First Home Buyer Guide - Grants And Schemes

First Home Buyer Guide – Grants And Schemes

By: Nfinity Financials0 comments

Hello and welcome back. Ahh!! Looking for a new solution to your new problem? As we realise, we have tapped into your inquisitive minds for more information about your concerns. Are you a First Home Buyer, looking for easy solutions that can help you, so you have landed on the right page for the right solution. In this blog, we will talk about first home buyer grants and schemes. Hope this blog helps you answer all your queries. 

Let’s start talking. 

Buying your first home may be both exhilarating, difficult and a little stressful. For everyone, it’s a significant step. It’s also crucial to match your finances with your beliefs at this point. Because we believe that buying a house is probably the largest purchase you will ever make.

Despite the fact that Australian real estate prices are rising (again), a few government initiatives are helping first-time homebuyers by making it simpler for them to save a deposit.

We’ve compiled a list of the most important ones, but it’s always a good idea to consult with a mortgage broker or consultant. They will know which grant you are eligible for. Also, keep in mind that some of these home-buying schemes have time constraints. The early bird receives the discount.

You’re probably wondering that we’ve introduced you to the concept of grants and schemes, but what exactly are they? And now that you’re here, we assume your broker and consultants haven’t given you enough information if they’ve informed you at all. Ops!! that’s a big miss we know. But don’t worry Nfinity Financials are there to help you. In the next session of our blog, we will talk about government programs, and you can choose the right one for you. And if you’re still confused, we’re here for you.

First Home Buyer Schemes and Grants

To assist eligible Australians in realising their dream of home ownership more quickly, the federal and state governments have put in place a wide range of programmes, incentives, and fee waivers.

Here’s an overview of everything accessible, including eligibility requirements.

The Home Guarantee Scheme(HGS)

The Housing Guarantee Scheme (HGS) is a federal government initiative that assists Australians in purchasing or building their first home.

First-time buyers can receive aid for purchasing a home and jump on the property ladder faster, with as little as a 2% deposit, divided into three categories based on eligibility.

Only those who fit the requirements and want to buy an eligible property under the price cap are eligible for each home guarantee scheme. The price cap is the same for all new home buyer schemes.

And it’s not just the one. Moving ahead you’ll find many other schemes and grants, just pick the best one that suits you. We’ll be talking about the First Home Buying Guarantee(FHBG) scheme.

First Home Buying Guarantee (FHBG)

First-home buying schemes now have the opportunity to purchase an eligible property, either new or old, with a deposit as low as 5%.  The good news, they can avoid lenders’ mortgage insurance (LMI) thanks to the expansion of the FHGB home buying scheme, which adds 35,000 new spots annually. However, the new home buyer scheme is not available for the purchase of investment properties.

To qualify for the first home guarantee, candidates need to meet the requirements listed below:

  • Either be first-time purchasers or haven’t bought a property in the previous ten years;
  • Earn less than $125,000 for individuals and $200,000 for couples;
  • Married, de facto, friend, sibling, or family groupings can all be considered types of couples;
  • 18+ age;
  • Citizens or permanent residents of Australia;
  • Have a 5-20% down payment;
  • Purchase a property within the relevant price range.

Now, anyone amongst you who is thinking about buying a home in the designated regional area won’t give you any consideration, Check the next scheme.

Regional First Home Buyer Guarantee (RFHBG)

From October 1, 2022, to June 30, 2025, the federal government will provide 10,000 first-home buyer guarantees to Australians living in regional areas. These guarantees will enable the first-time home buyer to buy their first property in a specified location with a 5% down payment.

Purchasing an investment property is not permitted with this new home buyer scheme.

To qualify for the regional first-home buyer guarantee, candidates need to meet the requirements listed below:

  • Have spent the previous 12 months residing in or close to a regional area;
  • Becoming first homebuyers or not having owned a property for the previous ten years;
  • Earn less than $200,000 for couples or less than $125,000 for singles.
  • Married, de facto, friend, sibling, or family groupings can all be considered types of couples. 
  • 18+ Age;
  • Permanent residents or Australian citizens;
  • Having a deposit of 5-20%;
  • Purchase a property within the relevant price range.

Next, on the list is Family home guarantee (FHG)

Family Home Guarantee (FHG)

The FHG is unique in that it provides house purchase aid to single parents with at least one dependent kid, regardless of whether they have previously owned a property.

Under the FHG, the National Housing Finance and Investment Corporation (NHFIC) guarantees up to 18% of a qualified house buyer’s home loan. This implies that buyers can acquire a property with as little as 2% down payment without having to pay low-income mortgage insurance (LMI). Each year, 5,000 more spots become available.

