Unlocking Government Support for First Home Buyers
Purchasing a home in Australia is backed by several government financial incentives designed to help first-time buyers overcome initial deposit and tax barriers. However, because housing incentives are split between federal programs and individual state or territory grants, understanding which incentives apply to your purchase can feel overwhelming.
In this guide, CREdQ outlines how the First Home Owner Grant (FHOG), state transfer duty (stamp duty) concessions, and Housing Australia guarantee programs work in practice.
1. What Is the First Home Owner Grant (FHOG)?
The FHOG is a national scheme funded by state and territory governments and administered under local revenue legislation. The grant provides a one-off tax-free cash sum to eligible first home buyers purchasing or constructing a brand-new residential property.
- New Builds & Off-the-Plan: In most states (such as NSW, VIC, and QLD), the grant applies specifically to newly built homes, substantially renovated dwellings, or off-the-plan residential contracts that have never been previously occupied.
- Established Homes: In most states, established (existing) homes do not qualify for the cash FHOG grant, but buyers can still access stamp duty waivers and federal 5% deposit schemes.
2. State-by-State Grant Summaries
| State | Grant Amount | Property Value Cap | Eligible Property Types |
|---|---|---|---|
| NSW | $10,000 | $600,000 (new home) / $750,000 (build) | New homes & comprehensive build contracts. |
| VIC | $10,000 | $750,000 | New homes & house/land packages. |
| QLD | $30,000 | $750,000 | New builds & off-the-plan contracts. |
3. Combining Federal Schemes with State Grants
First home buyers do not have to choose between a grant and a low-deposit guarantee. Eligible buyers can combine multiple incentives simultaneously:
- First Home Guarantee (FHBG): Purchase with a 5% deposit and zero LMI under Housing Australia. (See Step 2: Deposits & LMI Guide).
- State Stamp Duty Waiver: Save up to tens of thousands of dollars in transfer duty tax. Check thresholds using our Stamp Duty Calculator.
- FHOG Cash Grant: Applied directly at loan settlement to offset your deposit shortfall.
- First Home Super Saver (FHSS) Scheme: Withdraw voluntary superannuation contributions with tax savings to boost your cash deposit.
4. Key Eligibility Criteria to Remember
- Occupancy Requirement: You must move into the property within 12 months of settlement and reside there continuously for at least 12 months (or 6 months in select states).
- Prior Property Ownership: You (and your spouse/partner) must not have previously owned residential property in Australia.
- Age & Citizenship: Applicants must be Australian citizens or permanent residents aged 18 or over.
How CREdQ Helps You Claim Your Grants
When applying for a home loan through a CREdQ mortgage specialist, we lodge your state FHOG and First Home Guarantee scheme applications directly alongside your bank loan paperwork. This ensures all government funds are approved and ready prior to settlement day.