The First Home Owners Grant, (FHOG), was created in 2000 to promote the growth of Australia’s housing market.

This scheme allows first owners to build new homes and makes Australia’s economy more attractive.

FHOG is available in Australia. However, eligibility and criteria may vary from one state to the next. Each state has its laws and rules concerning the FHOG scheme. This means that if your purchase is not in Victoria you might have to follow other criteria.

The Victorian scheme currently grants $10,000 to new homebuyers who are either buying or building an apartment or unit off-the-plan within the Metropolitan area of Melbourne. People looking to build or purchase in regional areas will find greater incentives through the Victorian Government.

You can find out if you may be eligible for the FHOG using this handy tool.

Purchase in a region

The current regional First Home Owner Grant pays $20,000 to first-time buyers in Victoria who sign a contract to build or buy a home.

To determine what is classified as a regional area, you’ll need to visit the State Revenue Office website here to view a comprehensive list.

Stamp duty discounts

Stamp duty, a government levie that is charged when assets are bought such as property or vehicles, is called stamp duty. The amount that stamp duty applies to transactions varies depending upon where you live, how the transaction is being conducted, and it’s value.

The State Government is aware that purchasing a home may seem daunting for many first-time buyers. So they’ve changed stamp duty to help young buyers and first-time home buyers.

Stamp duty will be discounted if the property is purchased between $600,001-750,000. The price that you will have to pay for the property will rise with its purchase price.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme – Australia is an initiative launched by the Government to assist first-home buyers to purchase or build a new house sooner.

A 20% down payment was required for Sydney first home buyers to get mortgage insurance. The new scheme allows first home buyers with qualifying credit to purchase their new homes with as little as a 5 percent deposit depending on what their lender requires. While this scheme allows for up to 10,000 borrowers to use it each year, the government is now allowing 10,000 additional buyers to be eligible for the 2020/2021 fiscal year.

Home Builder Scheme

Scott Morrison, the Prime Minister of Australia, announced the Home Builder Grant during the peak of COVID-19. The Grant included a $25,000 grant for eligible homeowners, including first-home buyers.

The grant was originally intended to end in December 2020. However, it has been extended by the Government. To qualify for a reduced grant amount of $15,000., eligible owner-occupiers will need to sign a contract to build a new home or renovate an existing one.

If you meet all the eligibility criteria, you can apply for this grant in combination with other state grants like the First Home Owners Grant.

These Benefits: How to Make Your Advantage

Depending on your circumstance, you may be eligible for the First Home Owners Grant, the Homebuilder Grant, or the First Home Loan Loan Deposit scheme. You could save as much as $55k. That’s an incredible saving!

Your broker can be a great resource for helping you to understand the eligibility criteria and to access grants. Things can change quickly in this space, so it’s helpful to have someone who will help you navigate through each stage.

The property market seems to be moving forward even though we’re technically in the middle of global panic. According to the State Revenue Office’s data, even during stage 4 lockdowns, first-home owner payments rose 13 percent relative to the same period the year before.

Although some of us may have been affected by unexpected job losses, many people are also reflecting on their future living situations. In some cases, they have even been able to stay at home to save money. This is why the property market continues to be thriving for homebuyers.

Talk to one of agent  if you are thinking about purchasing your first house within the next 12 months. If possible, speak to a broker before purchasing your dream property. They can guide you through the process and may even help you get into your new home sooner than anticipated.