Incentives
As a first-time buyer, the process of purchasing your first home can seem overwhelming. Luckily, there are several government grants and schemes that can help make this process easier and more affordable. Here's a guide to the main options available.
Note: First Home Buyer incentives are generally applied for through your mortgage broker. Get in touch with one of My First Home’s coaches today to see if you’re eligible!
First Home Owner Grant
The First Home Owner Grant (FHOG) is a one-off payment designed to help first home buyers get started. While the basic criteria are similar across all states and territories, the amount and property requirements can vary depending on where you live.
Key Eligibility Criteria:
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Must be an Australian citizen or permanent resident.
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Must be at least 18 years old.
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Must move into the home within 12 months and live there for at least 6-12 months.
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Must be purchasing a new or substantially renovated home (depending on the state or territory).
The amount of the FHOG differs by state, and some areas may have property price limits. Check your local guidelines to see how much you could be eligible for and whether your property qualifies.
Stamp Duty Exemptions
Stamp duty, also known as transfer duty, is a tax payable when you buy a property. However, as a first home buyer, you may be eligible for stamp duty exemptions or concessions, which can significantly reduce or eliminate this cost.
Common Eligibility Requirements:
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Must be an Australian citizen or permanent resident.
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Must be at least 18 years old.
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Must use the property as your main residence within 12 months of purchase.
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The property must be below a certain price threshold, which varies by state.
Stamp duty exemptions and concessions can save you thousands, so it's important to check with your state or territory’s regulations.
Home Guarantee Scheme
The Home Guarantee Scheme offers several government-backed initiatives to help first-time buyers and specific groups enter the property market with a lower deposit.
Main Programs Under the Scheme:
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First Home Guarantee (FHBG): Allows first home buyers to purchase a property with just a 5% deposit, with the government guaranteeing up to 15% of the loan, helping you avoid paying Lenders Mortgage Insurance (LMI).
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Family Home Guarantee (FHG): Available to single parents with dependents, allowing them to buy a home with just a 2% deposit.
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Regional Home Guarantee (RHG): Designed for buyers looking to purchase in regional areas, this scheme also allows eligible buyers to purchase a home with a 5% deposit.
These schemes make it possible to buy your first home with a smaller deposit, and they come with specific eligibility requirements, including property price caps and income limits.
First Home Super Saver Scheme*
The First Home Super Saver (FHSS) Scheme allows you to use your superannuation to help save for your first home. By making voluntary contributions to your super fund, you can benefit from lower tax rates and faster savings.
How it Works:
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You can make voluntary contributions up to $15,000 per financial year (up to a total of $50,000).
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When you're ready to buy your first home, you can withdraw these contributions plus any associated earnings.
The FHSS Scheme helps first home buyers boost their savings by taking advantage of the tax benefits associated with superannuation.
*This content has been prepared by MyFirstLoan.au Pty Ltd and entities related to it (Company).
This content is provided for general information purposes only.
Information provided to the Company by third parties has not been independently verified by the Company.
The content may contain certain projections, estimates and statements as to future performance. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. To the extent they are based on historical information, they should not be relied upon as an accurate prediction of future performance.
It is critical that you understand that, having regard to its limited purpose to provide you with general information, no part of this content constitutes any advice (financial or otherwise), recommendation or representation to you as to any decision which you should make. You should not use any part of this content to form the basis of any investment decision to be made by you.
Before making any investment decision, you should take independent advice from a professional adviser which takes into account your individual needs and circumstances.
All information, opinions and estimates contained in this presentation are subject to change without notice. The Company disclaims to the greatest extent possible all liability whatsoever for any loss howsoever arising, directly or indirectly, from this presentation or its contents.
These grants and schemes offer a variety of ways to make buying your first home more affordable and achievable.
For more detailed information or to see if you qualify, reach out to My First Loan.au today!
FAQs
Got questions? We’ve got answers. Take a look at our Frequently Asked Questions to get quick and clear information on everything you need to know about the home loan process.
A family guarantee involves a family member, usually a parent, offering their property as additional security for your loan. This can help you secure a loan with a smaller deposit, avoid Lenders Mortgage Insurance (LMI) and enter the property market sooner.
You can exit a family guarantee by refinancing your home loan once you’ve built up enough equity, typically when your loan-to-value ratio (LVR) drops below 80%. This releases your guarantor from their obligations.
Borrowing power is the maximum amount a lender will loan you based on your financial situation. You can increase it by reducing debts, saving a larger deposit, improving your credit score and increasing your income.
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Your Guide to Affordable Homeownership
1
Meet Your Coach
Let us pair you with a dedicated home loan coach. They’ll provide guidance to help you through the home buying process.
2
Create a Savings Plan
Your coach will estimate your borrowing power and provide budgeting advice, made easy with our MFL Success Tracker app, so you can save confidently for your new home.
3
Get Your Loan
When you're ready, apply for and secure the loan you need to purchase your first home.
