When to Access Government Grants for First Home Buyers

Understanding First Home Buyer Support in Australia

Buying your first home is an exciting milestone, but it can feel overwhelming when you're trying to understand all the assistance available. The Australian government offers several schemes and grants designed specifically to help first home buyers overcome financial barriers and enter the property market sooner.

If you're wondering whether you qualify for government support, understanding these programs is essential for making informed decisions about your first home loan application. Let's explore the key schemes that could help you achieve homeownership.

First Home Owner Grants (FHOG)

The first home owner grants provide eligible buyers with a one-off payment to assist with purchasing or building their first home. Each state and territory administers its own version of the FHOG, with varying amounts and eligibility criteria.

Typically, you'll need to:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Never have owned property before
• Live in the property as your principal place of residence for a specified period
• Meet the property value threshold for your state or territory

The grant amounts differ across Australia, so checking your state's specific requirements is crucial when planning your first home buyer budget. At Empire Road Investments, our team stays current with these requirements to help you access every benefit you're entitled to.

First Home Buyer Stamp Duty Concessions

Stamp duty can represent a significant cost when purchasing property. Fortunately, all Australian states and territories offer first home buyer stamp duty concessions that can either reduce or completely waive this expense.

These concessions vary considerably:

• Some states offer full exemptions below certain property values
• Others provide partial discounts on a sliding scale
• Property value thresholds differ between states
• New builds versus established homes may have different concessions

Understanding your state's stamp duty concessions can save you thousands of dollars, making homeownership more achievable. When you apply for a home loan through our team, we'll help you factor these savings into your overall purchase strategy.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme (formerly the First Home Guarantee) is a federal government initiative that helps eligible first home buyers purchase a property with a smaller deposit. This scheme allows you to secure a home loan with just a 5% deposit without paying Lenders Mortgage Insurance (LMI).

Under normal circumstances, a deposit below 20% would require LMI, adding thousands to your upfront costs. Through this scheme, the government guarantees up to 15% of the property value, eliminating this expense.

First home buyer eligibility for this scheme includes:

• Being an Australian citizen aged 18 or over
• Earning below the income threshold ($125,000 for individuals or $200,000 for couples)
• Purchasing a property below the regional price cap
• Not having previously owned property in Australia

This scheme offers significant low deposit options that can accelerate your journey to homeownership. Places are limited each financial year, so timing your first home loan application appropriately is important.

Regional First Home Buyer Guarantee

The Regional first home buyer Guarantee operates similarly to the standard scheme but specifically targets properties in regional areas. This program recognises the unique opportunities and challenges in regional property markets.

Key features include:

• Access to 5% deposit home loans without LMI
• Higher property price caps in some regional locations
• Separate allocation of places from the standard scheme
• Support for those looking to establish themselves in regional communities

If you're considering regional property, this scheme could provide the support needed to make your purchase happen sooner.

First Home Super Saver Scheme

The first home super saver scheme allows you to save for your deposit inside your superannuation fund, where your savings benefit from the concessional tax treatment of super. You can contribute up to $15,000 per financial year, with a total cap of $50,000, then withdraw these contributions (plus earnings) to put towards your first home.

Benefits include:

• Tax advantages on your savings
• Potential for higher returns than standard savings accounts
• Discipline in building your deposit over time
• Flexibility to use voluntary contributions

This scheme works particularly well when combined with other strategies like accepting a gift deposit from family members, helping you reach your deposit goal faster.

Home Loan Options for First Home Buyers

Once you understand the government assistance available, you'll need to consider your home loan structure. The right Home Loan options can make a substantial difference to your financial position over time.

Important features to consider include:

Interest Rate Types

• Variable interest rate: Fluctuates with market conditions, offering flexibility and potential interest rate discounts
• Fixed interest rate: Locked for a set period, providing certainty in your repayments
• Split loans: Combining both fixed and variable portions

Loan Features

• Offset account: Links to your loan to reduce interest charged
• Redraw: Allows access to extra repayments you've made
• Repayment flexibility: Options to make additional repayments

Your first home buyer checklist should include researching these features and determining which align with your financial goals and circumstances.

Getting Pre-Approval

Before you start seriously house hunting, obtaining pre-approval gives you confidence about your borrowing capacity. Pre-approval involves a lender assessing your financial position and indicating how much they're willing to lend you.

This process typically requires:

• Proof of income and employment
• Details of your savings and deposit (including any 10% deposit or 5% deposit you've accumulated)
• Information about your expenses and existing debts
• Identification documents

Pre-approval usually lasts between 90 to 120 days and demonstrates to vendors that you're a serious buyer with finance arranged.

Working with Empire Road Investments

Understanding government schemes and finding the right home loan can be complex, especially when you're doing it for the first time. At Empire Road Investments, we specialise in helping first home buyers throughout Australia access the support and finance they need.

Our service includes:

• Assessing your eligibility for government schemes and grants
• Comparing home loan products from multiple lenders
• Explaining how different interest rate structures affect your repayments
• Managing your first home loan application from start to finish
• Providing guidance on your first home buyer budget and affordability

We work with clients across Australia, understanding the specific requirements and opportunities in each state and territory. Whether you're looking at regional properties or metropolitan areas, our team can help you access the most suitable finance solutions.

Making your first property purchase doesn't need to be complicated when you have experienced professionals supporting you. From understanding Lenders Mortgage Insurance (LMI) to accessing government concessions, we'll guide you through each stage of the process.

Ready to take the next step towards homeownership? Call one of our team or book an appointment at a time that works for you. Let's discuss how we can help you access the grants, schemes and home loan products that suit your circumstances and goals.