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General Information Only: This content and any calculators or tools provided are for general informational purposes only and do not constitute personal financial, legal, taxation, or professional advice. The information provided is based on Australian law and regulations as understood at the time of writing.
Not Financial Advice: The content does not take into account your individual objectives, financial situation, or needs. Before making any property purchase or financial decision, you should:
Verify all current information on official government websites, including:
- Australian Securities and Investments Commission (ASIC)
- Australian Taxation Office (ATO)
- State Revenue Offices (relevant to your state/territory)
- First Home Buyer Government Resources
Consult with licensed and qualified professionals before making decisions:
- Licensed Financial Adviser (for financial and investment advice)
- Licensed Conveyancer or Solicitor (for legal and property matters)
- Registered Tax Agent or Accountant (for tax implications)
- Licensed Mortgage Broker or Bank (for loan and finance matters)
Regulatory Compliance: Under Australian law, only individuals or entities holding an Australian Financial Services (AFS) licence or authorisation can provide personal financial product advice. This content and any tools provided do not constitute such advice.
Information Currency: Laws, regulations, government schemes, grants, tax rates, and lending criteria change regularly. Information and calculations provided may become outdated. Always verify current details through official government sources and licensed professionals before making decisions.
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Overview: FHOG and Other Homebuyer Schemes
Government schemes can help you buy a home sooner. Cash grants like the FHOG and loan guarantees are some of these. But these programs change often. Always check current rules on official websites. Inspecting a home carefully matters as much as the funding source. Whether you're making a new apartment checklist or buying a house, knowing these schemes is key.
Use these options alongside a home buying checklist, so you stay organised through pre-approval, searching, and settlement.
The main types of help are:
- Home Guarantee Scheme - Buy with less deposit. Skip mortgage insurance.
- Shared equity (Help to Buy Australia) - The government owns part of your home.
- Grants - Cash to help with your purchase.
- Super savings - Use your super to save for a deposit.
The 4 Main Government Assistance Programs Explained Simply
These are the key programs the federal government offers, including cash grants and Help to Buy Australia:
1. Home Guarantee Scheme (Key Federal Support Program)
What this guarantee program does: Lets you buy with a small deposit. The government backs your loan, so you skip mortgage insurance. This is one of the most popular assistance options.
Who can use it:
- First-time buyer applicants (and some others)
- Australian citizens or residents
- Must use an approved lender
- Property must be under the price cap
Good to know:
- Not all banks offer this option
- Rules change, so check with Housing Australia for current details
2. Shared Equity Programs (Help to Buy Australia)
What this program does: The government pays part of your home price. You need less deposit. But they own a share of your home.
Who can use it:
- Rules depend on the program
- Income and price caps may apply
- Check Treasury for updates: https://treasury.gov.au/
The trade-off: You give up some future profit. When you sell, you pay back market value. If your home goes up in value, the buy-out costs more. That trade-off is another decision point to weigh before signing. Watch for red flags when buying a house even when using federal schemes.
3. State Homebuyer Grants (FHOG)
What the FHOG does: The FHOG is a one-time cash payment. Most states offer this homebuyer grant for new homes only. This state grant is a core part of federal support programs.
Who can use it:
- First home buyers meet eligibility criteria
- Rules differ by state
- Check your state revenue office for details
Things to know:
- Most states only give the homebuyer grant for new builds
- Grant amounts vary by state
- You must live in the home to receive payment
4. First Home Super Saver Scheme (FHSS)
What it does: Save for your deposit through your super. Pay less tax on those savings.
Who can use it:
- First home buyers
- Must follow ATO rules
How it works:
- Put extra money into your super
- Apply to withdraw it for a home deposit
- Pay lower tax than normal savings
Check the ATO for current limits and rules.
Where to Check Your State's Rules
Each state has different grants and rules. Check these official sites:
- NSW: FHOG Grant
- VIC: Homebuyer Grant
- QLD: State Grant
- SA: FHOG
- WA: Homebuyer Grant
- TAS: First Home Buyers
- NT: Home Owner Assistance
- ACT: Home Buyer Assistance
Also see: firsthome.gov.au and housingaustralia.gov.au
When Federal Assistance Programs Save You Money
The Home Guarantee Scheme Can Help When:
- You have a small deposit (5-10%)
- You have stable income
- You want to avoid mortgage insurance
Example: On a $600,000 home with 5% deposit, you might save $15,000-$20,000 in insurance costs through the home guarantee scheme.
Be Careful With Shared Equity Programs
Help to Buy Australia shared equity gives you access sooner. But you give up part of your profit.
Simple example:
- You buy a $500,000 home using shared equity
- Government owns 30% ($150,000)
- Home grows to $700,000
- To buy out government: $210,000 (30% of new value)
The longer you wait to buy out, the more it can cost if prices rise.
Why Some Experts Worry
Some experts have concerns about these schemes. Here's why:
The problem:
- More buyers means more demand
- If no extra homes are built, prices go up
Every buyer needs savings buffers beyond what a grant gives. Research shows 65% of first home buyers in Australia experience mortgage stress, often despite having grants.
- Higher prices can cancel out the help
Studies show: In some countries, homes in scheme price ranges rose faster. This happened more than with other homes.
This does not mean schemes are bad. But know the limits.
