First Home Buyer Grants in Australia: Everything You Need To Know

First home buyer grants is the Australian government’s initiative to provide financial support to first-time Australian home buyers.

It helps them navigate the challenges of home ownership in Australia, where the dream of owning a home is slowly getting far unreachable. 

With the rising property rates, high deposit requirements, and interest, owning a home is now more like a nightmare than just a dream for Aussies.

Especially since you need a higher loan amount these days, you also increase the chance of falling into mortgage stress.

So, the first home buyer grant act is one way to make your dream of owning your first home more affordable.

What Are First Home Buyer Grants?

The Australian government introduced the First Home Owner Grant (FHOG) scheme on July 1, 2000 to offset the GST effects on home ownership.

With this scheme, the states and territories started funding a one-off grant to eligible first home owners in Australia. 

In effect, it was meant to help level the playing field by decreasing the financial burden on these home buyers in a market that was expected to see rising prices due to the GST.

It’s worth noting that although the FHOG is a national scheme, it is funded and administered by each state or territory under its own legislation. 

This means that while the core idea is uniform, the eligibility criteria, application processes, and grant amounts can vary between jurisdictions. 

First Home Owners Grant Act: Eligibility Criteria

Since FHOG is funded and administered by each Australian state or territory, the eligibility requirements vary.

However, here’s a list of the general eligibility requirements that are commonly used by each state or territory:

• You and your partner or spouse must not have owned a property before.

• The grant is a one-off amount and you can only receive it once.

• You must be an Australian citizen or permanent resident.

• You must be an individual person, and not a company or a trust.

• You must live in the house for at least 6 months once it’s built/bought.

• You must be an adult aged at least 18.

• The house must be either new or substantially renovated. It either must not have been previously sold or occupied, or most of it should be renovated (much more than a room or a kitchen, for instance.)

To get the complete list of eligibility requirements for FHOG in your state or territory, kindly visit the respective official government website:

• Australian Capital Territory

• New South Wales

• Northern Territory

• Queensland

• South Australia

• Tasmania

• Victoria

• Western Australia

First Home Buyer Grants: How Much Can You Get?

The FHOG grant amount varies by state or territory, but it usually falls around the range of $10,000. Here’s the complete list of grant amounts provided by each state/territory:

• Australian Capital Territory: $7,000–$12,500.

• New South Wales: $10,000.

• Northern Territory: $10,000–$50,000.

• Queensland: $15,000 or $30,000.

• South Australia: Up to $15,000.

• Tasmania: $10,000–$30,000.

• Victoria: $10,000.

• Western Australia: Up to $10,000.

The first home buyer grant amount you receive usually depends on your property value and what is reasonably required to help you financially.

Kindly make sure to check the official state government’s website for a more accurate estimation of the grant amount you may qualify for.

Applying for Your First Home Buyer Grant

You can apply for the first home buyer grant by visiting the official government FHOG page of your state or territory listed above.

You may also ask your mortgage broker or lender to file it for you.

Either way, documentation is required to process your application, so make sure you have it handy.

Generally, you (the applicant) and your spouse/partner will need to provide a supporting copy of your proof of identity. It can be either:

• A copy of your Australian birth certificate.

• A copy of your Australian passport.

• A copy of your Australian citizenship certificate.

This is just your proof of identity. Depending on your state/territory, you will need additional documents to process your application. Kindly refer to the official government FHOG page provided above in this article.

When Is the First Home Buyer Grant Paid?

Each state or territory has its own rules and timelines for payout. However, this is generally when you can expect the grant:

• Established home: Payment on settlement.

• Contract to build: Paid to the builder with the first progress payment.

• New home: Payment on settlement.

• Purchase off the plan: Payment on settlement.

Again, please make sure to refer to the official government FHOG page provided above for a more accurate representation of the timeline.

Integrating First Home Buyer Grants With Other Schemes

To get the most benefits when buying a home, you can combine your first home buyer grant with other home buying assistance schemes available in Australia.

You should check what you may be eligible for on your respective state or territory’s official government page. However, these are the assistance schemes you could be eligible for.

Stamp Duty Exemptions

One of the upfront costs involved in buying a home is stamp duty. It is a tax paid to the government of Australia when buying your new home.

Stamp duty is one of the significant upfront costs here. What you need to pay depends on your state or territory:

• Australian Capital Territory

• New South Wales

• Northern Territory

• Queensland

• South Australia

• Tasmania

• Victoria

• Western Australia

However, some states offer exemptions on this when the property you’re buying is under a certain amount. Kindly check your state’s official government page, or consult your mortgage broker or lender for accurate representations.

Home Guarantee Scheme (HGS)

Home Guarantee Scheme (HGS) is one of the Australian government’s initiatives to help eligible home buyers purchase a home sooner. There are three types of guarantees in this scheme:

• First Home Buyer Guarantee (FHBG): Helps eligible home buyers get a home with a deposit as low as 5%.

• Regional First Home Buyer Guarantee (RFHBG): Helps eligible home buyers buy a home in a regional area, with a deposit as low as 5%.

• Family Home Guarantee (FHG): Helps eligible single parents and eligible single legal guardians of at least one dependent to buy a home with a deposit as low as 2%.

You may use Housing Australia’s eligibility calculator to easily identify which of these three guarantees you may be eligible for.

Conclusion

That sums up everything you need to know about the first home buyer grants in Australia.

If you’re looking for a new home loan or refinancing options, we can help you find the right solution.

We’re a licensed mortgage broker in Australia with 30+ top lending partners. Discover personalised home loan solutions that benefit your unique needs and goals with our unbiased mortgage guidance from start to finish.

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Keep in mind that the information provided in this article is general in nature and not intended as financial or legal advice. 

We highly suggest that you speak to a state revenue office, a licensed mortgage broker, or a qualified financial advisor to navigate loan products and grants in a way that fits your unique circumstances.

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