as little as a 2% deposit. There are 5,000 places available between July 1, 2023, and June 30, 2024.
● First Home Super Saver Scheme (FHSS): These schemes allow first-time buyers to save money for a home deposit through their superannuation fund1314. Voluntary contributions, both before and after tax, can be made to a super fund to buy a home. Eligible individuals can withdraw up to $50,000.
● Help to Buy Scheme: Set to launch in 2024, this scheme is intended to help eligible buyers co-purchase a home with the government covering 30% of the equity for an existing home or 40% for a new one.
State Programs Most states offer a First Home Owner Grant (FHOG) for new homes, with amounts varying by state.
● For example, Victoria provides a $10,000 grant for new homes. Queensland offers $15,000 for contracts signed before November 20, 2023, or $30,000 for contracts signed after.
● Many states also offer a stamp duty waiver or concession for first-time buyers, particularly those purchasing properties below a certain value.
● Shared equity schemes are also available in various states. The government contributes to the purchase price in exchange for an equivalent share of the property.