Government Grants

First Home Owners Grant (FHOG)

Funded and administered by the individual states and territories the FHOG is a payment to help new and young home buyers get into a new property they can live in. To receive the grant you must be buying or building a new property valued under $750,000. The payment is made to you as a grant and is separate to other exemptions such as stamp duty rebates. Your new property can be a house, townhouse, apartment or unit but must be less than 5 years old and be the first sale of the property. Established properties that have been sold previously are not eligible to receive the FHOG.

The criteria for the scheme includes but is not limited to:

Australian citizen or permanent resident aged 18 years or older
Must not have lived in an Australian property you own
Must move in within 12 months of being build and staying for a period of 6 months
Purchase price must not exceed the threshold based on your state

First Home Super Saver Scheme (FHSS)

The FHSS allows first home buyers to make up to $30000 in voluntary contributions to their super fund to save for a home, with a limit of $15000 per year subject to the contributions cap. The voluntary contributions are taxed at a lower rate compared to income tax, and by paying less tax, will help you save for your deposit sooner rather than later. Applicants are also entitled to access any earnings on their extra contributions.

The criteria for the scheme includes but is not limited to:

Must be 18 years of age or older
Must not have owned Australian property before
Have not previously had an amount released from super under this scheme

Stamp Duty Concessions

In Victoria if you are a first home buyer you may be entitled to a concessional rate of stamp duty or even an exemption from paying it altogether. First home buyers don’t have to pay stamp duty on new homes valued at less than $600,000 and are entitled to concessions to stamp duty on property valued up to $1,000,000.

First Home Loan Deposit Scheme (FHLDS)

The FHLDS is an Australian Government initiative to support eligible first home buyers purchase their first home sooner. The scheme is administered by the National House Finance and Investment Corporation (NHFIC). Under the scheme first home buyers who meet the criteria can purchase their first home with a deposit of a little as 5%. This is because the NHFIC agrees to pay up to 15% of the purchase price saving you thousands in LMI. The scheme supports 10000 guaranteed loans per financial year. This scheme can be used in conjunction with other government programs such as the FHOG. Applicants are limited to participating lenders.

The criteria for the scheme includes but not limited to:

Australian citizen who is 18 years of age or older
Must not have owned or had an interest in Australian property before
Taxable income for singles less than $125,000 or $200,000 for couples based on the previous financial year
Couples are only eligible if they are married or in a de facto relationship. Siblings or other persons not eligible for the scheme
Must intend to be owner occupiers
Purchase price must not exceed the threshold based on your state
All applicants must be first home buyers and must not have owned or had an interest in residential property
Deposit of at least 5% genuine savings

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Family Home Guarantee

The family home guarantee is also an Australian Government initiative that aims to support eligible single parents with at least one dependent child in purchasing a family home. From the 1st July 2021, 10000 Family Home Guarantees will be made available over four financial years to 30th June 2025, to eligible single parents with at least one dependent child, subject to their ability to service a loan. The scheme can be used to build a new home or purchase an existing property with a deposit of 2%, regardless of whether you are a first home buyer or have previously owned a home.

The criteria for the scheme includes but not limited to:

Australian citizen who is 18 years of age or older
Must be a single parent with a least one dependent child
Applicants must not currently own a residential home
Taxable income cannot exceed $125,000 for the previous financial year. Child support payments are not included as income.
The single parent must be the only name listed on the loan and the certificate of title
Must intend to be owner occupiers
Purchase price must not exceed the threshold based on your state
Deposit of at least 2% genuine savings

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Applications closed on the 14th April 2021.

Victorian Homebuyer Fund

The Victorian Homebuyer Fund is a shared equity scheme, meaning that the State’s financial contribution is made in exchange for a share, or proportional interest in the property. Eligible homebuyers can now receive a contribution of up to 25% towards the purchase of their property, reducing their minimum required deposit to 5% and avoiding the need to pay LMI. The State’s contribution does not attract interest however as the house price increases so will the value of the states share.

The criteria for the scheme includes but not limited to:

Australian citizen or permanent resident and 18 years or older
Gross income thresholds of $125,000 for individuals and $200,000 for joint owners
Maximum purchase price of $950,000 or less in Melbourne and Geelong and $600,000 or less in eligible regional areas.

You must not own any land or have shares in a company that owns land

As long as the Homebuyer Fund owns a portion of the property you must:

Live in the home
Maintain the property
Adequate building insurance
Get homebuyer fund approval before making renovations of more than $10,000 or refinancing
Make all payments on time such as rates
Complete an annual review to maintain your eligibility

There are times when you will have to make mandatory payments these include:

When your income exceeds the threshold limit on two consecutive reporting dates
You receive any windfall gains such as an inheritance or lottery winnings
Your gross income has increased by at least 10% at a reporting date after any repayment has been made
If you are approved by your lender to increase your home loan as described in the Participation Agreement

For more information on the Victorian Homebuyers Fund click here.

For a quick summary video of the scheme click here.

LAST UPDATED: 01/09/2021