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first home buyer

If you’re a first home buyer, you’ll likely benefit from several grants launched by federal and state governments to help young Australians break into the market. Here’s what you need to know…

National Initiatives

The First home loan deposit scheme (FHLDS) supports eligible first home buyers to build or purchase a new home sooner. There are now 27 participating lenders across Australia offering places under the FHLDS. HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $15,000 to build a new home or substantially renovate an existing home. The First home super save scheme (FHSS) allows first home buyers to save money for their first home inside their super fund. This helps first home buyers save faster with the concessional tax treatment of superannuation.

First Home Owner Grants

Most states in Australia provide a First Home Owner Grant to encourage young Australians to enter the property market. Each state and territory has different eligibility criteria:

  • In New South Wales, the First Home Owner Grant includes a $10K grant to support first home buyers who intend to purchase or build a new home. To be eligible for this grant, the purchase price for a new home must be below $600K. For land and home, the value must be no more than $750K.
  • Those who intend to buy or build a new home in Northern Territory can now apply for a $10,000 First homeowner grant. The income and price of the home won’t impact the grant. A Home Buyer Initiative is also available to low- to middle-income earners so that they can purchase new residential property or build on vacant land. Eligibility will depend on annual household income, which must not exceed $80K for a single or $127K for a household of six or more.
  • The First Home Owner Grant in Queensland includes $15K to contribute to buying or building a new house, unit, or townhouse, however, the value must be less than $750K.
  • In South Australia, the First Home Owner Grant includes $15K for the purchase or construction of a new residential home valued at $575K or less. A HomeBuilder grant of $25K is also available for first home buyers who intend to build a new home, renovate an existing home or buy an off-the-plan/new home. 
  • In Tasmania, a $20K grant is available for those who purchase or build a new home between 1 July 2016 and 30 June 2022. 
  • In Victoria, a $10K grant is available for buyers intending to buy or build their first new home. Buyers in regional Victoria are eligible to receive a $20K grant until the end of financial year 20/21. This grant includes houses, townhouses, apartments or units with a maximum value of $750K.
  • The First Home Owner Grant in Western Australia includes a $10K grant for those looking to purchase new residential dwellings or homes with renovations.

First home concessions and exceptions

  • Many buyers in the Australian Capital Territory are now eligible to be exempted from paying stamp duty. However, they must not exceed the household income threshold of $160K (for buyers with no dependent children) to $176K for buyers with five or more dependent children.
  • In New South Wales a First Home Buyer Assistance Scheme provides first home buyers with a concessional rate of transfer (stamp) duty or a total exemption. In comparison to the First Home Owner Grant, this applies to buyers of existing homes, new homes and vacant land on which they intend to build a home. The thresholds are $800,000 for new homes, $650,000 for existing homes and $400,000 for vacant land.
  • In the Northern Territory, the Territory home owner discount includes residents buying an established home, a new home or land to build a new home. The NT government offers a discount of up to $18K on stamp duty if the purchased home is the applicant’s principal place of residence.
  • First home buyers in Queensland who intend to buy or build a residence or vacant land may also be able to claim several first home concessions. Click here to learn more.
  • In Tasmania, first home buyer duty concession provides a 50% discount on property transfer duty for first home buyers of established homes. The value must be $400K or less.
  • First homes buyers in Victoria may be eligible for the First home buyer duty exemption. This applies to both new and established homes, as well as vacant land, however, the home must be valued at no more than $600K for exemption and between $600K to $750K to be eligible for concession.

Home loan assistance & support

  • In the Northern Territory, HomeBuild access allows residents access to low deposit home loans for newly built homes as well as vacant land to build a new home. The purchase value must be less than $475K for two-bedroom properties and $550K for properties with three or more bedrooms.
  • A Queensland Housing Finance Loan is also available to those with good credit and savings history with a combines household income under $141K. This loan assists those Queenslanders who can afford to buy or build a home but were not successful in securing finance from the bank. The loan can be used to buy an established house, unit, townhouse or duplex, or to build a house.
  • Keystart is a private organisation in partnership with the Western Australian government. Keystart offers lower entry costs and other flexible loan terms for first home buyers.

Need a home loan?

If you’re keen to make the most of these first home buyer grants and initiatives, APS Home Loans will help you take the hassle out of getting a home loan. We’ll make the application process as uncomplicated as possible; you will only deal with one person who is an experienced mortgage lender who will take your application and process and approve it right through to settlement. You’ll be in very good hands. Click here to learn more.

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