To be eligible for a family home guarantee, the applicant must consider the below-listed criteria:

  • A person who is the only legal guardian of a child or who has at least one dependent child;
  • 18+ Age;
  • Permanent residents or Australian citizens;
  • Earning less than $125, 000;
  • Without ownership of real estate either now or within the previous ten years;
  • Possess a 2-20% deposit;
  • Purchase a qualifying residence within the associated price limit.

The next scheme discusses the help-to-buy policy, which focuses on buyers with low and middle incomes.  

Help-to-buy scheme

Last year, Labour unveiled plans to help more low- and middle-income earners get on the housing ladder by purchasing a stake in their new home.

Under the “Help to Buy” scheme, which is scheduled to start in the upcoming fiscal year but has no set start date. The government would contribute up to 30% of the purchase price of existing houses and up to 40% of the cost of new construction.  

It’s important to note that although the government-owned half of the house is not subject to rent requirements, the government expects that its equity contribution will be repaid over time or if it is sold.

Eligible criteria:

  • Australian having 18+ age;
  • Make less than $90,000 (or $120,000 for a pair) annually as a single person;
  • Purchase a home for the first time and own no property, either domestically or abroad;
  • Deposit at least 2%.

Ahead are the details for the First Home Super Saver Scheme.

First Home Super Saver Scheme (FHSS)

This is yet another way of getting assistance for buying a home. Instead of needing to save that amount in a bank account, you can use voluntary payments from your superannuation as your deposit.

It is significant to remember that buyers cannot withdraw employer, government, or spouse contributions; only voluntary donations are allowed to be used for the scheme.

Are you aware that there is a maximum contribution and withdrawal amount for the FHSS scheme of $15,000 each financial year or $30,000 in total? All contributions to super will be deducted from the applicable ordinary contribution caps.

Eligibility Criteria:

  • Being the First Home Buyer, and not having any property in Australia before;
  • 18+ of age;
  • Previously not used any home-buying scheme to release money from superannuation. 

First Home Owner Grant

To help first-time homebuyers offset their GST, the government launched the First Home Owner Grant (FHOG) in 2000.

We find it challenging for you to stay up to date with the most recent changes because of the regulations governing them.  How it operates and who is eligible are always changing and unique to each state and territory.

Eligibility Criteria:

  • Being the First Home Buyer;
  • Not received any FHOG previously;
  • 18+ years;
  • Stayed in the house for a minimum 6 months after it was built;
  • Purchase a home within the local government’s price cap, which varies by state or territory and ranges from $575,000 to $750,000.

Stamp Duty Waiver

In addition to the First Home Owner Grant, certain states and territories have implemented a discount or waiver of stamp duty.

First-time homebuyers in Victoria, Queensland, Western Australia, Tasmania, and the Northern Territory can also take advantage of stamp duty exemptions and discounts.

Now that we’ve covered every facet of the first-time home buyer schemes and grants, we hope you can choose the best one for you. Perhaps you believe that this information is sufficient to make your decision, but we have more for you. To date, we have mostly discussed grants and schemes; state-specific schemes have not been addressed. Yes, you’re correct; we have more to share.   

First Home Owner Grant Across Australia

As we have discussed above we will be talking about the grants in Victoria, Queensland, Western Australia, Tasmania, and the Northern Territory. Let’s begin:

Queensland

Up to $30,000 can be awarded to qualified Queensland first-home purchasers for the purchase or construction of a new home (until June 2025). A property’s valuation cannot exceed $750,000. The following properties are qualified for the programme:

  • A brand-new home, apartment, townhome, or duplex (even one that is off the plan);
  • Newly constructed senior housing on a relative’s property;
  • A house that is relocated from one location to another (including modular or kit dwellings);
  • Extensively remodeled houses.

What is hitting your mind is all we can read:) Here is the answer to your question.

In Queensland, are first-time homebuyers free from stamp duty?

In Queensland, first-time homebuyers may qualify for a complete stamp duty exemption on properties under $500,000. Then, concessional tariffs are in effect.

New South Wales

First-time purchasers in New South Wales who meet the eligibility requirements can receive up to $10,000 towards the purchase of a new home with a maximum value of $600,000 or a new home and land package valued up to $750,000. The following properties are qualified for the programme:

  • A brand-new home, condominium, apartment, or unit;
  • Extensively remodelled houses.

Are first-time home buyers in NSW not required to pay stamp duty?

