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General Information Only: This article contains general information only and does 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 article does not constitute such advice.
Information Currency: Laws, regulations, government schemes, grants, tax rates, and lending criteria change regularly. Information in this article may become outdated. Always verify current details through official government sources and licensed professionals before making decisions.
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Overview: First Home Owner Grant and Other Schemes
Government schemes can help you buy a home sooner. The First Home Owner Grant is one of these. But these programs change often. Always check current rules on official websites—and remember that inspecting a home carefully matters as much as the funding source. Whether you're preparing a first apartment checklist or buying a house, understanding these schemes is essential.
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 Home Buying Schemes Australia Explained Simply
These are the key government home buying schemes Australia offers, including the First Home Owner Grant and Help to Buy Australia:
1. Home Guarantee Scheme (Key Government Home Buying Schemes Australia)
What the Home Guarantee Scheme does as part of government home buying schemes Australia: Lets you buy with a small deposit. The government backs your loan through the Home Guarantee Scheme, so you skip mortgage insurance. This is one of the most popular government home buying schemes Australia.
Who can use the Home Guarantee Scheme:
- 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 about the Home Guarantee Scheme:
- 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 Help to Buy Australia does: The government pays part of your home price. You need less deposit. But they own a share of your home.
Who can use Help to Buy Australia:
- 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 government schemes.
3. First Home Owner Grant (FHOG) - Government Home Buying Schemes Australia
What the First Home Owner Grant does: The First Home Owner Grant is a one-time cash payment. Most states offer the First Home Owner Grant for new homes only. This First Home Owner Grant is part of government home buying schemes Australia.
Who can use the First Home Owner Grant:
- First home buyers eligible for First Home Owner Grant
- Rules differ by state for First Home Owner Grant
- Check your state revenue office for First Home Owner Grant details
Things to know about First Home Owner Grant:
- Most states only give First Home Owner Grant for new builds
- First Home Owner Grant amounts vary by state
- You must live in the home to get First Home Owner Grant
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: revenue.nsw.gov.au
- VIC: sro.vic.gov.au
- QLD: qld.gov.au/housing
- SA: revenuesa.sa.gov.au
- WA: wa.gov.au/finance
- TAS: sro.tas.gov.au
- NT: territorygrants.nt.gov.au
- ACT: revenue.act.gov.au
Also see: firsthome.gov.au and housingaustralia.gov.au
When Government Home Buying Schemes Australia Save You Money
Home Guarantee Scheme from Government Home Buying Schemes Australia Can Help When:
- You have a small deposit (5-10%)
- You have stable income
- You want to avoid mortgage insurance
Example using the Home Guarantee Scheme from government home buying schemes Australia: 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 Help to Buy Australia Shared Equity from Government Home Buying Schemes Australia
Help to Buy Australia shared equity through government home buying schemes Australia gives you access sooner. But you give up part of your profit with Help to Buy Australia.
Simple example of Help to Buy Australia:
- You buy a $500,000 home using Help to Buy Australia
- Government owns 30% ($150,000) through Help to Buy Australia
- Home grows to $700,000
- To buy out government from Help to Buy Australia: $210,000 (30% of new value)
The longer you wait to buy out Help to Buy Australia, 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
Remember that every home buyer needs buffers and exit options beyond what a grant provides. Follow a comprehensive home buying checklist to stay organised through the process.
- 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 scheme vs waiting to save 20%
- Shared equity vs full ownership later
- Grant plus scheme 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 situation. They can cost you in the wrong one.
Run the numbers. Know what you give up. Then decide. If you're buying an apartment, make sure you've completed your first apartment checklist before committing. A thorough new apartment checklist protects your investment. Once you've secured your property, don't forget to plan ahead with our comprehensive moving checklist timeline to ensure a smooth transition to your new home. Our 8-week system helps first-time buyers save an average of $2,380 on moving costs.
First Apartment vs House: Which Government Home Buying Schemes Australia Apply?
Different government home buying schemes Australia programs may apply depending on whether you're buying a house or apartment.
First Home Owner Grant for Apartments
The First Home Owner Grant rules for apartments vary by state:
New apartments (off-the-plan):
- Most states include new apartments in First Home Owner Grant 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 First Home Owner Grant for established apartments
- First Home Owner Grant typically requires new construction only
- Check your state revenue office for current First Home Owner Grant rules
Home Guarantee Scheme for Apartments
The Home Guarantee Scheme can apply to apartments with some restrictions:
Eligible apartments under Home Guarantee Scheme:
- 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 committing to any property purchase, conduct thorough research on the local market. Our comprehensive property market analysis guide helps you identify suburbs with strong growth potential, ensuring your government scheme eligibility aligns with areas offering the best long-term value.
Potential apartment restrictions:
- Some lenders exclude high-rise buildings
- Strata-titled properties have additional checks
- Check lender criteria before relying on the Home Guarantee Scheme
First Apartment Checklist for Government Schemes
When combining government home buying schemes Australia with apartment purchases, your first apartment checklist should include these items:
- 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 First Home Owner Grant? (new apartment checklist consideration)
- Lender participation - Does your lender offer the Home Guarantee Scheme for apartments?
- Strata considerations - Any scheme restrictions for strata properties? (essential for any apartment checklist)
Add these to your first apartment checklist before applying for government schemes.
Combining Multiple Government Home Buying Schemes Australia
In some cases, you can use multiple government home buying schemes Australia together:
Common combinations:
- First Home Owner Grant + Home Guarantee Scheme
- First Home Owner Grant + stamp duty concession
- First Home Super Saver + Home Guarantee Scheme
What usually CAN'T combine:
- Help to Buy Australia + Home Guarantee Scheme (check current rules)
- Multiple guarantee schemes
Always verify current combination rules with your state government and lender. Government home buying schemes Australia rules change regularly.
The Bottom Line on Government Home Buying Schemes Australia
Government home buying schemes Australia can help you buy sooner. The First Home Owner Grant provides upfront cash for new builds. The Home Guarantee Scheme lets you buy with less deposit. Help to Buy Australia shares ownership to reduce your costs. Use these alongside your first apartment checklist or new apartment checklist to ensure nothing is missed.
But schemes aren't magic. They have trade-offs. Understand what you gain and what you give up before committing to any government home buying schemes Australia option. Complete your apartment checklist before applying for any scheme.
For more help with your purchase, see our home buying checklist, first time home buyer guide, and first home buyer Australia guide covering mortgage stress prevention for comprehensive guidance. If you're considering investing while renting, try our rentvesting calculator to compare strategies. Use our property investment calculator to model potential returns before committing.
Your First Apartment Checklist for Government Schemes
If you're buying an apartment using government home buying schemes Australia, your first apartment checklist needs specific additions.
Apartment-Specific Scheme Considerations
First Home Owner Grant eligibility for apartments:
- Check if your state's First Home Owner Grant covers apartments
- New vs established apartment eligibility varies
- Price caps may differ for apartments vs houses
Home 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 combining government schemes with apartment purchases, your new apartment checklist 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 apartment checklist should track scheme requirements alongside physical inspection items.
Government Schemes Apartment Checklist Summary
Before applying for government home buying schemes Australia 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.