When to Use These Schemes vs Wait
Use these schemes when:
- You have steady income
- You have saved at least 5% deposit
- You have an emergency fund
- Prices are rising faster than you can save
- Rent costs as much as a mortgage would
Use a normal loan when:
- You have saved 20% or more
- You want more lender choices
- Your property is above price caps
Keep saving when:
- You have less than 5% saved
- No emergency fund yet
- Your job is not stable
- Rent is much cheaper than owning
State by State Highlights
Tasmania - Most Generous
- $30,000 grant for new builds
- Stamp duty exemptions
- Lower property prices
NSW - Best for Existing Homes
- No stamp duty under $800,000
- Good for established homes
Queensland - Best for Regional Areas
- $30,000 for regional new builds
- Lower price caps in growth areas
ACT - Most Challenging
- No first home grant
- High prices in many suburbs
Your Action Plan
Step 1: Know Your Numbers
- How much have you saved?
- What's your emergency fund?
- What can you afford to borrow?
- How much can you save each month?
Step 2: Set a Timeline
- How long to save 10%?
- Are prices rising faster than you can save?
Step 3: Compare Options
- Guarantee program vs waiting to save 20%
- Shared equity vs full ownership later
- Grant plus this guarantee vs normal loan
Step 4: Get Personal Advice
Talk to:
- A mortgage broker
- A financial adviser
- Your state housing office
Step 5: Make a Smart Choice
Do not rush. Do not decide based on emotion.
Schemes are tools. They work well in the right case. They can cost you in the wrong one.
Run the numbers. Know what you give up. Then decide. If you're buying a flat, make sure you've finished your first apartment checklist first. A full new apartment checklist protects your buy. Once you've secured your home, plan ahead with our full moving checklist timeline. Our 8-week system helps new buyers save about $2,380 on moving costs.
First Apartment vs House: Which Programs Apply?
Different assistance programs may apply depending on whether you're buying a house or apartment.
Homebuyer Grant for Apartments
The FHOG rules for apartments vary by state. Include this in your new apartment checklist:
New apartments (off-the-plan):
- Most states include new apartments in FHOG eligibility
- Must be buying from a developer, not a previous owner
- Price caps may differ from house caps
Established apartments:
- Most states do NOT offer the homebuyer grant for established apartments
- State grants typically require new construction only
- Check your state revenue office for current rules
Home Guarantee Scheme for Apartments
The federal guarantee can apply to apartments with some restrictions:
Eligible apartments:
- Generally available for apartments in most areas
- Must meet the property type requirements
- Price caps apply based on location (use our property market analysis guide to find growth suburbs within scheme price limits)
Before buying any property, research the local market. Make sure your scheme limits match areas with good long-term value.
Potential apartment restrictions:
- Some lenders exclude high-rise buildings
- Strata-titled properties have additional checks
- Check lender criteria before relying on this guarantee
First Apartment Checklist for Government Schemes
When mixing government schemes with flat buys, your first apartment checklist should include:
- Price cap compliance - Does your target apartment fit within scheme limits? (critical apartment checklist item)
- Property type eligibility - Do schemes cover your apartment type?
- New vs established - Is your apartment eligible for the FHOG? (new apartment checklist consideration)
- Lender participation - Does your lender offer guarantee programs for apartments?
- Strata considerations - Any scheme restrictions for strata properties? (essential for any new apartment checklist)
Add these to your inspection list before applying for assistance programs. A complete property buying list helps you avoid costly mistakes when buying your first flat.
Combining Multiple Assistance Programs
In some cases, you can use multiple programs together:
Common combinations:
- FHOG + guarantee program
- FHOG + stamp duty concession
- First Home Super Saver + guarantee program
What usually CAN'T combine:
- Help to Buy Australia + guarantee (check current rules)
- Multiple guarantee programs
Always check current rules with your state and lender. Program rules change often.
The Bottom Line on Federal Assistance Programs
These programs can help you buy sooner. The FHOG gives upfront cash for new builds. The home guarantee scheme lets you buy with less deposit. Help to Buy shares ownership to cut your costs. Use these with your first apartment checklist to make sure you miss nothing. If buying a new flat, create a thorough new apartment checklist that covers both scheme requirements and property condition.
But schemes aren't magic. They have trade-offs. Know what you gain and give up before signing up. Finish your inspection list before you apply for any scheme.
For more help, see our home buying checklist and first time home buyer guide. If you want to invest while renting, try our rentvesting calculator. Use our property investment calculator to model returns.
Your First Apartment Checklist for Federal Programs
If you're buying an apartment using assistance programs, your first apartment checklist needs specific additions.
Apartment-Specific Scheme Considerations
Homebuyer grant eligibility for apartments:
- Check if your state's FHOG covers apartments
- New vs established apartment eligibility varies
- Price caps may differ for apartments vs houses
Guarantee scheme apartment restrictions:
- Some lenders exclude certain apartment types
- High-density buildings may have limitations
- Check lender criteria before assuming eligibility
New Apartment Checklist Items for Scheme Applications
When mixing federal schemes with flat buys, your list should include:
- Confirm property eligibility - Verify your apartment type qualifies for each scheme
- Check price cap compliance - Apartment prices must fall under scheme limits
- Review lender requirements - Different lenders have different apartment policies
- Factor strata into affordability - Scheme calculations should include ongoing strata costs
- Timeline considerations - Off-the-plan purchases have unique timing issues with schemes
Your property buying list should track scheme requirements alongside physical inspection items.
Schemes Apartment Checklist Summary
Before applying for assistance programs for an apartment:
- [ ] Confirmed apartment type eligible for scheme
- [ ] Verified price falls within scheme caps
- [ ] Checked lender accepts this apartment type
- [ ] Reviewed strata report for major issues
- [ ] Calculated total costs including levies
- [ ] Prepared application documentation
This first apartment checklist integration ensures you don't waste time on ineligible properties.