A Fresh Look at Government Assistance for First Home Buyers

With Australia’s housing affordability challenges continuing into 2025, the government has launched a range of initiatives to support first-time buyers.

Some of these initiatives reduce the upfront deposit needed, while others offer exemptions or concessions on transfer (stamp) duty.

Navigating these programs can be complex, and eligibility rules and program availability can change. It’s always wise to seek advice from your solicitor or conveyancer before proceeding.

Below is a summary of the key programs currently available:

Home Guarantee Scheme (HGS)

The Home Guarantee Scheme helps eligible buyers secure a home loan sooner without needing the standard 20% deposit or paying Lenders Mortgage Insurance (LMI).The scheme includes three key components:

– First Home Guarantee (FHBG): Allows eligible first home buyers to purchase with as little as a 5% deposit.
– Regional First Home Buyer Guarantee (RFHBG): Tailored for buyers in regional areas, also with a 5% deposit minimum.
– Family Home Guarantee (FHG): Designed for single parents or single legal guardians with at least one dependent, enabling home purchase with a deposit as low as 2%.

Learn more at housing.gov.au.

First Home Guarantee (FHBG)

The First Home Guarantee supports first-time buyers by backing part of their home loan, allowing them to secure a mortgage with just a 5% deposit.

Eligibility:

– Must be an Australian citizen or permanent resident.
– Must be 18 years or older.
– Income cap: $125,000 for individuals; $200,000 for couples.
– Must live in the purchased property.
– Must be a first home buyer, or not have owned property in the past 10 years.
– Sydney buyers must choose properties priced under $900,000 to qualify.

Family Home Guarantee (FHG)

The Family Home Guarantee specifically assists single parents or single legal guardians.

Eligibility:

– Single applicant with at least one dependent.
– Australian citizen or permanent resident.
– Annual income below $125,000.
– Must plan to occupy the property.

Applicants need a minimum 2% deposit, but may require slightly more depending on the lender’s conditions.

First Home Buyers Assistance Scheme (FHBAS)

In NSW, the First Home Buyers Assistance Scheme offers full or partial exemptions from transfer (stamp) duty on eligible homes.

Current thresholds:

– Full exemption: Properties valued up to $800,000.
– Concessional rates: Properties valued between $800,000 and $1 million.

Eligibility:

– First home purchase.
– Must live in the home for at least 12 months after settlement.
– Must be at least 18 years old and an Australian citizen or permanent resident.

For details, visit Revenue NSW.

First Home Owner (New Home) Grant

First-time buyers in NSW can also apply for a $10,000 grant to assist with buying a brand-new home or a substantially renovated property.

Conditions:

– Home must be newly constructed or significantly renovated, and not previously occupied.
– Price cap of $600,000 for new homes (including apartments and townhouses).

Eligibility:

– Must be purchasing your first home.
– Must be at least 18 years old and a citizen or permanent resident.
– Must intend to live in the home for at least 12 months.

Find more information on the Revenue NSW website.

In Summary

The available programs offer excellent opportunities to reduce your upfront costs and fast-track your homeownership journey, rules and availability can change. Always verify the latest eligibility details with official sources and consult a legal or financial professional before proceeding.

To view apartments that qualify for the above First Home Buyer schemes, visit masonandmain.com.au