What first home buyer incentives am I eligible for?
Each program has its own criteria and conditions, so always do plenty of research on each one before factoring them into your budget. When in doubt, you can always chat with our team for more personalised information on your own eligibility.
Here are some general criteria you'll need to meet if you're interested in any incentives. While they vary by state and territory, you'll generally need to meet these criteria below to be eligible for most.
- You must be an adult, aged 18 years and over.
- Any grants you're paid may only be put towards a home which you will live in.
You must be an Australian citizen. Permanent residents may be eligible for some programs. New Zealand citizens permanently residing in Australia who hold Special Category Visas may also be eligible for some programs. In some cases, only one applicant must meet this eligibility requirement.
First Home Guarantee (FHBG)
To help you avoid paying for LMI, there's a Government program called the First Home Guarantee (FHBG). If you can provide a minimum of 5% of your home loan value as a deposit and apply to borrow through an approved lender – such as People's Choice – the Australian Government will guarantee up to 15% of the value of the property. This doesn't mean that the Government pays for the remaining part of your deposit, they are only guaranteeing the lender that you will pay it off.
You can find more information and register by visiting our dedicated FHBG page.
Regional First Home Buyer Guarantee (RFHBG)
The Regional First Home Buyer Guarantee (RFHBG) is another guarantee that helps eligible buyers avoid paying Lenders' Mortgage Insurance (LMI). If you meet the eligibility criteria, you will be able to buy a modest home in a regional area with as little as 5% deposit, without paying LMI.
First Home Owner Grant (FHOG)
If you're on the market to buy or build your very first home, the FHOG is designed for you. Unfortunately, if you (or your co-purchaser if you have one) have owned any real estate or claimed this grant before, you won't be eligible.
Keep in mind, the grant varies depending on which state or territory you purchase in, so pay attention to the relevant section for where you live. For example, in SA there is up to $15,000 available to buy or build a new home, while in NSW this value is $10,000. Again, keep an eye on the maximum property values in your state/territory so that you don't overspend and miss out.
Stamp duty assistance
Stamp duty can be one of the largest upfront costs of purchasing any property. Luckily, there are exemptions from these taxes for first home buyers depending on which state or territory you purchase in.
Stamp duty relief in South Australia
In South Australia, first home buyers may be eligible for stamp duty relief that either completely or partially reduces the stamp duty fee.
The eligibility criteria is based on the same criteria for the First Home Owner Grant. If you meet criteria for this you will generally be eligible for stamp duty relief, but you will still need to apply for both.
First Home Buyer Assistance Scheme
In NSW, stamp duty exemptions come under the First Home Buyer Assistance Scheme (FHBAS). This scheme can potentially save you tens of thousands of dollars on the purchase of your first home. You should do your research to see if you're eligible for the FHBAS and find out how much it could potentially save you.
As an example, if you're buying your second home in NSW and it's worth exactly $650,000, you'd pay nearly $25,000 in stamp duty. However, under the FHBAS, you wouldn't pay any stamp duty. It's certainly worth reading into if you're a first-time buyer.
First Home Super Saver (FHSS)
Under the First Home Super Saver Scheme, you can make voluntary contributions of up to $15,000 per year (up to a total of $50,000) to your super fund now, then withdraw that money in the future just before you purchase your first home.
If you're interested, you can read more about how the FHSS can help you save for a home loan deposit. Otherwise, you can reach out to our team to discuss any of the grants or schemes we've talked about above. There's plenty of support available but it's best to ensure that you're applying for grants that are right for your own financial situation.