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FIRST HOME BUYERS
Buying your first home
Embarking on the journey of buying your first home is a thrilling and empowering experience, whether you're starting a new chapter in your life or simply moving out of the family home.
For first-home buyers, the deposit for their first loan can often be the biggest obstacle to overcome. This can be especially challenging for those who are young and don't have a high income. Furthermore, property prices tend to rise continuously each year, making it seem like an impossible task to purchase a home.
The State Government currently assists first-home buyers seeking to purchase their first home. The government can assist with saving for your first home deposit and also provides savings on the stamp duty payable on the purchase of the house.
First home buyer grants and schemes
First Home Owners Grant
The First Home Owner Grant is available for first-home buyers and is also beneficial for new constructions and house and land packages.
Seeking government assistance can be difficult to navigate, so it is important to speak with somebody who understands what assistance you may be eligible for.
If you are working towards buying your first home, speak to one of our lending specialists today to see how the government could help you purchase your first home.
Save on stamp duty
For first-home buyers, stamp duty can be the forgotten cost of purchasing a house. The cost of stamp duty is usually a significant amount that must not be forgotten by purchasers.
You may be eligible to reduce or eliminate the cost of paying stamp duty on the purchase. For example, a $500,000 home purchase will normally attract a stamp duty of approximately $20,000.
The government assistance available to first-home buyers varies by state. Below is a summary of the First Home Owners Grant and stamp duty relief available in NSW, Queensland and Victoria.
New South Wales
First Home Owner (New Homes) Grant
At present, the NSW government offers a $10,000 First Home Owner Grant when you buy or build your first new home. Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated. If you purchase a newly built home, the purchase price must not exceed $600,000. If you purchase vacant land and sign a building contract, the value of the land plus the building contract plus any variations combined must not exceed $750,000.
First Home Buyers Assistance Scheme
From 1 July 2023, a full exemption from transfer duty is available if you are buying a new or existing home valued up to $800,000. Homes valued over $800,000 and less than $1,000,000 may qualify for a concessional rate. There are a range of requirements to be eligible; our lending team can assist you with the scheme.
Queensland
First Home Owner Grant
At present, the Queensland Government offers a First Home Owner Grant of $15,000 when you buy or build a home from scratch. The value of the home including land must be below $750,000. In addition, the Queensland government offers a regional building boost grant giving eligible applicants an extra $5,000 after the purchase or construction of a new house, unit or townhouse in regional Queensland.
Victoria
First Home Owner Grant
At present, the Victorian government offers a First Home Owner Grant for eligible first-home buyers who could receive a $10,000 lump sum in addition to a discount on stamp duty. The new home must be valued at $750,000 or less and be a new home. There are a range of requirements to be eligible; our lending team can assist you with the scheme.
Stamp duty exemptions and concessions
There are a range of exemptions, concessions and reductions from stamp duty available to eligible first-home buyers. These include the first-home buyer duty exemption or concession, first-home buyer reduction, off-the-plan concession, pensioner concession, principal place of residence (PPR) concession, first-home owner with family exemption or concession, and young farmer's exemption or concession.
First Home Guarantee Scheme
The Australian government offers the First Home Guarantee (FHBG) as part of the Home Guarantee Scheme (HGS). This supports eligible home buyers to buy a home faster.
Under the First Home Guarantee, part of an eligible home buyer's home loan from a participating lender is guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This allows an eligible home buyer to buy a home with as little as a 5% deposit without paying Lender's Mortgage Insurance.
For the First Home Guarantee, any guarantee of a home loan is for up to a maximum of 15% of the value of the property (as assessed by the participating lender). There are price caps on each location within Australia.
To discuss your eligibility for any of the government schemes mentioned above, reach out to one of our knowledgeable lending specialists.
Frequently asked questions
I'm a first home buyer. Where do I even start?
Buying your first home can feel overwhelming, but you don't need to have everything figured out at the start. The best first step is understanding your borrowing capacity and getting pre-approval. Once you know your number, the rest of the process becomes far more manageable.
How much deposit do I need to buy my first home in Australia?
Many first home buyers don't realise they don't always need a 20% deposit. In Australia, you may be able to buy with as little as 5%, depending on your situation and lender options. There are also government schemes that may help you get into your first home sooner.
What is home loan pre-approval, and do I really need it?
Pre-approval is a lender saying, "Based on what we know, here's how much you may be able to borrow." It is not a final approval, but it gives you the clarity and confidence to search for homes you know are within reach, which changes the whole experience.
Are there any government grants for first home buyers in Australia?
Yes, and many first home buyers leave money on the table simply because they don't know what they're eligible for. Depending on where you live and your circumstances, you could access grants or stamp duty concessions that make a real difference to your budget.
What costs should I expect when buying my first home?
Your deposit is just one part of the picture. There are also costs like stamp duty (in some cases), legal fees, inspections, and lender fees. Knowing these upfront is what separates a confident buyer from a stressed one.
Can I still buy a home if I'm on a low or single income?
Absolutely. Many Australians buy their first home on a single income or modest salary. It's about understanding your borrowing capacity and building a strategy that fits your situation, not a one-size-fits-all approach.
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