First Home Buyer Grants, Concessions and Schemes in Australia

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Buying your first home in Australia can involve more than saving a deposit and comparing home loans. Depending on where you buy, what type of property you choose and your personal circumstances, you may be able to access government assistance that reduces some upfront costs or changes the deposit you need.

First home buyer assistance is not a single national benefit. It is a mix of state, territory and Commonwealth programs, each with its own purpose, eligibility rules, application process and timing requirements. This guide explains the main types of assistance first home buyers commonly research, including the First Home Owner Grant, stamp duty concessions, the Home Guarantee Scheme, the First Home Super Saver Scheme and shared equity programs.

This is general information only. Scheme rules, property price caps, income tests, residency requirements and availability can change. Always check the current rules with the relevant government body, state or territory revenue office, participating lender or qualified professional before relying on a program in your budget.

First home buyer assistance in Australia at a glance

Government assistance usually supports first home buyers in one of four ways: reducing upfront transaction costs, supplementing savings, helping eligible buyers purchase with a smaller deposit, or reducing the size of the loan needed. These benefits are not interchangeable, and being eligible for one does not automatically mean you will qualify for another.

First Home Owner Grant: what it is and how it usually works

The First Home Owner Grant, often called the FHOG, is one of the better-known forms of first home buyer assistance in Australia. It is generally administered by state and territory governments rather than being a single uniform national payment.

The FHOG is designed to help eligible first home buyers purchase or build their first home. In many jurisdictions, the grant is focused on new homes, newly built properties or substantially renovated homes, rather than all established properties. The exact amount, property value thresholds and conditions vary by state or territory.

Common eligibility factors may include:

• whether you and any co-purchaser have previously owned residential property in Australia;
• whether at least one applicant is an Australian citizen or permanent resident, depending on the jurisdiction;
• whether the property is new, newly built, off the plan, substantially renovated or owner-built;
• whether the property value is within the applicable cap;
• whether you will live in the property as your principal place of residence for the required period;
• whether you apply within the required timeframe and provide the required documents.

The FHOG can be useful, but it should not be treated as guaranteed funds until your eligibility and application timing have been confirmed. If your purchase depends on receiving the grant, allow for the possibility of delays, documentation requests or changes in eligibility.

Stamp duty concessions and exemptions for first home buyers

Stamp duty, also known as transfer duty in some states and territories, can be one of the largest upfront costs when buying a home. Many jurisdictions offer first home buyer concessions or exemptions that may reduce this cost for eligible buyers.

These concessions are separate from the First Home Owner Grant. Some buyers may qualify for both, some may qualify for one but not the other, and some may not qualify for either. For example, a buyer may be eligible for a transfer duty concession on an established home but not eligible for the FHOG if the FHOG in that jurisdiction is limited to new homes.

Stamp duty concessions often depend on:

• the purchase price or dutiable value of the property;
• whether the property is new, established, vacant land or off the plan;
• whether the buyer is purchasing as an owner-occupier;
• whether all purchasers are first home buyers or whether only some are;
• state or territory residency and occupancy rules;
• application deadlines and supporting documents.

Because transfer duty rules differ significantly across Australia, it is worth reviewing the rules that apply in the state or territory where the property is located. For a deeper explanation of transfer duty, see our guide to stamp duty for first-time buyers in Australia.

The Home Guarantee Scheme and low-deposit buying

The Home Guarantee Scheme is a Commonwealth initiative that may help eligible buyers purchase a home with a smaller deposit through a participating lender. Instead of giving the buyer a cash grant, the scheme provides a government guarantee to the lender for part of the loan. This may allow an eligible buyer to avoid lenders mortgage insurance in some circumstances.

The scheme is not the same as loan approval. Buyers still need to meet the participating lender's credit assessment, serviceability requirements, loan conditions and property criteria. Places may also be limited, and not every lender participates.

Eligibility factors commonly include:

• income caps for individuals or joint applicants;
• property price caps based on the property location;
• citizenship or residency requirements;
• whether the property will be owner-occupied;
• whether the buyer meets first home buyer or other scheme-specific criteria;
• the participating lender's assessment of borrowing capacity, deposit source, credit history and employment position.