First-time purchasers in New South Wales may qualify for a stamp duty exemption on residences under $800,000 or vacant land under $350,000 under the First Home Buyers Assistance Scheme (FHBAS). Concessional rates apply over those sums; nonetheless, the threshold for homes is $1 million, and the threshold for empty properties is $450,000.

Victoria

In Victoria, eligible first-time homebuyers can get up to $10,000 towards the purchase or construction of a new house with a maximum value of $750,000. The following properties are qualified for the programme:

  • A brand-new home, condominium, apartment, or unit
  • Off-the-plan real estate
  • extensively remodelled houses.

Are First home buyers exempt from Victoria?

Indeed, on properties under $600,000, qualified first-time purchasers may qualify for a stamp duty exemption. When it comes to properties valued up to $750,000, concessional charges then apply.

Western Australia

In Western Australia, first-time homebuyers who meet the eligibility requirements can get a grant of up to $10,000 to help them build or purchase a new house in a metropolitan area of Perth worth up to $750,000. The following properties are qualified for the programme:

  • A brand-new home, apartment, townhome, or duplex (even one that is off the plan)
  • Extensively remodelled houses

Are first home buyers get stamp duty exempt in Western Australia?

Indeed, stamp duty exemptions are available to qualified first-time homebuyers in Washington for properties (including land and home) under $430,000 and for undeveloped land under $300,000.

South Australia

In South Australia, qualifying first-time homebuyers can get up to $15,000 towards the purchase or construction of a new home with a maximum value of $650,000. The following properties are eligible for the programme:

  • A brand-new home, apartment, townhome, or duplex (even one that is off the plan).

Are first home buyers get stamp duty exempt in South Australia?

In South Africa, stamp duty exemptions are available to qualified first-time homebuyers on houses under $650,000 and on unoccupied land under $400,000. After that, properties valued up to $700,000 (or $450,000 for unoccupied land) are subject to concessional rates.

Northern Territory

In the Northern Territory, qualified first-time homebuyers can get up to $10,000 towards the purchase or construction of a new house. Your property value and income have no bearing on the FHOG. The following properties are qualified for the programme:

  • A brand-new home, apartment, townhome, or duplex (even one that is off the plan)
  • A house relocated to a new location
  • Extensively remodelled houses

Are the first home buyers in the Northern Territory are exempt from stamp duty?

The home and Land Package Exemption (HLPE), which applies to home and land packages acquired before June 30, 2027, is the only stamp duty exemption in the Northern Territory (subject to limitations).

Tasmania

In Tasmania, eligible first-time homebuyers can get up to $30,000 towards the purchase or construction of a new house. The following properties are qualified for the programme:

  • A brand-new home, apartment, townhome, or duplex (even one that is off the plan)
  • Kit homes

Are the first home buyers in Tasmania are exempt from stamp duty?

In Tasmania, first-time homebuyers are not exempt from stamp duty; however, they are entitled to a 50% reduction on properties under $600,000.

Since we spoke a lot about the schemes and grants, we can sense that you have yet another question in your mind:

How many grants I can apply for?

Bingo!! We got you. You can submit applications for as many grants as you are qualified for. Finding out what grants are available for first-time homebuyers is crucial, but what matters most is whether it’s something you can afford. For instance, a person may be eligible for the First Home Owners Grant in addition to the First Home Buyer scheme.

Whether or not this is a loophole depends entirely on how each initiative’s eligibility requirements and deadlines vary. To be sure you’re acting appropriately and without placing yourself in danger, it’s best to consult with a specialised broker.

Also, you can consider:

  • When these grants are offered?
  • What each grant’s income cap is?
  • The required minimum deposit for every grant.
  • For whom the funding is intended?

Hope you’ve learned a lot about the grants and government schemes. We also know that you are looking for some more answers to your concerns like,

Q. Are there any disadvantages of government grants?

Q. How does the First Home Buyer Scheme work?

Q. How to apply for these schemes?

Q. What are the eligibility criteria?

Q. Do you have to disclose about these schemes you are using while applying home loan?

If you still wish to have answers to these questions, we believe you need professional guidance. Our team of experts and researchers is there to answer you with some additional information that we might miss here. 

  • Note: These schemes will be revised every financial year. Stay updated with our regular updates in our blogs and insights

How can Nfinity Financial help you?

As a mortgage broker firm:

  • We can help you to apply for all the grants which you are eligible for.
  • Make the process easier for you.
  • Help you get a competitive interest rate.
  • With current reports and trends, we help you to find the best property.
  • Help you through settlement and beyond.

We are genie to all your worries. Feel free to connect with our expert at 1300 GET LOAN or can fill out the contact form

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