For someone that loves to be organised and don’t like surprises, it still annoys me that I didn’t know anything about first home owner grant when I first purchased my first property. If you want to know everything not to do when you’re buying a house, make sure you read about my first property purchase in Chapter 8 of my book (Money talks: ten things I wish my parents taught me about Finances). It’s hard to beat that doozy.
But you, my smart reader, will be well-versed around your options around first home buyer grants and schemes by the end of the blog post!
Remember this is mainly covering first home owner grant (FHOG) and meant to be a guide only. Governments do introduce new requirements and new programs to help, so make sure you check your state government’s website for the latest information. Make sure you read my other blog post on Shared Equity Scheme to find out more assistance the federal government offers to help you to buy your first home.
Now let’s dive in.
What is the FHOG?
It is a national scheme that provide a one-off payment to eligible first home buyers, funded by the states and territories.
The grant isn’t given automatically so this is something that you have to apply for. The process is a little different between the states and territories. You can do it yourself, or you can talk to a good mortgage broker your lender once you have decided to buy. They can help to guide you through the process and with the application. (I know which one I would choose!)
Now let’s take a closer look at each of the states and territories.
(There are other schemes available! E.g. Federal’s First Home Guarantee scheme – first home buyers to purchase a property with 5% deposit and no Lenders Mortgage Insurance. There is no income cap, but there is a property price cap).
New South Wales
| Total sum | $10,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) – Over 18 years old – A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously – Must live in the property for a minimum of 12 continuous months – Move into the property within 12 months of settlement or completion of the build *Exception for member of the permanent forces of the Australian Defence Force |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home – Substantially renovated home |
| Property purchase caps | – Newly built home: $600,000 – Building the home: $750,000 (land + construction) |
| Other schemes available | NSW government do have other schemes available for eligible applicants: – First Home Buyers Assistance – where you can get partial or full exemption on transfer duty for homes under $1 million. – Shared Equity Home Buyer Helper – where the NSW government will pay up to – 40% of the purchase price. This is open to key workers, single people over 50 years old eligible single parents and domestic and family violence survivors/victims. |
Northern Territory
| Total sum | $10,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) – Over 18 years old A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously – Must live in the property for a minimum of 6 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home – Substantially renovated home |
| Property purchase caps | No caps! |
| Other schemes available | NT government do have other schemes available for eligible applicants: HomeBuild Access – where you can receive a low interest loan from the government up to 17.5% of the property purchase price along with some other great perks. |
Queensland
| Total sum | $15,000 or $30,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) or New Zealand citizens under Special Category visa – Over 18 years old (there might be exceptions) – A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously If you owned a property after 1st July 2000, but never lived in it, you may still be eligible – Must live in the property for a minimum of 6 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home – Substantially renovated home |
| Property purchase caps | $750,000 |
| Other schemes available | QLD government do have other schemes available for eligible applicants: First Home Concession: where you can claim concession on transfer duty for homes under $550,000. |
South Australia
| Total sum | $15,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) or New Zealand citizens under Special Category visa – Over 18 years old – A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously – Must live in the property for a minimum of 6 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home |
| Property purchase caps | No caps! |
| Other schemes available | SA government do have other schemes available for eligible applicants: Stamp duty relief – where you can have full stamp duty relief for buying and building new homes |
Tasmania
| Total sum | $30,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) – A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously – Must live in the property for a minimum of 6 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home |
| Property purchase caps | No caps! |
| Other schemes available | Tasmania government do have other schemes available for eligible applicants: – HomeBuilder Grant – where you could receive up to $25,000 to buy or build a new home (although now it’s more the documentation submission timeline you can still meet) – Transfer duty discount – where you can receive a 50% discount on transfer duty if you’re a first home buyer purchasing an established home under $600,000 |
Victoria
| Total sum | $10,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) or New Zealand citizens under Special Category visa – A private owner occupier, not buying under a company or trust Never received a FHOG in Australia previously If you owned a property after 1st July 2000, but never lived in it, you may still be eligible – Must live in the property for a minimum of 12 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home – Substantially renovated home |
| Property purchase caps | $750,000 |
| Other schemes available | VIC government do have other schemes available for eligible applicants: – Homebuyer Fund shared equity scheme – where you can pay 5% deposit and avoid Lenders Mortgage Insurance, and the Victoria government could contribute up to 25% of the property purchase price for an equivalent share of ownership, – Duty exemption or concession – where you can have a partial or full exemption on duty for homes under $750,000 In fact there’s an array of others available, such as principle place of residence concession, first-home with family concession or exemption and young farmers concession or exemption. |
Western Australia
| Total sum | $10,000 |
| Qualifying criteria for you | – Australian citizen or permanent resident (or the other applicant) – Over 18 years old (there might be exceptions) – A private owner occupier, not buying under a company or trust – Never received a FHOG in Australia previously – Must live in the property for a minimum of 6 continuous months – Move into the property within 12 months of settlement or completion of the build |
| Qualifying criteria for the property | – Brand new home (i.e never been lived in) – Constructing the home – Substantially renovated home |
| Property purchase caps | – $750,000 south of the 26th parallel of South latitude – $1,000,000 north of the 26th parallel of South latitude In WA, the 26th parallel starts at Shark Bay. Did you know the 26th parallel in Australia is the line that divides Australia from west to east? |
| Other schemes available | WA government do have other schemes available for eligible applicants: – Home Buyers Assistance Account – where you can receive up to $2000 for to help to cover costs to purchase a home – The First Home Owner Rate – where you can have a lower rate of duty for first-time home owners. |
Australian Capital Territory
The ACT government doesn’t offer much in the ways of FHOG nowadays, but there is the Home Buyer Concession scheme. For eligible applicants, there may be full exemption of duty. For the latest information, check out ACT Government’s website.
Frequently asked questions
Does it count towards my deposit?
No. Think of it like a boost, to be used on top of your deposit. Unless you can find something for $50,000 in today’s market.
When does the payment get to me?
It doesn’t quite land in your bank account. Once again, it’s a little different between the states and territories. If you are buying a home that already built, then it is usually paid during settlement. If you are building your first home, then it’s usually paid when the foundations are laid. The fund usually goes to the lender and used with the deposit for the home loan or build.
What does substantially renovated mean?
Each state have their definition slightly different, but on the whole it refers to:
- Nearly the entire home have been reconstructed or rebuilt
- This is the first sale after renovation was completed
- The home has remained vacant since renovations were finished
Are there other grants available?
Why yes! If you have found this article useful, then make sure you read my blog post on Shared Equity Scheme.
If you’re looking to buy a home, don’t forget to check out the free property buying calculator at https://shecanfinance.com/resources/