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You know what’s exciting right now? There are so many government grants and schemes up for grabs, and I wanted to take a moment to put together a list of these gems. Let’s be real, breaking into the housing market can be a tough nut to crack, but with these government goodies, it might just be the nudge you need to step into your dream home.
Find out below which scheme or grant is suitable for you.
1. First Home Guarantee
Buy your home with as little as 5% deposit and no Lenders Mortgage Insurance.
To be eligible you must:
- Applying as an individual or 2 joint applicants
- An Australian citizen(s) or permanent resident(s)* at the time they enter the loan
- At least 18 years of age
- Earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- Intending to be owner-occupiers of the purchased property
- First home buyers or previous homeowners who haven’t owned a property in Australia in the past ten years.
Deposit Required
Home buyers applying for the FHBG need to have between 5% and 20% of the value of an eligible property saved as a deposit. The minimum deposit required for the FHBG is 5%, but Participating Lenders may require a higher percentage deposit based on individual financial circumstances.
Home buyers should speak with a Participating Lender to find out whether a deposit is made up of genuine savings for the purposes of their lending criteria and the FHBG.
Home buyers should confirm with their Participating Lender whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of their genuine savings.
Property Types & Price Caps
Under the HGS, home buyers can buy a residential property, including:
- An existing house, townhouse, or apartment
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse.
Use the Property Price Cap Tool from Housing Australia to look up the property price caps for each location.
Specific timeframes and criteria apply to different property types. The contract of sale and (if applicable) eligible building contract may need to be executed by specific dates.
2. Family Home Guarantee
The Family Home Guarantee (FHG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home sooner. It is administered by Housing Australia on behalf of the Australian Government.
The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner. From 1 July 2023 – 30 June 2024, 5,000 FHG places are available.
Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance.
For the FHG, any Guarantee of a home loan is for up to a maximum amount of 18% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.
To apply for the FHG, home buyers must be:
- Applying as an individual
- A single parent or single legal guardian of at least one dependent (see Eligible Single Parent and Eligible Single Legal Guardian note below)
- An Australian citizen or permanent resident* at the time they enter the loan
- At least 18 years of age
- Earning no more than $125,000 per year
- Intending to be the owner-occupier of the purchased property
- NOT currently owning property, or upon settlement of the guaranteed property they’re buying, not intending to own a separate property.
Eligible Single Parent & Eligible Single Legal Guardian
To apply for the FHG, home buyers must:
- Be single. A person is considered single if they don’t have a spouse and/or a de facto partner. Note: a person who is separated but not divorced is not considered single
- Have at least one dependent. To have a dependent, they must be the natural parent or adoptive parent or legal guardian of:
- a “dependent child” within the meaning of subsections (2), (3), (4), (5), (6) and (7) of section 5 of the Social Security Act 1991; or
- a person in receipt of a disability support pension within the meaning of the Social Security Act 1991 who lives with you.
- They must show that they are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the dependent and the dependent is in their care.
Previous Home Ownership
FHG applicants can be either first home buyers or previous homeowners who do not intend to own a separate property upon settlement of the guaranteed property they’re buying.
Deposit Required
Home buyers applying for the FHG need to have between 2% and 20% of the value of an eligible property saved as a deposit. The minimum deposit required for the FHG is 2%, but Participating Lenders may require a higher percentage deposit based on individual financial circumstances.
Home buyers should speak with a Participating Lender to find out whether a deposit is made up of genuine savings for the purposes of their lending criteria and the FHG.
Home buyers should confirm with their Participating Lender whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of their genuine savings.
Property Types & Price Caps
Under the HGS, home buyers can buy a residential property, including:
- an existing house, townhouse or apartment
- a house and land package
- land and a separate contract to build a home
- an off-the-plan apartment or townhouse.
Use the Property Price Cap Tool to look up the property price caps for each location.
Specific timeframes and criteria apply to different property types. The contract of sale and (if applicable) eligible building contract may need to be executed by specific dates.
Have you seen our EmpowerHER Property Ownership Initiative? Kerryn from 28th Street Agency is helping a lucky women or single mum for free. Applications are now open
3. Regional. First Home Buyer Guarantee
The Regional First Home Buyer Guarantee (RFHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers to buy a home sooner. It is administered by Housing Australia on behalf of the Australian Government.
The RFHBG aims to support eligible regional home buyers to buy a home sooner, in a regional area. From 1 July 2023 – 30 June 2024, 10,000 RFHBG places are available.
Under the RFHBG, part of an eligible regional home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the RFHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. Eligibility criteria apply.
Buy your first home in a regional area with a deposit of as little as 5%.
To be eligible you must:
To apply for the RFHBG, home buyers must be:
- Applying as an individual or joint applicants
- An Australian citizen(s) or permanent resident(s)* at the time they enter the loan
- At least 18 years of age
- Earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- Intending to be owner-occupiers of the purchased property
- Home buyers who have not previously owned, or had an interest in, a property in Australia or in the ten years prior to the date they execute their home loan.
- First home buyers or previous homeowners who haven’t owned a property in Australia in the past ten years.
What is a regional area?
A regional area is defined as:
- The Statistical Area Level 4 (ASGS SA4 2016) areas in a State or the Northern Territory that are not a capital city of that State or Territory; and
- Norfolk Island; or the Territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands; as defined in the version published by The Australian Bureau of Statistics (ABS) in July 2016.
- The greater capital city areas of each state and the Northern Territory; and the entire Australian Capital Territory are excluded from the RFHBG. Home buyers in these areas may be eligible for the First Home Guarantee or Family Home Guarantee.
Access the Regional Checker – home buyers can enter the suburb (or postcode) of their current home and the suburb (or postcode) they would like to purchase in, to confirm if they would be eligible for the RFHBG.
Deposit Required
Home buyers applying for the RFHBG need to have between 5% and 20% of the value of an eligible property saved as a deposit. The minimum deposit required for the RFHBG is 5%, but Participating Lenders may require a higher percentage deposit based on individual financial circumstances.
Home buyers should speak with a Mortgage Broker to find out whether a deposit is made up of genuine savings for the purposes of their lending criteria and the FHG.
Home buyers should confirm with their Mortgage Broker whether any cash grants received under other Australian Government, State or Territory schemes or programs can be considered as part of their genuine savings.
Property Types & Price Caps
Under the HGS, home buyers can buy a residential property, including:
- An existing house, townhouse or apartment
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan apartment or townhouse.
Use the Property Price Cap Tool to look up the property price caps for each location.
Specific timeframes and criteria apply to the different property types. The contract of sale and (if applicable) eligible building contract may need to be executed by specific dates.
4. First Home Owner Grant
Get access to a one-off grant for the purchase or build of a new home.*
To be eligible you must:
- Not have owned property in Australia before
- Be an Australian citizen or a permanent resident of at least 18 years ag
- Be an owner-occupier, not a residential invest
- Meet all the eligibility criteria under this scheme.
*Application process and eligibility criteria vary by state or territory.
5. First Home Super Saver Scheme
Use your super to help save for your deposit.
To be eligible you must:
- Not have owned property in Australia before
- Be an Australian citizen of at least 18 years age
- Not previously had funds released from superannuation under this scheme
- Meet all the eligibility criteria under this scheme.
Need Further Information?
Get in touch with your mortgage broker to discuss these grants and see if you qualify. If you’re looking for a trusted broker, don’t hesitate to reach out to us, and we’ll connect you with our experienced broker.
Want to Get Started?
Book a free 15 min discovery call with Kerryn
Article by Kerryn Brownson: sourced from https://www.housingaustralia.gov.au/
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