If you’re digging into this article, it’s likely that you’ve found yourself pondering the question, ‘what is a grant?’

If you’re just starting with government grants or looking to deepen your understanding of business grants and government funding, you’ve come to the perfect spot to discover the information you need.

In this blog, we will explore what grants are, delve into the various types available, and clarify essential terminology you need to know before submitting your grant application.

Getting the realm of grants and government funding can feel overwhelming if you’re not well-versed in the process. That’s why we’ve crafted this article to equip you with a solid foundation of understanding.

What we have in this article:

• What are government grants?
• Types of government grants and schemes
• State wise first home buyer schemes
• How much do you need to save?
• How ASK Fiancials will support you? 

Government grants and schemes for Australian first-time buyers

Several national policies and incentives help first-time homebuyers in Australia achieve homeownership. These schemes help buyers overcome high home prices and large deposits. Key efforts include the Family Home Guarantee for single parents, the Regional Home Guarantee for regional buyers, and the New Home Guarantee for new buildings. These schemes give financial assistance and make it easier to get your first home by partnering with many lenders to offer a selection of home loan packages.

 

Types of Government Grants for First Home Buyers

First Home Guarantee Scheme

Ideal for: Small depositors

NHFIC, now Housing Australia, insures up to 15% of a deposit with a participating lender. Avoiding lenders mortgage insurance requires just 5% of the property’s worth as a deposit.

The First Home Guarantee isn’t cash. The government guarantees 15%.

This programme offers 35,000 slots from July 1, 2023, to June 30, 2024.

Eligibility

Buying an existing home, a house and land combination, land with a separate contract to develop, or an off-the-plan apartment or townhouse qualifies you for this programme.

Visit Housing Australia to see your state’s home price limit. Caps vary by region from $400,000 to $900,000.

Must be eligible:

• Be Australian or a permanent resident.
• Age 18 or older.
• Apply as an individual or couple, not a business or trust.
• The ATO limits individual income to $125,000 and couple income to $200,000.
• Plan to live there.
• Lack of Australian property ownership in the last decade. 

Family Home Guarantee (FHG)

Ideal for: Single parents

Single parents or guardians may put down as little as 2% with the Family Home Guarantee (FHG) via participating lenders.

Eligibility

You may purchase your first house or own one. You cannot possess a second property or plan to acquire one after settlement.

Housing Australia offers the plan to 5,000 persons from July 1, 2023, until June 30, 2024.

Must be eligible:

• Apply individually.
• Single parent or guardian with a child.
• Being an Australian citizen or permanent residence
• Age 18 or older.
• Be under $125,000 per year.
• Lack extra property or plans to acquire more.
• Property prices are capped. Visit Housing Australia for state limitations.

Regional First Home Buyer Support Scheme (RFHBG)

Ideal for: Regionalites

This programme helps rural Australians become homes. A 5% deposit without LMI is available to accepted applicants, like the First Home Guarantee. The maximum participating lender guarantee is 15% of the property value.

Eligibility

From July 1 to June 30, 2023, 10,000 slots are available.

Must be eligible:

• Be Australian or a permanent resident.
• Age 18 or older.
• Individuals or couples may apply.
• The ATO limits individual income to $125,000 and couple income to $200,000.
• Live at home.
• Have not bought a property in 10 years.
• Live in the region for 12 months after the home loan agreement.
• Use a participating lender or mortgage broker. 

First Home Super Saver Scheme(FHSS)

Ideal for: Tax-savvy purchasers

The FHSS lets people use their super fund to save for a housing deposit. Your super fund allows pre-tax and post-tax voluntary contributions and withdrawals of up to $50,000 for a property deposit.

You may withdraw $15,000 in voluntary contributions every financial year from the FHSS, which has a $50,000 cap.

Funds may arrive in 15–20 days. To pay off ATO or Commonwealth debt, the withdrawal amount may be lowered.

Eligibility

Australian citizenship or residence is not needed for the First Home Super Saver Scheme.

Must be eligible:

• Age 18 or older.
• Have never owned property or requested FHSS release.
• In the first year of ownership, live there for six months. 

The First Home Owner Grant (FHOG)

Ideal for:  first-time buyers of new home.

Depending on where you reside, you might get up to $30,000 to help construct or purchase a new house. The FHOG is accessible across Australia excluding the ACT. The award varies significantly from state to state, so visit your state’s website for further details.

Eligible candidates may get up to:

• Queensland: $ 15,000.
• Victoria has $10,000.
• South Australia: $ 15,000.
• New South Wales costs $10,000.
• Western Australia charges $10,000.
• Tasmania costs $30,000.
• Northern Territory: $10,000.

