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Government Grants and Schemes

Grants and schemes

In Australia, there are several government grants and schemes aimed at assisting first-home buyers or those building a home. 

Designed to make homeownership more accessible and affordable, these initiatives can help you to realise your home ownership dreams sooner than expected.  

Each of the grants and schemes have a range of different eligibility criteria and some also have limited approval numbers or restrictions on when they can be applied. As such, knowing which of these is suited to your circumstances or that is worth pursuing can be a challenge. 

In this guide, we’ll look at the main schemes and grants offered by the Australian government, covering the basics of what they offer and who may be eligible. 

Government Grants & Schemes Available in 2024 

The following are the core government grants and schemes available in Australia to eligible first-home buyers or builders in 2024. 

These can change each year, so please refer to your state or territory’s relevant governing body to check the most current offers. 

First Home Owner Grant (FHOG)

The FHOG is a national scheme that provides a one-off monetary grant to first-home buyers who meet certain eligibility criteria. The grant amount and eligibility conditions can vary between states and territories but tend to follow the same rules. 

Typically this is a one-off payment of AUD$10,000 and is available to individuals who are buying or building a new home as their primary place of residence. 

Additionally, at least one applicant must be an Australian citizen or resident and neither can have owned a home prior to the 1st of July 2000. 

Home Guarantee Scheme 

As per Housing Australia, in this scheme the government:

‘Works with Participating Lenders to facilitate loans to eligible home buyers who meet income eligibility thresholds and other eligibility criteria and don’t have the 20% deposit typically required for a home loan.’

This scheme is split into three parts:

The First Home Guarantee (FHBG)

This scheme aims to support eligible first-home buyers in purchasing a newly built home with a deposit of as little as 5% by guaranteeing loans up to 15% of the property’s value. 

It’s designed to encourage the construction of new homes and increase supply in the housing market. There are limited places for this scheme annually, for the financial year 2023-2024 this was listed as 35,000. 

This is a variation on the former (now unavailable) First Home Loan Deposit Scheme (FHLDS) in which the government guaranteed additional loan amounts above 5% as required to reach a 20% deposit so that buyers can avoid the additional cost of LMI. 

Family Home Guarantee (FHG)

This scheme supports eligible single parents and eligible single legal guardians of at least one dependent to buy a home sooner, with a deposit of as little as 2%. As with the FHBG, the government guarantees the remaining percentage of the property’s value. 

There are limited places for this scheme annually, for example for the financial year 2023-2024 there are 5,000 places available.

Regional First Home Owner Grant (RFHBG)

Some states or territories offer additional grants or incentives for first-home buyers who are purchasing or building in regional areas. These grants are often aimed at encouraging population growth and economic development in regional communities.

With around 10,000 places offered annually for this scheme, successful applicants will also see the balance of the deposit over 5% guaranteed by the government. 

Get into your new home sooner

First Home Super Saver Scheme (FHSSS)

In this scheme, eligible individuals have the capacity to save for their first home through their superannuation fund, which may result in tax savings. 

It is important to note that only personal contributions made under this scheme can be withdrawn and used along with associated earnings, to put towards a first home purchase.

Shared Equity Scheme (Help To Buy Scheme)

Under this new equity scheme introduced in July 2023, the government is set to contribute up to 40% of the property price for a new home, and up to 30% for an existing one. 

This equity stake will be held by the government until you’re capable of repaying it, with a minimum repayment of 5% at a time. 

Additionally, the scheme reduces the deposit requirement, enabling you to purchase or construct a new home with just a 2% deposit and without the need for Lenders Mortgage Insurance (LMI).

The Help to Buy Scheme is slated to roll out nationwide in July 2023. To qualify, you must as a minimum: 

  • Be at least 18 years old and an Australian Citizen (permanent residents are ineligible).
  • Have an annual income of no more than $90,000 for singles or $120,000 for couples.
  • Not possess any land or property in Australia or abroad.
  • Intend to use the home as your primary residence.

Stamp Duty Concessions and Exemptions

While not expressly a grant or scheme, many states and territories offer stamp duty concessions or exemptions for first-home buyers. This means you pay a reduced amount of stamp duty or none at all. 

Stamp duty is a significant upfront cost associated with purchasing property, and these concessions can help reduce the financial burden for eligible buyers.

A Word On The HomeBuilder Grant

Introduced in response to the COVID-19 pandemic, the HomeBuilder grant provided eligible owner-occupiers (including first-home buyers) with a grant to build a new home or substantially renovate an existing home. 

Applications for this grant have closed. However, with the government having a continued focus on encouraging new home builds due to the growing housing crisis, this may change in future. 

Determining Eligibility 

It’s important for potential home buyers to research and understand the specific eligibility criteria, application processes, and deadlines associated with each program. 

It is also worth noting that not all grants and schemes are offered in all states and territories. 

Ensuring you are eligible for certain schemes or grants and have accessed all those that are available to you, can significantly reduce the financial barriers associated with buying a home. 

How Stop Renting Perth Can Help

At Stop Renting Perth, we are experts in all available grants and schemes offered to new home buyers in Western Australia. 

Specialising in new-home builds, we offer over 70 home designs to choose from and offer land in locations all over Perth. 

Supporting you in determining which grants and schemes you are eligible for and applying for them, we ensure you are best placed to enter the housing market and likely much sooner than expected. 

We’ve been where you are and understand how difficult it can be to become a homeowner while dealing with ever-increasing rental costs. Our lenders look beyond simple factors such as whether you have a deposit or savings set aside, recognising that this should not be the only qualifying criteria for lending. 

Get started today with Stop Renting Perth

Escape The Cycle Of Renting – Get Started Today

Whether you think you’re ready to build a new home or not, we can help. 

Working closely with you, we assess your circumstances and determine which of our house and land packages, along with any government support, you qualify for. 

Where needed, we can also provide you with proven strategies and a roadmap for success to ensure you can begin building and living in your dream home as soon as possible. 

To arrange your obligation-free consultation, learn more about how we can help you access government funding and become a homeowner sooner, book a call with Stop Renting Perth today.

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We’re here to help, so let’s get started! it’s time to stop renting and start taking steps towards home ownership.