For buyers with a smaller deposit, the Home Guarantee Scheme may be relevant when planning how much cash is needed before applying. However, a smaller deposit can still mean a larger loan and higher repayments than saving a bigger deposit. It is important to compare the short-term benefit of entering the market earlier against the longer-term cost of borrowing more.

First Home Super Saver Scheme

The First Home Super Saver Scheme, or FHSS, allows eligible people to make voluntary contributions into superannuation and later apply to release eligible amounts to help buy a first home. It is intended to support deposit saving, not to replace lender assessment or other upfront costs.

The FHSS can be useful for some buyers because super contributions may receive different tax treatment from ordinary savings. However, there are rules about which contributions count, how much can be released, how the release process works and what happens if you do not proceed with a purchase after funds are released.

Key planning points include:

• understanding the difference between compulsory employer super contributions and voluntary contributions;
• checking contribution caps and release limits before relying on the scheme;
• allowing enough time for the ATO determination and release process;
• considering how released funds will be treated by lenders as part of your deposit;
• understanding tax consequences and what happens if your purchase is delayed or cancelled.

Timing matters. If you plan to use FHSS funds, check the current process before signing a contract or committing to settlement deadlines. You may also want to discuss the timing with your conveyancer, accountant, mortgage broker or lender.

Shared equity and other state-based programs

Shared equity programs can help some eligible buyers purchase with a smaller mortgage because a government or scheme provider takes an equity share in the property. In simple terms, you may borrow less because another party contributes part of the purchase cost in exchange for a share of the property's value.

These programs are highly scheme-specific. Some are state-based, some target key workers or lower to moderate income households, and some may include first home buyers as well as other eligible groups. They may also have limited places or be available only for certain property types, locations or price ranges.

Before relying on a shared equity program, consider:

• who owns what percentage of the property;
• whether you can renovate, refinance, rent out or sell the property without consent;
• how future capital growth or loss is shared;
• whether you must buy out the scheme provider's share later;
• what happens if your income changes;
• whether the arrangement affects your future borrowing options.

Shared equity may reduce the amount you need to borrow upfront, but it can also involve long-term obligations. It is worth reading the scheme documents carefully and seeking professional advice if you are unsure about the implications.

Can you combine first home buyer grants and schemes?

Some first home buyers may be able to combine more than one form of assistance. For example, a buyer might be eligible for a transfer duty concession and also apply under a low-deposit guarantee. Another buyer might use FHSS savings as part of their deposit and also qualify for a state-based concession.

However, combining schemes depends on the rules of each program and your individual circumstances. Some benefits may be compatible, while others may have conditions that limit how they can be used together. The property must also meet each scheme's criteria, and the lender must be satisfied with your overall application.

When building your budget, separate the types of assistance into categories:

• Cash assistance: grants or released savings that may contribute to funds available for the purchase.
• Cost reductions: concessions or exemptions that may reduce upfront transaction costs.
• Deposit support: guarantee schemes that may reduce the deposit required by a participating lender.
• Loan size support: shared equity arrangements that may reduce the mortgage amount but create shared ownership obligations.

This distinction helps avoid double-counting. A stamp duty concession, for example, may reduce a cost you need to pay, but it is not the same as extra deposit cash. A guarantee scheme may help with low-deposit access, but it does not remove the need to afford repayments and meet lender criteria.

How assistance can affect your home loan planning

Government assistance may change your budget, but it does not replace a lender's assessment. Lenders will still consider income, expenses, existing debts, credit history, deposit source, property type, loan-to-value ratio and whether repayments appear affordable under their criteria.

Before applying for a loan, consider how assistance may affect:

• Your deposit: Some schemes may help you buy with less saved, while others simply reduce costs.
• Upfront cash flow: Concessions may reduce transaction costs, but legal fees, inspections, moving costs and insurance may still apply.
• Your borrowing amount: Buying with a smaller deposit may mean a larger loan and higher repayments.
• Lenders mortgage insurance: Some low-deposit pathways may reduce or avoid LMI, while ordinary low-deposit loans may still involve LMI.
• Settlement timing: Grants, FHSS releases and scheme approvals can involve separate timeframes.
• Your property search: Property price caps and property type rules may limit which homes are eligible.

You can explore broader home loan pathways at Home Loans Australia, and use the site's home loan calculators to test repayment and borrowing scenarios. Calculator results are estimates only and should be checked against lender criteria and your actual costs.

