How to navigate Australia's First Home Buyer Grants

Purchasing property in Australia might be a little easier than you think, thanks to the financial assistance provided by a decent selection of First Home Owner Grants available across Australia. While the grants could be colloquially deemed “free money”, there is a list of requirements you must meet for the sake of eligibility, but once your grant has been approved you’ll be well on your way to securing your first home in no time.

To break down the extent that a grant could actually help you, consider purchasing an off-the-plan apartment for $300,000. With a low deposit home loan of 5%, you’d need to come up with a deposit of $15,000. Take $10,000* off that amount provided by a First Home Buyer Grant, and you’re left with just $5,000 to pay from your own savings.

*Based off of grants offered in some states.

Find out which grant will help you based on which state you live in, by referring to our state-specific list:

VICTORIA

• First Home Owner Grant of up to $10,000 if purchasing property within the city, and $20,000 for regional Victorian properties valued up to $750,000
• First Home Buyer Duty Reduction of stamp duty fees up to 50% if the house is worth up to $600,000
• Principal Place of Residence (PPR) stamp duty concession for primary dwelling homes worth up to $550,000 
• First Home Buyers with Family (at least one child) stamp duty concession on homes valued up to $200,000
• Off-the-plan stamp duty concession 
• Young farmers concession, for those purchasing their first farmland

QUEENSLAND

• Queensland First Home Owners Grant offers $15,000 for first home buyers who are buying or building a new house, unit or townhome valued up to $750,000
• If your contract was signed between 1 July 2016 to 30 June 2018 you could be eligible for $20,000

NEW SOUTH WALES

• $10,000 First Home Owner Grant for builders of new homes up to $750,000, and purchases of new homes up to $600,000
• Stamp duty relief for all homes up to $650,000 
• Reduced stamp duty fees for homes valued between $650,000 and $800,000
• No insurance duty on Lender’s Mortgage Insurance (LMI)

AUSTRALIAN CAPITAL TERRITORY

• First Home Owner Grant of $7,000 for new, substantially renovated or off-the-plan properties up to $750,000
• Ability to defer stamp duty payment if eligible for the First Home Owner Grant
• From 1 July 2019, the First Home Owner Grant will change to a Home Buyer Concession Scheme where buyers can be eligible for a stamp duty exemption if they meet certain criteria

NORTHERN TERRITORIES

• From 7 May 2019, if you’re buying or building new, you could be eligible for a First Home Owner Grant of $10,000
• You may also be eligible for the BuildBonus grant of $20,000 which is limited to 600 applications only
• Territory Home Owner Discount is a stamp duty concession of $18,601 available to those buying an established home, new home or land to build a new home in the Northern Territory

TASMANIA

• First Home Owner Grant of $20,000 for those who meet certain criteria will be available up until 30 June 2020
• For eligible grant applications from 1 July 2020 onwards, the amount awarded will be $10,000

WESTERN AUSTRALIA

• First Home Owner Grant of up to $10,000 for new builds valued up to $750,000 within the Perth metropolitan area
• First Home Owner Grant of up to $10,000 for new builds valued up to $1 million, north of the Perth metropolitan area

SOUTH AUSTRALIA

• $15,000 for new residential dwellings up to $575,000 (you must live in the property for at least 6 months in the first year to be eligible)
• Off-the-plan concession on stamp up to $21,330 for eligible contracts entered between 31 May 2012 to 30 June 2018
• Other grants of up to $7,000 are available for existing homes 

FIRST HOME OWNER GRANT (FHOG) RULES 

Some of the rules that can be associated with these grants include a minimum age (often 18-years-old), at least one of the purchasers must hold Australian citizenship and it must be the first home bought by the purchaser and their spouse. Head to the website of your municipal government to find out if you meet the eligibility criteria. 

OTHER INCENTIVES TO NOTE:

Geocon’s End Of Financial Year Property Bonus: Geocon is offering a deal where you can buy a Republic apartment for $1,000 and Geocon will pay the remaining 5% deposit, up to $50,000*.

*Only 3 weeks left and Terms & Conditions apply.

Mirvac is offering pre-qualified first home buyers the opportunity to purchase an apartment with a 5% deposit. Mirvac will also match the government’s first home owner grant on selected 2-bedroom Tullamore apartments.

DKA Property is providing buyers with financial assistance towards covering the first year’s strata levies cost to the value of $1,000.

Plantation Homes are offering free, no-obligation consultation preliminary finance qualification so buyers can find out what they can afford.

Caydon are offering to boost first home buyer deposits by $20,000 when purchasing one of their Malt District apartments. This may be used in conjunction with the First Home Buyer Grant.

Some off-the-plan sales are also able to be negotiated, so you can significantly reduce your purchase price by placing a low ball offer.

It is, however, important to weigh up your options when purchasing your first home, and although a property may be financially viable (and look good on paper) you'll want to ensure it meets your needs in terms of look and feel; location; amenity offering; quality; and champions timeless modern design.

Sources:  State Revenue Office Victoria | QLD.GOVT.AU | NSW.GOVT.AU | Revenue ACT | NT.GOVT.AU | State Revenue Office of Tasmania | Finance Western Australia | Revenue South Australia

Disclaimer: While Urban strives to provide accurate content, we do advise that readers undertake their own research and to only use our findings as a guide.