Comprehensive Guide to First Home Buyer Grants and Stamp Duty

If you dream of becoming a homeowner but cannot afford to put down a suitable deposit or need financial support, the government may be able to help you.

Various forms of first home buyer support are available at federal and state government level.

Federal government support

The Home Guarantee Scheme (HGS) helps eligible first home buyers in Sydney, NSW, and throughout the country purchase a home sooner through the offering of two guarantees – but there are limited places available each financial year (FY).

While lenders generally require buyers to put down a deposit of at least 20%, these government guarantees can help buyers purchase a property with as little as a 5% deposit, and without paying lender’s mortgage insurance (LMI).

1. First Home Guarantee (FHBG)

Deposit: from 5%

Places available for 2023-24: 35,000

2. Regional First Home Buyer Guarantee (RFHGB)

Deposit: from 5%

Places available for 2023-24 and 2024-25: 10,000

Home buyers must be purchasing a home in a regional area.

Who can apply

Both schemes are available for first home buyers or previous homeowners who haven’t owned a property in Australia in the past 10 years. In addition, buyers must:

apply as individuals or two joint applicants
be Australian citizens or permanent residents
be at least 18-years-old
earn up to $125,000 for individuals or $200,000 for joint applicants
intend to live in the purchased property

Price caps vary by state or territory.

State and territory first home buyer support

First home owner grants

Most states offer first home owner grants to eligible buyers. These are a once-off, cash subsidy that can be used to reduce the value of your home loan or put towards your deposit.

Criteria

Conditions vary from state to state, but first home owner grants are generally available to first home buyers of newly built properties – or those still under construction – that have never been lived in, or properties that have been substantially renovated but not lived in since renovations were completed. They are also available to first home buyers wishing to build their own homes.

If you are buying a new or renovated home, it needs to serve as your primary place of residence for at least 12 months in most states. If you are constructing the property, you generally need to move in within 12 months of completion and live in the home for at least six months.

Each state may have its own variations of these conditions; property price caps also differ from one state to another.

Loan Station, a reputable mortgage broker in Sydney has the experience and knowledge to not only assist first home buyers in NSW, but aspiring homeowners across the country.

Stamp duty relief

Some states and territories also offer stamp duty exemptions or concessions to eligible first home buyers.

Stamp duty, also referred to as transfer duty, is a property tax levied by state governments, based on the purchase price of your property. It can be the biggest cost outside of your deposit, ranging from tens to even hundreds of thousands of dollars.

To calculate your estimated stamp duty, use this handy stamp duty calculator provided by Loan Station, a mortgage broker in Sydney.

Grants and concessions by state/territory

New South Wales

First Home Owner (New Homes) Grant

Grant/subsidy: $10,000.

Price caps: $600,000 to $750,000

Stamp duty relief

Full exemptions and partial concessions are available.

Loan Station, a reputable mortgage broker in Sydney, can help first home buyers in NSW apply for a mortgage, compare various offers and assist with this grant application.

Victoria

First Home Owner Grant

Grant/subsidy: $10,000

Price cap: $750,000

Stamp duty relief

Full exemptions and partial concessions are available.

Loan Station, a mortgage broker in Sydney, can assist first home buyers in Victoria understand and apply for the FHOG as well as any duty exemptions and concessions they may qualify for.

Queensland

First Home Owner Grant

Grant/subsidy: $15,000 or $30,000

Price cap: $750,000

Stamp duty relief

Full exemptions and partial concessions are available.

Queensland first home buyers can contact Loan Station, a mortgage broker in Sydney, for further assistance.

Western Australia

First Home Owner Grant

Grant/subsidy: $10,000

Price caps: $750,000 to $1 million

Stamp duty relief

Partial concessions are available.

Loan Station, a reputable mortgage broker in Sydney, can help first home buyers in Western Australia apply for both this financial support and a mortgage.

South Australia

First Home Owner Grant

Grant/subsidy: $15,000

Stamp duty relief

Full exemptions or partial concessions are available.

For personalised guidance and advice, contact Loan Station, a reputable mortgage broker in Sydney.

Tasmania

First Home Owner Grant

Grant: $20,000 or $30,000

Commonwealth HomeBuilder Grant

Grant: $25,000

Stamp duty relief

A 50% discount is available to eligible buyers of established properties.

Loan Station, a mortgage broker in Sydney, can help first home buyers in Tasmania apply for financial support and a mortgage.

Northern Territory

First Home Owner Grant

Grant: $10,000

Stamp duty relief

Exemptions are available to eligible buyers (not just first home buyers) through the House and Land Package Exemption (HLPE).

Australian Capital Territory

Stamp duty relief

The Home Buyer Concession Scheme, which replaced ACT’s previous first home owner grant on 1 July 2019, offers first home buyers a concession on stamp duty for both new and established homes.

How to apply

First home buyers in Australia can apply for financial support from the federal government or their state or territory governments. While general eligibility criteria are similar for the various forms of aid – including grants, guarantees and stamp duty relief – each scheme has its own conditions.

From first home buyers in Sydney, NSW, to aspiring homeowners based in other states, Loan Station, a mortgage broker in Sydney, can give you expert advice and guidance on the various government grants and concessions available to you.

Contact us today for personalised assistance.

FAQs

What is the first home buyer’s grant Australia 2024?

The first home owner grant is a once-off cash subsidy to help first home buyers purchase newly built or substantially renovated properties, or even construct their own homes. The properties must be used as the buyer’s main place of residence.

Who is exempt from paying stamp duty in Australia?

Depending on the state in which you are purchasing a property, stamp duty relief may be available to first home buyers, pensioners, disabled buyers, farmers and/or spouses transferring property from one to the other. Relief in the form of concessions and exemptions are also available in other circumstances.

What is the Help to Buy scheme in Australia?

Help to Buy is a federal government initiative to help eligible buyers purchase their own homes by providing an equity contribution of up to 40%, enabling them to take out a mortgage with as little as a 2% deposit, and without paying lender’s mortgage insurance (LMI). The program is expected to be implemented by states this year.

What benefits are available for first home buyers in Australia?

First home buyers may be eligible for cash grants or stamp duty relief.

Do first home buyers pay stamp duty in Australia?

Some states offer eligible first home buyers full stamp duty exemption or partial concessions based on the types and values of properties they are buying.

Who is eligible for first home buyer’s grant Australia?

Each state has its own eligibility criteria but generally buyers need to be purchasing a brand new home or constructing their own. They also need to prove they have not owned property in Australia for at least 10 years and that the property they are purchasing will be their primary residence.