Building your first home? Here are the schemes you’re eligible for

Getting your first home loan can be a daunting task, but we are here to help you.
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Alt text: White and red wooden house beside a grey-framed magnifying glass, both sitting on top of house schematics

Building a new home can be a long and exhausting process, not to mention an expensive one. And when you’re a first home buyer, the stress of planning, saving and spending can make this process incredibly overwhelming.

Fortunately, first home buyers are eligible for a range of first home buying schemes that can ease the pressure of building your first home. These schemes often apply to buyers completing a knock-down rebuild, buyers purchasing vacant land to build on or off-the-plan homes.

In this article, we’ll take a look at the different first home buying schemes available to first home buyers who are building their first home. We’ll also look at other discounts and offers first home buyers can use to save thousands on their homes, such as stamp duty concessions. Finally, we’ll take you through your next steps, so you know who can support you or help you find out more:

  • First Home Owner Grant by state and territory
  • First Home Loan Deposit Scheme (or New Home Guarantee)
  • Stamp Duty Concessions by state and territory
  • What are your next steps?

First Home Owner Grant by state and territory

The First Home Owner Grant gives first home buyers a grant between $10 000 and $20 000 (depending on their location and other factors) that they can use towards buying or building their first home. This grant takes the form of a cash payment made by the relevant state or territory government to the first home buyer/s.

Generally, buyers must be over 18 years of age and Australian citizens or permanent residents to be eligible. However, the eligibility criteria and benefits of this grant vary between states and territories. Check out the states and territories offering this scheme below to see if you qualify:

New South Wales

  • $10 000 towards buying or building a new home
  • Substantially renovated properties must be valued at $600 000 or less
  • Vacant land must be valued at $750 000 or less
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Queensland

  • $15 000 to buyers purchasing, building or substantially renovating a home
  • Must be valued at $750 000 or less (including off-the-plan homes)

Victoria

  • $10 000 for buyers purchasing or building a home in city/metropolitan areas
  • $20 000 for buyers purchasing or building a home in rural/regional areas
  • The contract price must be $750 000 or less (applies to all property types)  

South Australia

  • $15 000 for buyers purchasing or building a new home
  • Property must be valued at $575 000 or less

Western Australia

  • Up to $10 000 for buyers purchasing or building a new home
  • Homes south of the 26th parallel (including all of the Perth metropolitan area) must be valued at $750 000 or less
  • Homes north of the 26th parallel must be valued at $1 000 000 or less
  • First homeowner rates may apply

Tasmania

  • $20 000 for buyers purchasing or building a new home (kit-home, owner-builder home, etc.)

Northern Territory

  • $10 000 grant for buyers purchasing or building a new home

First Home Loan Deposit Scheme (or New Home Guarantee)

The First Home Loan Deposit Scheme, or New Home Guarantee as of May 2021, is a scheme that will be offered to 10 000 first home buyers over the next financial year. It allows first home buyers to buy or build a new home sooner with as little as a 5% deposit.

You can apply for this scheme as a single or couple and will have your income assessed accordingly to determine if you’re eligible. You must also prove that you:

  • Are at least 18 years old
  • An Australian citizen
  • Haven’t owned property in Australia before
  • Can meet the 5% deposit requirement
  • Meet the income requirements
  • Move into the property within six months of settlement and continue to live in the property for as long as you’re covered by the scheme/guarantee

Currently, there are 27 lenders participating in this scheme. For more information about this scheme and where you can apply, visit the National Housing Finance and Investment Corporation page or send a quick message to one of our brokers for personalised financial advice.

Stamp Duty Concessions by state and territory

Many states and territories are also offering stamp duty concessions for first home buyers if you’re building your first home. Although this discount isn’t directly related to building your first home, it could save you thousands on your total building cost.

It’s important to note that the states that don’t offer stamp duty concessions usually have other schemes you may be eligible for. Check out Queensland and Western Australia’s other first home buying schemes to see what’s on offer.

Generally, eligible concession buyers must be 18 years old or older and an Australian citizen or permanent resident. Again, these concessions vary greatly between states and territories. Check out our quick summary of the concessions available in each state and territory and where you can find out more about them:

New South Wales

  • Full exemptions on stamp duty for new homes valued at less than $800 000 and vacant land valued at less than $400 000
  • Partial exemptions on stamp duty for new homes valued between $800 000 and $1 000 000 and vacant land valued between $400 000 and $500 000

Victoria

  • Full stamp duty exemption for properties valued at $600 000 or less
  • Primary Place of Residence (PPR) Concession for homes valued at $550 000 or less (must be buyer’s primary place of residence, other conditions apply.)
  • 50% discount on stamp duty for residential homes valued at $1 000 000 or less
  • Stamp duty concession or full exemption for families buying a property valued at $200 000 or less
  • Stamp duty concession or full exemption for young farmers (under 35) buying a property valued at $750 000 or less
  • Off-the-plan duty concessions for off-the-plan homes
  • Stamp duty concessions or exemptions for eligible pensioners  

Tasmania

  • Up to a 50% discount on stamp duty for properties valued at $400 000 or less
  • Properties valued between $400 000 and $500 000 may still be eligible

Northern Territory

  • $18 601 discount on stamp duty on properties valued at $650 000 or less
  • Must be your primary place of residence for six months

Australian Capital Territory

  • Full stamp duty discount on any residential property type
  • Buyer’s income/s must be below the income threshold

What are your next steps?

Although these schemes are exciting ways to make building your first home more affordable, they can be complicated and overwhelming. Our mission is to take the pressure off you by handling the complicated parts of buying your first home so you can focus on what really matters to you.

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As experienced mortgage brokers, we specialise in services for first home buyers. We can help you research and compare home loans from over 30 lenders, prepare your application and communicate with lenders so you don’t have to. We’ll advise you on the best first home buying schemes for your situation, as well as give you personalised financial advice at every step of your home buying journey.  And if you manage to secure a home loan with us, we’ll help a family doing it tough in Australia or the Asia Pacific get a home, too.

So, send us a quick message, give us a phone call or schedule a consultation or even apply online for personalised advice regarding your financial situation.

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstances and requirements.