First Home Buyer Grants and benefits

First Home Buyer Grants and benefits: how do they work in Australia?

If you are planning to buy a house in Australia for the first time, the two very important questions you should ask your mortgage broker are: “What first home buyer grants are currently available out there?” and “do I qualify for any?”

The Australian government offers some grants, concessions and schemes to encourage first home buyers to purchase a property. These benefits are administered under each state and territory legislation, which means it varies depending on where you intend to buy the house. 

To simplify things for you, we decided to put together some general information about the government Incentives available in 2021:

What grants are available for first home buyers in Australia?

 

First Time Home Owners Grant (FHOG)

The First Home Owner Grant (FHOG) is an incentive for buying or building a new house for the first time and living there for at least 6 months. This is a national scheme that reduces the impact of the GST on home prices. It basically helps you increase your deposit, which may improve your eligibility for a home loan.

First Home Super Saver Scheme

The FHSS scheme allows permanent residents and Australian Citizens to save up to $30,000 to buy their first house in extra voluntary contributions to their superannuation fund. This incentive is valid for the whole country. 

Stamp duty concessions 

The benefit applies to first home buyers purchasing new or existing homes. It allows them to access up to a full tax concession, depending on the property’s price and the state or territory they are buying at. 

First home loan deposit scheme

Under the FHLDS the Government guarantees 15% to the lender and allows eligible first home buyers or builders to purchase new properties with only 5% deposit, without having to pay the lender mortgage insurance (LMI). However, it is important to mention that this benefit has only 10,000 places available per financial year.

Now that you understand which grants are currently available and how they basically work, let’s see some examples of eligibility criteria by State:

First Home Buyer benefits in NSW

 

First Home Owner Grant 

New South Wales offers a $10,000 First Home Owner Grant for builders of new homes valued under $750,000 and purchases of new homes less than $600,000 in value.

Stamp duty concessions 

Properties up to $650,000 are eligible for a concession that may represent $24,740 on tax savings. The benefit can be extended for properties up to $800,000 with reduced discounts.

First Home Buyer benefits in VIC


First Home Owner Grant

In Victoria, the grant is worth $10,000 for first home buyers building or buying a new home in cities and $20,000 for regional areas, both for properties under $750,000.

Stamp duty concessions 

For properties up to $600,000, the concession will represent $31,070 on savings from tax. The benefit is also extended for properties up to $700,000 with reduced discounts. 

First Home Buyer benefits in QLD

First Home Owner Grant

From March 2021, existing or building houses up to $750,000 may be eligible for a $15,000 concession. People buying or building in regional areas might also be eligible for $5,000 as part of the regional home building grant.

Stamp duty concessions 

For properties up to $500,000, the concession will represent $8,750 on savings from tax. Properties up to $550,000 can also be part of the concession, however, with reduced discounts. 

First Home Buyer benefits in SA

First Home Owner Grant

In South Australia, first home buyers may be eligible for up to $15,000 to buy or build a new house less than $575,000 in value.

Find out which government grant is best for you

If you plan to buy a house in Australia in 2021, we will be more than happy to help you understand which of the first home buyer grants you would qualify for and assist with the application process. 

We also recommend you read our article on the First steps to buy a house in Australia to understand where to start. 

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