Common eligibility factors to check early

Although each program has its own rules, many first home buyer grants, concessions and schemes look at similar factors. Checking these early can help you avoid relying on assistance that may not apply to your purchase.

Buyer status

Most first home buyer programs consider whether you or your spouse, partner or co-buyer has previously owned residential property. The rules can be more detailed than simply asking whether your name has been on a title, so check how previous ownership, inheritance, investment property ownership or overseas property may be treated.

Citizenship, residency and age

Programs may require applicants to be Australian citizens, permanent residents or meet specific residency rules. Some schemes also have age requirements. If you are buying with another person, check whether all applicants must meet the criteria or whether one eligible applicant is enough.

Property type and value

Eligibility may depend on whether the property is newly built, established, off the plan, vacant land or a house and land package. Many schemes also include purchase price or property value caps that vary by location.

Occupancy requirements

First home buyer assistance is often aimed at owner-occupiers. You may need to move into the property within a required period and live there for a minimum time. If you plan to rent the property out, travel, renovate before moving in or buy with family members, check the rules carefully.

Application timing

Some assistance is applied for through a lender, some through a state or territory revenue office, and some through the ATO or a scheme provider. Missing a timing requirement can affect eligibility or delay settlement.

Documents you may need

The documents required depend on the program, but first home buyers are commonly asked to provide evidence that confirms identity, eligibility and property details. You may need:

• proof of identity;
• evidence of citizenship or residency status;
• contract of sale, building contract or land contract;
• loan documents or lender details;
• evidence of marital or de facto status where relevant;
• statutory declarations about previous property ownership;
• evidence that the property will be your principal place of residence;
• income documents for income-tested schemes;
• super contribution and release documentation if using the FHSS.

Keep copies of everything submitted. If your circumstances change after approval, such as a change in co-buyer, property, contract price, occupancy timing or loan structure, check whether you need to notify the relevant authority or lender.

Questions to ask before relying on a grant, concession or scheme

Before you include government assistance in your budget, ask practical questions about eligibility, timing and risk:

• Is the scheme currently open and available for the property I want to buy?
• Does the assistance apply to new homes only, established homes, land, off-the-plan purchases or all property types?
• Are there purchase price or property value caps?
• Do all buyers need to be first home buyers?
• Does my income affect eligibility?
• Do I need to live in the property, and for how long?
• When will the funds, concession or approval be available?
• Who applies: me, my lender, my conveyancer or another professional?
• What happens if settlement is delayed or the contract changes?
• Could I be required to repay the benefit if I do not meet ongoing conditions?

If you are unsure how a scheme fits with your loan application, a participating lender or mortgage broker may be able to explain process requirements. You can also find broker support through the site's mortgage broker information page.

Mistakes to avoid when budgeting for first home buyer assistance

Government assistance can be valuable, but it can also create budgeting mistakes if it is misunderstood. Common traps include:

• Assuming all first home buyers qualify: Eligibility varies, and some programs have narrow rules.
• Confusing grants with concessions: A concession reduces a cost; it may not increase your cash deposit.
• Ignoring property caps: A property slightly above a cap may be ineligible, depending on the rules.
• Forgetting lender assessment: Assistance does not guarantee loan approval or affordability.
• Overstretching because deposit access improves: A smaller deposit may still mean higher repayments and less equity.
• Missing timing requirements: Application and release processes can take time and may affect settlement planning.
• Overlooking ongoing obligations: Occupancy rules, shared equity conditions or notification requirements can continue after settlement.

Final thoughts

First home buyer grants, concessions and schemes in Australia can make a meaningful difference to upfront costs, deposit planning or loan structure for eligible buyers. The key is understanding what each program actually does and where its limits are.

The First Home Owner Grant may help with an eligible new home purchase, while stamp duty concessions may reduce a major upfront cost. The Home Guarantee Scheme may help eligible buyers purchase with a smaller deposit through a participating lender, while the First Home Super Saver Scheme can support deposit saving through voluntary super contributions. Shared equity programs may reduce the mortgage needed but can involve long-term obligations.

Because rules differ across states, territories and lenders, build your budget conservatively and confirm eligibility before making commitments. Government assistance can support your first home journey, but sustainable repayments, suitable loan features, realistic costs and careful timing still matter.

Published: Saturday, 18th May 2024
Author: Paige Estritori