Home owner grants and incentives: what am I eligible for?

Getting into the property market is one of the most significant financial steps you’ll ever make. It can be a daunting (and expensive) move for first home buyers but help is at hand in the shape of various government grants and incentives.

Trying to get your head around what offers are on the table – and what you might be eligible for – can be a bit confusing. And to make matters even trickier, these schemes are constantly evolving with rule changes almost every year. So, to work out the what, where and who of these grants and incentives, Rawson Homes explains the financial fine print in this comprehensive guide. 

Decoding the First Home Owner Grant 

The First Home Owner Grant is a one-off government payment to help first home buyers get into the market and looks a little different in each state and territory. Currently there is no similar grant in the ACT, however the Territory does offer tax exemption and concessions for first home buyers (see the Home Buyer Concession Scheme below). 

In NSW, when the grant was introduced in 21 years ago, it could be used for the purchase of any type of home, but today the scheme is only applicable for people buying brand-new homes, building one, or purchasing a residence that has been substantially renovated by the seller but not been lived in since the renovation.

Understanding the numbers behind the grant 

If you’re buying or building your first home you may be eligible for the $10,000 First Home Owner Grant (New Homes) which can be applied for here when you’re organising home loan finance through. 

If you decide to buy a newly built house, townhouse, or apartment, the home’s purchase price can’t exceed $600,000. However, if you go down the path of buying vacant land and signing a contract with a builder such as Rawson Homes, then the combined value of the land and building contract must not be more than $750,000. 

Who can apply for the grant? 

Just as the name suggests, you need to be buying your first home to qualify for the grant. The home in question must be owned or co-owned by you or your spouse; you have to move into it within 12 months of purchasing the home, and live there for at least six continuous months. Applicants also need to be over 18 years old and be a citizen or a permanent resident of Australia. 

Using the grant as a deposit 

Fortunately, you can put your First Home Owner Grant towards your home loan deposit, but unfortunately $10,000 isn’t going to be enough to cover the full amount needed. Most lenders expect a 20% deposit, so you’ll need additional savings. The good news is, the First Home Loan Deposit Scheme (see below) can help you side-step that 20% figure and help you get into the market sooner.



Stamp duty exemption or concession 

Taxes are a necessity of life, but some eligible first home buyers can avoid the costly levy. Despite all property purchasers being required to pay a state or territory tax called stamp duty (also known as transfer or conveyance duty), as a first home buyer you may be exempt, or entitled to a discount. 

First Home Buyers Assistance Scheme (NSW) 

Under NSW’s First Home Buyer Assistance Scheme, purchasers of an existing home, a new home or vacant land on which to build a home, could get out of paying duty, or at least only pay a portion. The type of property you buy, and how much it costs, will impact the final fees. To crunch the numbers, visit First Home Buyers Assistance Scheme calculator.  

Fees for new homes 

If your home is valued at less than $650,000, you can apply for a full exemption and pay no transfer duty in NSW. However, if your new home is valued between $650,000 and $800,000, you can apply for a concessional rate and only pay a portion based on the home’s value. 

Fees for vacant land 

First home buyers of vacant land in NSW won’t have to pay transfer duty at all if the purchase price is less than $350,000. For land valued between $350,000 and $450,000, you’ll need to pay a concessional rate. 

Fees for existing homes 

For first home buyers purchasing an existing home in NSW valued at less than $650,000, you won’t have to pay transfer duty. For homes priced between $650,000 and $800,000, a concessional rate applies. Above $800,000, the full fee applies. 

Home buyer concession scheme (ACT) 

While the ACT has no grant for first home buyers, it does have a duty concession scheme. The program is open to buyers of new and existing properties as well as vacant land. Rather than being subject to the purchase price of the property, the ACT’s scheme is calculated on the first home buyer’s income, which can be calculated here. 

All buyers, including their partners, must not have owned property in the last two years, however this offer is limited and should be verified with the ACT Revenue Office. 

Buying your first home is one of life’s biggest milestones, and while it’s an exciting step, it can also feel overwhelming. The good news is there’s support available. A range of government grants and incentives can help make getting into the property market more achievable for first home buyers.

Trying to get your head around what offers are on the table – and what you might be eligible for – can be a bit confusing. And to make matters even trickier, these schemes are constantly evolving with rule changes almost every year. So, to work out the what, where and who of these grants and incentives, Rawson Homes explains the financial fine print in this comprehensive guide.  

First Home Loan Deposit Scheme 

The deposit is often the biggest hurdle for many first home buyers, so that’s why the Federal government brought in the First Home Loan Deposit Scheme. While it isn’t a cash handout, it’s a guarantee to help first home buyers get into a home loan sooner. 

Effectively, the Government partially guarantees 10,000 low-deposit home loans each year on behalf of low- and middle-income earners. These first home buyers need to have saved a 5% deposit, which historically hasn’t been enough to get you into a mortgage without the need to pay thousands of dollars in lender’s mortgage insurance (LMI). 

Under this Scheme, the costly LMI can be avoided while part of your home loan will be guaranteed by the National Housing Finance and Investment Corporation. The loan, however, needs to be from a participating lender. 

As with most government schemes, there are eligibility requirements. Your mortgage needs to be a principal-and-interest owner-occupier loan and you can't be earning more than $125,000 a year as an individual (or $200,000 as a couple). The value of the home also comes into play, so check out the price thresholds. 

Family Home Guarantee 

Although most government grants and incentives are aimed at first home buyers, a different scheme came onto the scene in early 2021. Much like the First Home Loan Deposit Scheme, the Family Home Guarantee backs the loans of single parents with dependents. The program is on offer for any parent looking to build a new home, or buy an existing home, with a deposit of just 2%. 

Every little bit of financial assistance helps when you’re looking to buy your home or invest in your future, so it helps to stay up to date with government schemes. To find out how you can me your dream home a reality, talk to Rawson Homes by calling 1300 223 345.