Home buying schemes for the different property types in Australia

It’s safe to say that buying a home is one of the most exciting and important purchases that you’ll ever make. When there’s so many options, from where to live to what loan to take out, your possibilities are endless. But these options can also make the process more complicated and even overwhelming.

Understanding the different property types available in Australia and their availabilities can be really tricky, regardless of whether you’re a first home buyer or an experienced investor. But choosing the right property type for your situation will ensure you’re on track to achieving your short, medium and long term financial and personal goals.

Luckily, there are a range of home buying schemes that are on offer for a range of different property types in Australia. In this article, we’ll take you the government home buying schemes that apply to different property types. We’ll also explain where you can go next for more information and support:

• Quick definitions
• First Home Loan Grant
• The First Home Loan Deposit Scheme (or New Home Guarantee)
• First Home Super Saver Scheme
• Family Home Guarantee
• Stamp Duty Concessions
• What are your next steps?

Quick definitions

New homes

A property that no-one has previously lived in, sold or occupied for a short or long term period. This could be a house, apartment, townhouse, etc.

Existing homes

A home that has previously been sold and/or occupied on a short or long term basis. This could be a house, apartment, townhouse, etc.  

Substantially renovated homes

A property that has been significantly altered but is not new (e.g., knocked down and rebuilt, major interior and exterior renovations, etc.) This could be a house, apartment, townhouse, etc.

Buying or building on vacant land

Buying a house and land package, an off-the-plan home or a block of land and a separate building contract to construct a property.

First Home Owner Grant    

Available for: new homes, substantially renovated homes (conditions apply), vacant land

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 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:

• NSW: $10 000 towards buying or building a new home
• QLD: $15 000 towards buying or building a new home
• VIC: $10 000 towards buying or building a new home in a city or metropolitan area and $20 000 towards buying or building a new home in a rural or regional area
• SA: $15 000 towards buying or building a new home
• WA: $10 000 towards buying or building a new home
• TAS: $20 000 towards buying or building a new home
• NT: $10 000 towards buying or building a new home

First Home Loan Deposit Scheme (or New Home Guarantee)

Available for: new homes, substantially renovated homes (conditions apply), vacant land

The First Home Loan Deposit Scheme, or New Home Guarantee as of May 2021, is a scheme which 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 with as little as a 5% deposit in order for them to buy or build their dream home sooner.

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 how this scheme works 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 advice to suit your financial needs.

First Home Super Saver Scheme

Available for: new homes, existing homes, substantially renovated homes (conditions apply), vacant land

This scheme allows Australians to make extra contributions to their super funds. This could help you save for deposit faster, therefore getting your dream home sooner than you might when saving normally.

Through this scheme, buyers can make concessional (before tax) and non-concessional (after tax) contributions to their super funds. You can then apply to release these voluntary contributions, as well as other related earnings, in order to pay for your home loan deposit. Buyers can release up to $15 000 per year from their super funds for this purpose.

To be eligible for this scheme, you must:

• Live in the property or plan to live in it as soon as you’re able
• Move into the property within the first 12 months of securing it
• Live in the property for at least six months upon moving in

You can discover more about this scheme and apply for it through the Australian Taxation Office (ATO) website.

Family Home Guarantee

Available for: new homes, existing homes, substantially renovated homes (conditions apply), vacant land

If you’re a single parent looking to buy a home, you may be eligible for this scheme. With the Family Home Guarantee, you could be one of 10 000 single parents who buys a home with as little as a 2% deposit.

Over the next four years, the Australian Government is offering this scheme to 10 000 single parents. This scheme is open to all single parents with dependents at home, including first home buyers. To be eligible you must be at least 18 years old, an Australian citizen and have an annual taxable income of no more than $125 000.

For more information about the family home guarantee offer, check out this fact sheet from the National Housing Finance and Investment Corporation.

Stamp Duty Concessions

Available for: new homes, existing homes, substantially renovated homes (conditions apply), vacant land

Many states and territories are also offering stamp duty concessions for first home buyers if you’re building your first home. Although this discount is not 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, buyers must be 18 years old or older and an Australian citizen or permanent resident to be eligible for these concessions. 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?

Just like the range of property types, the range of home buying schemes is enormous. While it’s exciting to have so many avenues to go down on your home buying journey, this can also make the process more complicated and stressful as you try to determine your eligibility and communicate with lenders on your own.

That’s where we come in.

As an experienced ethical mortgage broker, we take the hard work out of home buying. We’re experts on all the current schemes and home loans on offer, and in just one quick message, we can answer all your burning questions – for free. We help our customers research and compare loans from over 30 lenders, prepare their applications and communicate with banks, so they can focus on what really matters. And when you 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 get in touch with us for an obligation-free chat to gain personalised financial advice to help make your decision.

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.