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Australia's First Home Owners Grant

Co-author: TJ Ryan

What is the First Home Owners Grant and is it available where you live?

What is the First Home Owners Grant?

The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist home ownership across the country, and for eligible borrowers it’s a great start to life as a property owner. The grant differs in each state and territory and in most places it applies to new homes only.

Here’s a breakdown of what is available to help you on your way towards raising your deposit.

New South Wales

From 1 July 2017, the NSW government announced several reforms to improve affordability for first home buyers. Chief among these are:

  • A $10,000 First Home Owner Grant for builders of new homes up to $750,000, and for purchases of new homes up to $600,000
  • No stamp duty for all homes up to $650,000
  • Stamp duty reductions on homes up to $800,000
  • No insurance duty on lender’s mortgage insurance

You must live in the home you buy for at least 6 months in the first year of owning the property in order to receive the grant (unless you work in the Australian Defence Force).

You may also be eligible for an exemption from transfer duty if you buy a new home valued up to $550,000, or vacant land up to $350,000. You can get a concession on the transfer duty for new homes valued between $550,000 and $650,000, or vacant land valued between $350,000 and $450,000.

Find out more here. You can preview the current home loans available on the market for first home buyers in New South Wales, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - NSW

Queensland

Queensland used to take our prize for the grant with the best name, but sadly, the Great Start Grant has been renamed to the Queensland First Home Owners’ Grant from 1 July 2016.

This grant offers $20,000 for eligible first home buyers who are buying or building a new home up to the value of $750,000 – including off-the-plan homes. This amount applies to all building or purchasing contracts signed between 1 July 2016 and 31 December 2017; for contracts signed of this period, the Grant amount reverts back to the original $15,000.

Find out more about eligibility conditions here. You can preview the current home loans available on the market for first home buyers in Queensland, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - QLD

Northern Territory

In the top end, the Northern Territory offers several generous incentives to first home buyers:

  • A First Home Owner Grant of a whopping $26,000 for first home buyers buying or building a new home or an established home (from 24 May 2016). No purchase price limit applies to new homes bought after 1 January 2015.
  • A First Home Owner Discount on stamp duty of up to $23 928.60, for first home buyers purchasing an established home valued up to $650,000.
  • A Home Renovation Grant of up to $10,000 for eligible recipients of the above First Home Owner Discount.
  • A Household Goods Grant of up to $2,000 for purchase of household goods, granted to eligible recipients of the First Home Owner Grant.

Find out more here. You can preview the current home loans available on the market for first home buyers in Northern Territory, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - NT

Western Australia

In the west, eligible first home buyers can receive a First Home Owner Grant of up to $10,000 for buying or building a new home. Homes south of the 26th parallel (i.e. all of the Perth metropolitan area) can have a purchase price of up to $750,000, whereas homes located north of the 26th parallel can be valued up to $1 million.

On 27 December 2016, the Government announced a temporary $5,000 boost to the FHOG, for a total of $15,000. Eligible first home buyers who enter into a contract between 1 January and 30 June 2017 to purchase or construct a new home will receive this boost.

Eligible first home buyers can also apply for the Home Buyers Assistance Account, which is a grant of up to $2,000 to cover the incidental expenses of purchasing an established or partially built home through a licensed real estate agent. It is available for properties with a purchase price of up to $400,000.

Find out more here. You can preview the current home loans available on the market for first home buyers in Western Australia, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - WA

South Australia

On offer in SA is a $15,000 grant for new residential dwellings only, up to the value of $575,000. You must live in the property for at least 6 months in the first year of owning it to be eligible for the grant.

If you are buying an off-the-plan apartment that meets the required criteria, you may also be eligible for an Off-the-plan Concession on stamp duty, which is capped at $21,330.

South Australia also has grants of up to $7,000 for established homes, depending on the area and buyer. Read the terms and conditions to figure out which one is right for you.

Find out more here. You can preview the current home loans available on the market for first home buyers in South Australia, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - SA

Source: RevenueSA

Victoria

Victoria offers a grant of up to $20,000 for first home buyers buying a new home in regional Victoria, or up to $10,000 for homes in cities. The maximum purchase price of eligible new homes is $750,000.

In addition, first home buyers may be eligible for various concessions on their stamp duty:

  • Both new homes and established homes are eligible for a first home buyer duty reduction of up to 50% if the home is valued at $600,000 or less.
  • New and established homes valued up to $550,000 are eligible for a principal place of residence (PPR) concession if you intend to live there as your primary home.
  • First home buyers with a family (at least one dependent child) may be eligible for a duty concession on a property valued at up to $200,000.
  • Off-the-plan properties and refurbished lots are eligible for an off-the-plan duty concession.
  • Young farmers buying their first farmland property are eligible for the young farmer’s exemption or concession.

Find out more here. You can preview the current home loans available on the market for first home buyers in Victoria, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - VIC

Source: SRO Victoria

ACT

As of 1 January 2017, homes in our national capital are offered a $7,000 First Home Owner Grant, down from $10,000 in 2016. This applies to first home buyers of new, substantially renovated, or off-the-plan properties valued at up to $750,000. You must live in the property for at least 1 year within the first year of owning it.

ACT first home buyers may also be eligible to defer payment of duty, if they are also eligible for the First Home Owner Grant.

Find out more here. You can preview the current home loans available on the market for first home buyers in ACT, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - ACT

Tasmania

In the Apple Isle, from 1 January 2016 to 30 June 2018, the First Home Owner Grant is $20,000 for buying a new home, “spec” home, off-the-plan home, or owner/builder home. After 30 June 2018, the grant will revert to being just a $10,000 payment – so the savvy first home buyer will have to get in quick!

Find out more here. You can preview the current home loans available on the market for first home buyers in Tasmania, for a variable loan amount of $500,000 in the table below.  Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).

Compare First Home Buyer Home Loans - TAS

A final tip on the First Home Owners Grant

Grants and concessions on stamp duty have a tendency to change, sometimes without a lot of notice. Keep up to date with what’s available in your state and thoroughly double-check eligibility requirements before you buy. Asking questions now could save you from tears later!

Compare how mortgage products from different institutions measure up across Australia with our latest First Home Buyer Award report or compare home loans for First Home Buyers on our website.

Get an idea of how much you can borrow via our easy-to-use Home Loan Borrowing Power Calculator, or get started comparing home loans for first home buyers:

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