First Home Buyers Scheme: How To Get Your Dream Home
If you want to buy a home in Australia, finding a first home buyers scheme that fits your situation may help reduce the cost of your purchase. Buying a first home in Australia is, after all, a significant milestone and many first-time buyers face challenges such as rising property prices and substantial deposit requirements.
To assist in overcoming these hurdles, the Australian government has introduced various schemes to help make homeownership more accessible. While there isn’t one single grant called the “First Home Buyers Scheme,” several programs embody this moniker by assisting first-time buyers.
Understanding the Home Guarantee Scheme (HGS)
One key initiative is the Home Guarantee Scheme (HGS), which includes the First Home Guarantee (FHBG). This federal initiative, administered by Housing Australia, allows eligible first-time buyers to purchase a home with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). Housing Australia guarantees the lender up to 15% of the property’s value, helping buyers avoid the additional cost of LMI.
Key Features of the FHBG
- Availability: For the financial year 2024-25, there are 35,000 spots available under the FHBG. However, it’s worth noting that if the scheme places are exhausted, eligible applicants can still submit a reservation request.
- Property Price Caps: Price caps vary by region.
- QLD: $700,000 in Brisbane, $550,000 in regional areas
- VIC: $800,000 in Melbourne, $650,000 in regional areas
- NSW: $900,000 in Sydney, $750,000 in regional areas
- Eligibility Criteria:
- Income thresholds: $125,000 for singles and $200,000 for couples.
- Applicants must be first-time buyers or individuals who have not owned property in the past 10 years.
Other First Home Buyer Schemes
It’s essential to understand that there is more than one first home buyers scheme for you to look into. These variants may exist with different names and benefits across states and territories. Here are some of them:
First Home Owner Grant (FHOG) / First Home Buyers Grant (FHBG)
- Existence: Real, but terminology varies by state.
- Key Features: Lump-sum payment (e.g., $10,000 in VIC for new builds under $750,000). Available in QLD, WA, TAS (commonly called First Home Owners Grant or FHOG). In NSW & VIC, it’s often referred to as First Home Buyers Grant or FHBG.
- Comparison with FHBG: FHOG provides cash grants, while FHBG eliminates LMI and deposit hurdles.
First Home Super Saver Scheme (FHSSS)
- Existence: Real (federal scheme).
- Purpose: Allows voluntary super contributions to save for a home deposit.
- Key Features: Withdraw up to $50,000 of voluntary contributions to fund a home deposit. Provides tax benefits by allowing pre-tax contributions.
- Comparison with FHBG: The First Home Super Saver Scheme or FHSSS helps with tax-efficient savings, while FHBG reduces the deposit requirement.
First Home Buyers Assistance Scheme (FHBAS) – NSW
- Existence: Real (state-based in NSW).
- Purpose: The First Home Buyers Assistance Scheme (FHBAS) provides stamp duty exemptions or concessions on first home purchases.
- Key Features: Full exemption for new homes valued up to $800,000 and existing homes up to $650,000. Concessions apply for homes valued between $800,000 and $1 million.
- Comparison with FHBG: FHBAS reduces upfront stamp duty costs, while FHBG helps with the deposit.
Note on FHBAS: First Home Buyers Assistance Scheme (NSW) vs. First Home Concession (QLD)
In QLD, the First Home Concession reduces stamp duty on homes under $550,000:
- No stamp duty for homes $500,000 or less
- Discounted stamp duty for homes $500,000–$550,000
- Owner-occupied only
This differs from NSW’s First Home Buyers Assistance Scheme (FHBAS), which has different price caps. Buyers in Brisbane may also combine this concession with grants like the First Home Owner Grant (FHOG) or First Home Guarantee (FHBG) to maximise savings.
Scheme Comparison
| Scheme | Type | Key Benefit | Limitations |
| FHBG (HGS) | Federal | 5% deposit, no LMI | Price and income caps; limited annual spots |
| FHBAS (NSW) | State | Stamp duty savings | Only available in NSW; property value thresholds apply |
| FHOG/FHBG | State | Cash grant ($10k–$30k) | Available for new builds only in most states |
| FHSSS | Federal | Tax-effective savings | Annual contribution limits; complex withdrawal rules |
Which First Home Buyers Scheme in Brisbane Should You Choose?
If you’re a first-home buyer in Brisbane, several government schemes can help you purchase a home sooner and reduce upfront costs. Here are your options:
First Home Owner Grant (FHOG)
Provides a $30,000 grant for buying or building a new home under $750,000. Available until 30 June 2025.
First Home Guarantee (FHBG – HGS)
Allows eligible buyers to purchase with a 5% deposit without paying LMI. The property price cap for Brisbane is $700,000.
First Home Concession
Offers stamp duty savings for homes under $550,000 when used as your primary residence.
First Home Super Saver Scheme (FHSSS)
Helps buyers save for a deposit through superannuation, with up to $50,000 in voluntary contributions eligible for withdrawal.
Each scheme targets different financial needs – whether it’s reducing your deposit, cutting stamp duty or boosting savings through tax benefits. Also, some schemes can be combined, so check which ones these are.
Check your eligibility for these schemes by speaking with one of our experienced mortgage brokers here at North Brisbane Home Loans so you can maximise your benefits. Contact us to know which first home buyers scheme is ideal for you and to start your home ownership journey with all the information necessary to make an informed decision.
Patrick Cranshaw, a Certified Mortgage Professional for over 21 years, founded North Brisbane Home Loans in 2002. His career began with ANZ Bank in New Zealand, where he progressed over 16 years to a Business Banking role in Virginia. After moving to Brisbane in 2000, Patrick led the QLD market for a home loan agency, helped set up the REMAX Real Estate Finance division, and practiced as a broker.