The FHOG is tax-free, so you do not need to report it as taxable income on your yearly return. 

State wise first home buyers schemes

NSW

1. First Home Owner Grant (FHOG): This grant helps first-time buyers buy or build a new home by giving them up to $10,000.
2. The First Home Buyers Assistance Scheme : for people who are buying their first home that is worth less than $1 million avoid paying some or all of the transfer tax.
3. Shared Equity Home Buyer Helper: This programme helps first-time home buyers by paying up to 40% of the price of the home. It is open to nurses, midwives, firemen, teachers, early childhood educators, and police officers. 

NT

1. First Home Owner Grant (FHOG): This grant helps first-time buyers buy or build a new home by giving them up to $10,000.
2. HomeBuild Access is a government loan with low interest rates that can cover up to 17.5% of the price of a new home or building. 

QLD

1. The First Home Owner Grant (FHOG) provides up to $15,000 to qualifying first-time purchasers to assist them purchase or construct a new home.
2. First Home Concession: Lowers the transfer duty imposed on first residences. The amount of the decrease you get is determined on the value of the property.

Purchase prices for new construction or new residences. 

SA

1. The First Home Owner Grant (FHOG) provides up to $15,000 to qualifying first-time purchasers to assist them purchase or construct a new home.
2. Full stamp duty exemption is available for residences valued at $650,000 or less. Partial relief for properties priced between $650,001 and $700,000. 

TAS

1. The First Home Owner Grant (FHOG) provides up to $30,000 to qualifying first-time purchasers to assist them purchase or construct a new home.
2. Commonwealth HomeBuilder Grant: Up to $25,000 for building or purchasing a new house.
3. Transfer duty reduction: First-time purchasers get a 50% discount on transfer duty. 

VIC

1. First property Owner Grant (FHOG): Up to $10,000 for qualifying first-time purchasers to buy or develop a property.
2. Victorian Homebuyer Fund shared equity: The government pays up to 25% of the home’s purchase price for equity, letting you pay 5% and avoid LMI.
3. Stamp duty reduction: First-time purchasers may reduce or eliminate stamp duty depending on house value.  

WA

1. First house Owner Grant (FHOG): To assist qualified first-time homebuyers in the purchase or construction of a new house, up to $10,000 is available.
2. The Home buyers Assistance Account (HBAA) provides qualified first-time purchasers with up to $2,000 to assist with the down payment on a home.
3. First-time purchasers get a reduced duty on dwellings or unoccupied land under the first-home owner rate (FHOR). 

How Much Do You Need To Save?

A deposit of five to twenty percent of the qualified property’s worth is required. Although this Scheme requires a 5% minimum deposit, depending on your financial situation, Participating Lenders may demand a greater percentage deposit. For the purposes of this Scheme and your lender’s lending requirements, find out from them whether the deposit you have consists of real savings.

How ASK Financial supports you with these Government Grants and Schemes?

Although purchasing your first home is an important milestone, the procedure may be intimidating. The knowledgeable mortgage broker at ASK Financials is here to guide you through the several first-home buyer schemes and subsidies that are offered across Australia.

Simplified procedures and professional advice

ASK Financials provides complete assistance, from figuring out your eligibility to taking care of all the required documentation. Our knowledgeable staff makes sure you don’t overlook any crucial stages by offering individualised guidance based on your financial circumstances and aspirations to become a homeowner. The procedure goes more easily and is less stressful thanks to this thorough assistance.

Many possibilities for home loans

Having access to a large selection of home loan programmes is one of the main advantages of dealing with ASK Financials. We assist you in obtaining the best possible offer, regardless of your preference for flexible repayment terms or the lowest interest rates.

Entire Purchase Support Services

To make the process of buying a house easier, we also provide comprehensive Buyer Support Services. Among these services are:

• individualised support along the course of your property hunt
• impartial assessments of properties and business knowledge
• advice for improving your search parameters and comprehending market data
• assistance with the offer and auction procedures

Clients who have a pre-approved home or investment loan with ASK FINANCIALS are eligible for these services at no cost, guaranteeing that you will get individualised assistance free from conflicts of interest.

The Process of Understanding Australian First Home Buyer Schemes and Grants

The process of achieving homeownership can be significantly simplified by comprehending the various grants and initiatives that are available. ASK Financials assists you in evaluating the available options, ensuring that you satisfy the eligibility requirements and make well-informed decisions, ranging from the First Home Guarantee to other national support schemes.