5 Schemes to Help You Buy Your First Home
Government support that can make getting into the market a little easier.
Key points
- A number of federal and state government schemes can reduce the deposit, stamp duty or upfront costs of buying your first home.
- Some schemes, like the 5% Deposit Scheme and Help to Buy, reduce how much deposit you need. Others, like First Home Owner Grants and stamp duty concessions, reduce upfront costs directly.
- Eligibility varies by scheme, state and property price, so it's worth checking the details, or speaking with your adviser, before you apply.
Buying your first home can be exciting and frustrating and slightly terrifying, all at the same time. It's a big step for anyone, and given your home is likely the biggest purchase you'll ever make, it's a key time to make sure your finances are working in your favour.
Even though Australian property prices are on the rise (again), there are a few government schemes for first home buyers that are making it easier to get a deposit together and jump into the market.
We've rounded up some of the major ones here, but it's always worth chatting to your adviser. They'll know which programs you qualify for. Also, just a heads up: some of these home-buying schemes are time-sensitive, so it pays to check current eligibility windows and price caps before you apply.
1. The Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme is an initiative to support eligible first home buyers to purchase a home sooner. The Scheme is for aspiring home buyers just like you, first home buyers with a minimum 5% deposit, or single parents or legal guardians with a minimum 2% deposit.
No income caps, no waitlists and no Lenders Mortgage Insurance reduce your upfront costs and get you on the path to home ownership sooner. Whether you're eyeing a cosy apartment, family house or building on vacant land, the Australian Government can help you into a home that suits your lifestyle, location and budget, right across the country. Read the full details about the Australian Government 5% Deposit Scheme and eligibility criteria before you apply.
And while we're talking about deposits, in the lead up to buying your home, it's important to plan, budget and save. After all, the more you save, the less you'll need to borrow.
2. Australian Government Help to Buy Scheme
The Help to Buy Scheme is an initiative designed to support more Australians to buy a home. Whether you're a first-time buyer or someone returning to home ownership, Help to Buy offers support to secure a place to call home.
Help to Buy is an equity investment by the Government to support your purchase, secured by an interest-free loan, so that you retain sole ownership of the property title. Eligible buyers can purchase or build a home with as little as a 2% deposit, and benefit from a contribution from the Government of up to 40% for new homes or 30% for existing homes.
You own the home but share some of the value with the Australian Government. The Government's contribution allows you to consider properties beyond what your borrowing capacity and deposit alone would support, allowing you to access homes that meet your needs sooner, with greater financial confidence.
Ask your adviser which Participating Lenders currently offer home loans under Help to Buy.
3. First Home Owner Grant
Most state governments have their own First Home Owner Grant systems. These have been around for a while. In Victoria, for instance, you can get $10,000 when you buy or build a brand new home. Queensland has a similar program for $15,000 or $30,000. Most First Home Owner Grants have purchase price limits, your home generally needs to be under $750,000, but it varies state by state. Check your relevant government website for all the details.
4. First Home Super Saver Scheme
This scheme has been kicking around for a couple of years, and helps you save money for your first home within your super fund. Since 2017, the ATO has allowed you to make voluntary before- and after-tax contributions to your super, for the sole purpose of saving for a new home. Then, to access funds for a deposit, you can apply to release those contributions from your account.
The current amount eligible individuals can withdraw is $50,000.
5. Stamp Duty Waiver
In Victoria, you can apply to have your stamp duty waived or receive a concession if you're a first home buyer, as long as your house is under a certain price threshold. The first home buyer stamp duty exemption or concession may be available if:
- Your home is purchased for under $600k to receive the first home buyer duty exemption
- Your home is purchased for between $600,001 and $750,000 to receive the first home buyer duty concession
Final thoughts
There you have it: five government schemes and grants to help first home buyers purchase a home. Buying a home is a big investment, probably one of the biggest you'll ever make. We're here to help you think through what's involved, from planning to financing to purchasing. Get in touch with our team to find out more.
This content is general in nature and does not constitute financial advice. Stamp duty and other costs may be payable, and terms and conditions, eligibility and lending criteria apply, along with restrictions and obligations imposed after purchase. Please speak to your adviser to understand how these schemes apply to your circumstances.
