There are a number of government grants and schemes currently available to Australian home buyers.
FIRST HOME LOAN DEPOSIT SCHEME (FHLDS) SMALL DESPOSIT , NO LMI
The FHLDS allows eligible first home buyers with a small deposit (as little as 5 per cent) to get a home loan without paying Lender’s Mortgage Insurance (LMI). 10,000 places are available in the scheme, as released on the 1tst July each year.
To be eligible for the scheme, participants must:
- Be an Australian Citizen aged 18 or over
- Never have owned property in Australia
- Meet income and property price threshold requirements
- have a deposit of between 5 and 20 per cent of the property’s value in genuine savings.
You can find out more about the FHLDS here.
FIRST HOME SUPER SAVER SCHEME (FHSS) DEPOSIT FROM SUPERANNUATION
The FHSS helps first home buyers save faster with the concessional tax treatment of superannuation. From 1st July 2022, first home buyers can make voluntary super contributions of up to $50,000 into their super, then withdraw this amount to form their deposit on their first home. Only voluntary contributions can be accessed as part of this scheme.
To be eligible, participants must:
- Be an Australian citizen aged 18 or over
- Never have owned property in Australia
- have not previously had funds released from superannuation under this scheme
To find out more about the FHSS, click here.
THE FAMILY HOME GUARANTEE SCHEME (FHG) SMALL DEPOSIT WITHOUT LMI FOR SIGNLE PARENTS
The FHG supports eligible single parents with dependents and a small deposit (as little as 2 per cent) to get a home load without paying LMI to build or buy a family home. 10,000 places are available in this scheme, which are released on the 1st of July each year.
To be eligible, participants must:
- Be an Australian citizen aged 18 or over
- Be a single parent with at lease one dependent living with them
- Not currently owner a home
- Be an owner occupier (not an investor)
- Meet income and property price threshold requirements
- Have a deposit of at lease 2 per cent of the property’s value
Find out more about the FHG here.
FIRST HOMEOWNER GRANT (FHOG) ONE OFF PAYMENT FOR NEW HOMES
The FHOG is a national scheme, funded by the states and territories. Positioned as an economic stimulus tool, the FHOG changes from year to year to reflect housing affordability and, in most cases, is worth between $10,000 and $15,000.
Each state and territory has its own rules, however as a rule of thumb, to be eligible, participants must:
- Be an Australian citizen or permanent resident
- Be aged 18 or over
- Never have owned a property in Australia
- Be an owner occupier (not an investor)
- Meet property price threshold requirements
Note: Application process and eligibility criteria vary by state and territory. Find out more about the FHOG for each state here.
STAMP DUTY CONCESSIONS
Stamp duty is a tax designed to cover the costs of documents and transactions, such as property transfers. How much stamp duty you pay is determined by the property’s value and the state in which you are buying.
In certain cases, namely for first home buyers and off the plan purchases, stamp duty may be waived or discounted.
Below are a few state sections for a look at stamp duty concessions and requirements.
AUSTRALIAN CAPITAL TERRITORY (ACT)
- Home Buyers Concession Scheme (aka Stamp Duty Concession): Home buyers in the ACT wil not pay stamp duty on a home purchase, subject to eligibility criteria outlined here.
NEW SOUTH WALES (NSW)
- First Home Buyers Assistant Scheme (aka Stamp Duty Concession): Home buyers in NSW will not pay stamp uty on a home purchase, subject to eligibility criteria outlined here.
- First Home Owner Grant: First home buyers in NSW may be eligible for a one off payment of $10,000 for newly built, purchased off the plan or substantially renovated homes, subject to eligibility criteria outlined here.
QUEENSLAND (QLD)
- First Home Owner Grant: First home buyers in QLD may be eligible for a one off payment of $15,000 to buy or build a new home, subject to eligibility criteria outlined here.
- Housing Finance Loan: For people who can afford to buy or build a home but cannot obtain private finance from a bank or building society – subject to eligibility criteria outlined here.
VICTORIA (VIC)
- Stamp Duty Concession: Home buyers in VIC will not pay stamp duty on a home purchase up to $600,000, and receive a discount on purchases up to $750,000, subject to eligibility criteria outlined here.
- First Home Owner Grant: First home buyers in VIC may be eligible for a one off payment of $10,000 to build or buy a new home, subject to eligibility criteria outlined here.
Q: How to I apply for a government grant?
A: You can apply for a government scheme and grant at the same time you apply for a home loan. However, it is important to discuss your options with your bank or mortgage broker prior to submitting your application. Most lenders will apply for the gran on your behalf once your home loan has been approved and formalised.
Q: How do I apply for a stamp duty concession?
A: Your solicitor or conveyancer will handle stamp duty paperwork for you on settlement day.
Q: Can I apply for multiple government grants and schemes?
A: Yes, you can if you are eligible.
