Though the housing market seems more inaccessible than ever, there are also more government incentives available to first home buyers than ever before.
Essentially, these incentives can help you save tens of thousands on your mortgage. Therefore, it's a good idea for anyone to get familiar with what grants and schemes are available for first home buyers.
As a first home buyer residing in Australia, you may be eligible for the following five Government grants or incentives:
On this page, we will provide a rundown on the conditions and eligibility criteria for each of these, including information on how to apply.
The First Home Owner Grant (FHOG) is a government subsidised lump sum payment to support eligible first home buyers in Australia with buying their first property. The amount you'll receive will vary across different states and territories since these grants are funded at state level, but typically eligibility criteria remains standardised nationwide:
The only major differences among states when it comes to the First Home Owners Grant are the limits imposed on property type and valuation. For most states, the FHOG is only available to those purchasing or constructing a brand new home, though in some states a substantially renovated home may qualify for the grant.
The FHOG amounts handed out for each state are as follows:
You can click on your relevant state to see our state-specific First Home Owner Grant guides that outline all the details regarding eligibility and steps on how to apply.
The First Home Super Saver (FHSS) scheme allows first home buyers to utilise their super fund to save up quicker through voluntary super contributions. These contributions are subject to the same concessional tax rates as standard superannuation and are capped at $15,000 per financial year.
Those keen to use the FHSS scheme will be happy to note that the maximum overall contribution amount has increased from $30,000 to $50,000 beginning 1 July 2022.
First home buyers need to submit an application to be considered for the FHSS scheme before signing the contract of sale for their first home or applying for a cash release from your super fund.
Though you can make multiple separate contributions, you are only allowed one release of funds under the FHSS scheme. Furthermore, the FHSS release will offset any existing debts owed to any Government institutions such as the ATO. However, your FHSS release won't be used to pay down the account balance of your higher education or trade support loan (i.e. HELP, SFSS or TSL) unless you have outstanding income tax debt, which includes a compulsory repayment for your study loan.
You can read more about how the scheme is intended to help you save for your first home quicker in our detailed explanation of the First Home Super Saver Scheme.
The First Home Guarantee Scheme (FHBG) is one of the main Home Guarantee Schemes that have recently been made available by the Australian Government. It is important to note that this has since replaced the First Home Loan Deposit Scheme (FHLDS) and New Home Guarantee (NHG).
The FHG is a selective initiative administered and managed by the National Housing Finance and Investment Corporation (NHFIC) that aims to assist eligible first home buyers in settling into their first home sooner.
Although the FHLDS and NHG were both limited to 10,000 first home buyers between 1 July 2021 and 30 June 2025, recent changes have seen this increase to 35,000 between 1 July 2022 and 30 June 2023 under the First Home Guarantee.
Under the FHBG, the NHFIC looks to guarantee a portion of an eligible first home buyer's home loan so that they can purchase the property sooner with the less required deposit. The NHFIC can guarantee up to 15% of the property value (as assessed by your lender). This guarantee is not a cash payment and is subject to lender participation.
This is particularly useful for younger first home buyers struggling to save up a sizeable deposit, as it enables an eligible home buyer to purchase a property using as little as 5% deposit without incurring costly Lender’s Mortgage Insurance (LMI) premiums.
Unlike the First Home Loan Deposit Scheme and New Home Guarantee (which only applied to buyers purchasing an established home or building a new home respectively), the FHBG allows for either of the two options.
The Family Home Guarantee (FHG) is another national Home Guarantee Scheme provided by the Australian Government. This is funded by the NHFIC to support eligible home buyers to purchase a home sooner and with a smaller deposit.
More specifically, the FHG aims to assist single parents with at least one dependent child with purchasing a family home, regardless of first home buyer status.
This particular incentive is open to 5,000 eligible applicants annually until 30 June 2025.
Like the First Home Guarantee, the NHFIC will insure up to 18% of the property's value under the FHG (subject to lender participation). This means that an eligible single parent can purchase a home while putting down as little as 2% deposit and without having to pay LMI.
With the announcement of the 2022 Federal Budget, the government has indicated their plans to roll out the Regional Home Guarantee (RHG) scheme in response to the growing concerns of population density in capital cities.
The RHG scheme looks to incentivise property purchase and construction in regional areas of Australia by reducing the amount of deposit required to purchase in these underpopulated regions.
Along with the other series of Home Guarantee Schemes that have been rolled out in recent years, the RHG looks to provide home buyers the opportunity to purchase sooner without a substantial deposit.
The Regional Home Guarantee Scheme offers eligible homebuyers in rural and regional areas the chance to build or purchase a newly established home with a deposit as low as 5%. Just like the others, the RHG scheme also mitigates the need for LMI, possibly saving new homeowners thousands in the process.
The Help to Buy (HTB) Scheme was a major part of the Labor Government's 2022 election campaign and seeks to ease the burden on first home buyers by providing government assistance of up to 40% of the property value.
Although this means that the government owns a share of any property purchased through the HTB Scheme, it allows prospective first homeowners to purchase the equity back once they are financially comfortable.
It will be made available from later this year for up to 10,000 Australians each financial year.
The Help to Buy Scheme can be utilised by any eligible first time buyers, whether they are purchasing new or established property.
The Government will provide an equity contribution of up to 40% for purchasing a new house and up to 30% for an existing house. This means that buyers can put up as little as 2% deposit for the purchase of their first home and all without having to pay the dreaded LMI premiums.
Home buyers who use the HTB Scheme will not be expected to pay any rent on the stake of their property owned by the Federal Government and can purchase the equity back when convenient in increments of 5% or more.