Owning your first home is an exciting milestone, but it can also be financially challenging. To support first-time buyers, the Australian government has developed various initiatives aimed at making home ownership more achievable. Here’s an overview of key federal and state-specific schemes designed to assist first home buyers, including the Home Guarantee Scheme.

Federal Schemes

First Home Owner Grant (FHOG)

Introduced on 1 July 2000, the First Home Owner Grant (FHOG) is a one-off payment to help first home buyers purchase or build a new home. While the grant amount varies between states and territories, it can provide up to $10,000 in some areas. This scheme is intended to reduce upfront costs and encourage new construction or home ownership.

Home Guarantee Scheme (HGS)

The Home Guarantee Scheme is a federal initiative designed to help first home buyers, regional buyers, and eligible single parents achieve home ownership sooner. The scheme includes:

First Home Guarantee (FHBG): Allows eligible buyers to purchase a home with as little as a 5% deposit, without paying for Lenders Mortgage Insurance (LMI). Regional First Home Buyer Guarantee (RFHBG): Supports buyers purchasing homes in regional areas under similar terms. Family Home Guarantee (FHG): Enables eligible single parents to buy with a deposit as low as 2%.

For all these programs, the government guarantees part of the loan, reducing upfront costs. Eligibility criteria include income thresholds, property price caps, and residency requirements. There are 50,000 places available annually across the programs in the Home Guarantee Scheme for the 2024–25 financial year, allocated as follows:

First Home Guarantee (FHBG): 35,000 places Regional First Home Buyer Guarantee (RFHBG): 10,000 places Family Home Guarantee (FHG): 5,000 places

This structured breakdown ensures more targeted assistance across different buyer categories. For further details or to explore your eligibility, feel free to reach out!

First Home Super Saver Scheme (FHSSS)

The First Home Super Saver Scheme (FHSSS) allows you to save for a home deposit through your superannuation fund. By taking advantage of the tax benefits associated with super, you can save more efficiently. Voluntary contributions and associated earnings can later be withdrawn to purchase your first home.

State-Specific Schemes

Stamp Duty Concessions and Exemptions

Stamp duty is often one of the most significant upfront costs when buying a property. To ease this burden, most states and territories offer stamp duty concessions or exemptions for first home buyers. For instance, in New South Wales, full exemptions apply for homes valued up to $800,000, with concessions available for properties priced between $800,000 and $1,000,000. These benefits vary by state, so it’s essential to check your local government’s guidelines for eligibility.

Need more information?

At North Rocks Mortgage Solutions, we’re here to help you navigate government initiatives like the Home GuaranteeScheme, First Home Super Saver Scheme, or state-specific grants.Call us or email us to schedule a discovery chat with Cordelia. Let’s discuss your eligibility, maximise your benefits, and create a personalised plan to make your home ownership journey as seamless as possible.Don’t miss out—take the first step toward owning your first home today!

Author:

Cordelia Jia

Founder & Finance Broker

Cordelia holds a Master of Professional Accounting and a Diploma of Finance and Mortgage Broking Management. With over a decade of experience in the financial service industry, she is a seasoned expert and a reliable partner in navigating your loan journey.

Get In Touch