First Home Buyers Grant Guide — Everything You Need To Know

There’s no denying it, the road to property ownership is an expensive one. Between saving for the deposit to covering the legal expenses, it’s safe to say many prospective property owners feel the pinch all before they get the keys to their new home. Fortunately, financial assistance is available for first-time home buyers in Australia — the First Home Buyers Grant.

This guide will explain everything you need to know about this grant, from its origin and purpose to its eligibility details and how to maximise it.

What is the First Home Buyers Grant — history and purpose

Whether you know it as the First Home Owner Grant (FHOG) or the First Home Buyers Grant (FHBG), they both serve the same purpose: to help first-home buyers break into the property market.

The First Home Buyers Grant is a government initiative introduced in 2000 to help Australians purchase their first home. Established to offset the effect of the Goods and Services Tax (GST) on homeownership, the grant aims to make it easier for first-time buyers to enter the property market by providing financial assistance, reducing the burden of initial costs such as a deposit or other upfront expenses.

The property market in Australia has seen consistent growth over the years, making it increasingly difficult for new buyers to secure a place in the market. The introduction of the FHBG was a response to these challenges. By offering a grant to eligible first-time buyers, the government aimed to stimulate the housing market, support economic growth and ensure that the dream of homeownership remained within reach for all Australians.

An overview of the First Home Buyers Grant — how much could you receive in your state

The FHBG is a one-off payment provided by the government to eligible first-time homebuyers. The grant’s amount can vary depending on the state or territory where the property is being purchased and the type of property (newly built, existing or off-the-plan).

In most states, the grant is primarily available for the purchase or construction of a new home. The exact amount and conditions can differ, but generally, you can expect the following:

• The First Home Buyers Grant in NSW — Up to $10,000 for new homes valued up to $750,000.

• The First Home Buyers Grant in VIC — Up to $10,000 for new homes in metropolitan areas and up to $20,000 in regional areas.

• The First Home Buyers Grant in QLD— Up to $15,000 for new homes valued up to $750,000.

• The First Home Buyers Grant in WA— Up to $10,000 for new homes.

• The First Home Buyers Grant in SA — Up to $15,000 for new homes valued up to $575,000.

What are the eligibility requirements for the First Home Buyers Grant?

While the FHBG sounds like a dream come true for many prospective buyers, there are a few eligibility requirements you must meet before you can apply. They include:

• First-time property owner — You (and your partner, if applicable) must be first-home buyers, meaning you’ve both never owned a residential property in Australia.

• Age — You must be at least 18 years old to qualify for the First Home Buyers Grant.

• Residency — You must be an Australian citizen or permanent resident.

• Property type — The property must be a new home, meaning it hasn’t been sold or occupied as a place of residence before. Some states may also offer the FHBG for substantially renovated homes.

• Value cap — As mentioned earlier, the property’s value must be under a certain threshold, which varies by state.

• Occupancy requirement — You must live in the home for at least 6–12 months, depending on your state’s regulations. This means you cannot purchase the property for investment purposes.

Our top five tips for navigating your first property purchase

Property ownership is as stressful as it is rewarding. And if you’re gearing up to purchase your first property, here are our top five tips to help you get started:

• Use the First Home Buyers Grant wisely — While the grant is a fantastic financial boost, it’s still crucial to budget carefully, as several other costs are associated with homeownership. These include stamp duty, legal fees, home and contents insurance and ongoing expenses like council rates and maintenance.

• Always do your research — Understand the property market in your area, including price trends, types of properties available and the suburbs or regions that best fit your needs and budget. While it’s easy to get swept up in the moment of finding the “perfect home”, it’s important to treat your search as transactional as possible to keep you from biting off more than you can chew.

• Get home loan pre-approval — Before you start house hunting, consider getting pre-approval for a mortgage. This gives you a clear idea of your budget and how much you can afford to borrow and shows sellers that you’re a serious buyer.

• Inspect thoroughly — Always conduct thorough inspections of any property you’re interested in. This includes building and pest inspections to ensure no hidden issues could cause problems later. While these can add up over time, it’s important to remember that they are essential to ensure the property is as fuss-free as possible.

• Consider the expertise of a mortgage broker — A mortgage broker can be an invaluable resource in your home-buying journey. They do all the heavy lifting that comes with finding the best home loan for your needs, navigating the complexities of borrowing, and they can even assist with grant applications. Mortgage brokers have extensive knowledge of government grants, like the FHBG, and can help you determine your eligibility.

Know where you stand with the First Home Buyers Grant — speak to our team at Shore Financial today

Buying your first home is one of the most challenging things you will ever do, so why not have a team of experts by your side to guide you through the process? Shore Financial is a leading mortgage broker with over a decade of experience in the lending space.

We offer a range of loan services that make your home buying journey as smooth as possible. Whether you’re a first-time buyer, a seasoned investor or looking to refinance, our team of brokers have access to more than 40 lenders to ensure you receive the most competitive offer for your needs.

For more information about the First Home Buyers Grant or on how we can assist you in buying your first home, please get in touch with us today.

FAQs

What is The First Home Buyers Grant, and who is eligible?

The First Home Buyers Grant is a one-off government payment that helps first-time home buyers purchase their first property. The total amount paid depends on the state applicants are from, and applicants must pass certain requirements to be considered eligible. For instance, applicants must be over the age of 18, an Australian citizen or permanent resident and have never owned a property before. The property must also fit within a certain payment threshold, usually between $600,000 and $750,000 for home and land packages.

Can the First Home Buyers Grant be used in conjunction with other incentives?

Yes, the First Home Buyers Grant can be combined with other government property ownership incentives. Just keep in mind that other programs come with their own set of criteria you must be eligible for.

Is there a time limit to apply for the First Home Buyers Grant?

Yes, there is typically a time limit to apply for the First Home Buyers Grant. The exact time limit can vary depending on your state or territory, but it’s generally a few years after the property settlement date. Applicants are encouraged to check their state’s time caps before applying.