For many people, buying a home is one of the biggest financial decisions ever. In Australia, the government offers several programs to help make homeownership more attainable for first-time buyers and low-income individuals. These government-sponsored mortgage programs can provide financial assistance, lower interest rates, and other benefits to eligible homebuyers. Let's explore the most well-known homebuyer programs in Australia.
First Home Buyer Assistance Scheme
First home buyers may be able to pay reduced or zero transfer duty on their first home, based on the purchase price. This scheme covers purchasing an existing home, buying a new home, or buying vacant land to build on. Check your eligibility for the First Home Buyer Assistance Scheme at Revenue NSW.
First Home Owner (New Homes) Grant
If you are purchasing your first home and it is newly built, off the plan, substantially renovated, or vacant land to be built on, you might qualify for a $10,000 grant to assist with your purchase, depending on the value of the property. Learn more about the First Home Owner (New Homes) Grant at Revenue NSW.
Shared Equity Home Buyer Helper
Eligible home buyers can purchase a home with as little as a 2% deposit, with the NSW Government contributing a portion of the purchase price in exchange for an equal interest in the property. This program is open to:
- single parents of dependent child or children,
- single individuals aged 50 years or older, and
- first home buyer key workers such as nurses, midwives, paramedics, teachers, early childhood educators, and police officers.
Check your eligibility and how to apply for the Shared Equity Home Buyer Helper at Revenue NSW.
First Home Buyer Choice
As of July 1, 2023, the First Home Buyer Choice (FHBC) program will be discontinued. First-time home buyers who have exchanged contracts on or before June 30, 2023 will be given until settlement to opt into FHBC. Those who have already opted in will remain unaffected. Find out more about First Home Buyer Choice at Revenue NSW.
First Home Super Saver Scheme
Allows individuals to utilise their superannuation fund to save for a home purchase, potentially providing tax benefits. Eligible individuals can request to use a maximum of $15,000 from their voluntary contributions in any given financial year, with a total cap of $50,000 across all years. Additional conditions also apply. Other conditions apply. Learn more about the First Home Super Saver Scheme at the Australian Taxation Office.
The Home Guarantee Scheme
Enables qualified buyers to buy or construct a new home with a deposit of only 5%, or just 2% for eligible single parents, without requiring lenders' mortgage insurance. Learn more about the Home Guarantee Scheme at the National Housing Finance and Investment Corporation.
It's important for prospective homebuyers to thoroughly research and understand the eligibility requirements, benefits, and limitations of these government-sponsored mortgage programs. Additionally, seeking advice from a financial advisor or mortgage broker can help individuals make informed decisions about the program most suitable for their circumstances.
Government-sponsored mortgage programs in Australia are crucial in facilitating homeownership for a wider range of individuals. By utilising these programs, eligible homebuyers can access financial assistance, lower deposit requirements, and other support to make the dream of owning a home a reality.
Need help paying off your mortgage sooner? Join the Grow My Money mortgage cashback program. It's free to join and can help you pay down your mortgage faster.
This blog contains general advice only and does not take account of an individual’s objectives, financial situation or needs. Before acting on this general advice, individuals need to consider its appropriateness having regard to their objectives, financial situation or needs and should seek their own independent advice.