The schemes available to help first home buyers

March 19, 2021

Buying your first home can be a daunting experience, but did you know that both the Federal and various State Governments have schemes to assist first home buyers?

The Federal Government may help guarantee your loan, so that you can borrow more without having to pay LMI (Lenders Mortgage Insurance), and the State governments may give you money, via a grant, to help pay for things when purchasing your first home.

The First Home Loan Deposit Scheme (FHLDS).

In brief, the Federal Government may guarantee part of your loan with a bank, but will not give you the money. Just like when parents might guarantee a loan using their home as extra security. This means you only need a deposit of 5% plus costs and therefore borrow 95% of the value of the home from the bank.

For more info check out the link https://www.nhfic.gov.au/what-we-do/fhlds

First Home Buyers Assistance schemes across the country:

Each of the various State Governments have first home buyers grant programs of around $20,000 to assist first home buyers get into their first home. If you are a first home buyer, over 18, an individual and not a company or trust, and your spouse or partner have never owned or co-owned residential property in Australia, then you should be entitled to a concessional rate of transfer duty or even an exemption from paying it altogether.

The purpose of the schemes is twofold; to help you own your first home and to boost economic activity. That’s why they give more support to those building a brand-new home.

The value of these new homes is capped at between $750,000 and $1,000,000 depending on which State you live in, so do read the details.

Lastly, please note that in most cases, you must occupy the home as your principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement if purchasing a home, or within 12 months from the date of completion if building a home.

Please find the latest links for the State grants below:

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