Overcoming Hurdles and Seizing Opportunities
Entering the Australian property market for the first time presents a unique set of challenges. Aspiring first home buyers (FHBs) are often confronted with a significant gap between property price growth and wage growth, making it increasingly difficult to save a sufficient deposit while managing rising rental costs and interest rates.
In response to these hurdles, federal and state governments have introduced a range of schemes and grants designed to provide a crucial helping hand. These opportunities, while valuable, have created a complex and often confusing landscape of eligibility criteria.
Home Guarantee Scheme (First Home Guarantee)
First Home Owner Grants (FHOG)
Stamp Duty Exemptions & Reductions
A mortgage broker acts as a master strategist, assessing your complete financial profile against all available federal and state-level assistance to devise the optimal pathway into the property market.
The federal government's First Home Guarantee is particularly impactful, allowing you to enter the market with a much smaller deposit.
Purchase a property with a deposit as low as:
5%
General applicants
2%
Eligible single parents
Without paying LMI!
The government guarantees up to 15% of the loan, which provides the lender with the security equivalent to a 20% deposit.
Example:
Your 5% deposit + Government's 15% guarantee = 20% security for the lender
This significantly lowers the barrier to entry into homeownership.
While this scheme significantly lowers the barrier to entry, it's important to understand the trade-off:
Each state and territory offers its own set of grants and concessions. The rules, amounts, and eligibility vary significantly by jurisdiction.
| State/Territory | FHOG Amount | Key FHOG Conditions | Stamp Duty Concessions |
|---|---|---|---|
| NSW | $10,000 | New homes <$600k or land/build packages <$750k | Full exemption up to $800k; concessions up to $1M |
| VIC | $10,000 | New homes up to $750,000 | Full exemption up to $600k; concessions up to $750k |
| QLD | $30,000(until 30 June 2026) | New homes valued under $750,000 | Concessions for homes under $550k |
| WA | $10,000 | New homes. Cap $750k (south) or $1M (north of 26th parallel) | Concessions available under certain values |
| SA | $15,000 | New homes. Value cap removed from June 2024 | Stamp duty relief available |
| TAS | $10,000 | New homes (from 1 July 2024) | Full exemption on established homes up to $750k |
| NT | $50,000(new) / $10k (established) | HomeGrown Territory Grant. No property value cap | Stamp duty exemption for eligible house/land packages |
| ACT | Replaced by Concession Scheme | FHOG replaced by Home Buyer Concession Scheme | Full stamp duty concession, subject to income thresholds |
Combining Federal & State Benefits
The eligibility criteria for federal schemes (based on income and property price caps) are distinct from the rules for state-based grants. These schemes can often be combined to maximise your benefits.
For many first home buyers, the biggest obstacle is saving a 20% deposit. Let's understand LMI and how to avoid it.
A deposit of less than 20% typically requires the borrower to pay Lenders Mortgage Insurance (LMI). LMI is a one-off insurance premium that protects the lender—not the borrower—against potential loss if the borrower defaults on the loan.
Important:
LMI can add thousands of dollars to the upfront cost of buying a home, and it protects the lender, not you.
The traditional approach: Save 20% of the property value as your deposit
Government guarantees up to 15% of your loan, allowing a 5% deposit without LMI
Potential Savings
On a $500,000 property with a 10% deposit, LMI could cost you $10,000-$20,000. The First Home Guarantee eliminates this cost entirely!
The path to your first home doesn't have to be overwhelming. Let's sit down and create a personalized strategy that maximizes all available grants, schemes, and opportunities for your situation.
Did You Know?
With the right strategy, many first home buyers can enter the market with as little as a 5% deposit while accessing thousands of dollars in grants and stamp duty savings. Let us show you how.