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The Ultimate Guide to First Home Owner Support in Australia

The journey to homeownership can feel overwhelming, especially when you’re trying to save your initial deposit. The current Australian government support programs are designed to help first home owners enter the property market sooner. These initiatives work at both national and state levels to reduce deposit requirements, provide tax advantages, and make homeownership more achievable for everyday Australians.

At the national level, the Australian Government offers two key programs. The First Home Owners Guarantee helps reduce the deposit requirement from 20% to as little as 5%. The First Home Super Saver Scheme provides tax advantages when saving for your deposit through superannuation. These programs often work alongside state-based First Home Owner Grants, which offer one-off payments, particularly for those building new homes.

Whether you’re just starting to save or ready to build, this comprehensive guide explains how each program works and how they can complement each other to maximise your benefits.

National Support for First Home Owners

The First Home Owners Guarantee

At its core, the First Home Owners Guarantee (formerly the First Home Loan Deposit Scheme) represents the government’s commitment to helping everyday Australians achieve homeownership sooner. It allows Australians who qualify to purchase their first home with as little as 5% saved, with the government stepping in to guarantee up to 15% of the purchase price. This will allow you to avoid costly Lenders Mortgage Insurance (LMI) while maintaining full ownership of your property.

What makes this guarantee appealing is how straightforward it is – the government backing continues until you refinance, sell, or build up to that 20% equity mark. Unlike a cash grant, the First Home Owners Guarantee is a way to provide the lender confidence to approve your loan with a smaller deposit.

The First Home Super Saver Scheme

The First Home Super Saver Scheme is a tax-effective way to build your deposit through your superannuation fund. You can make voluntary contributions to your super account specifically earmarked for the deposit for your first home. You are now allowed to access up to $50,000 of these eligible contributions.

Your voluntary contributions are taxed at 15%, rather than your normal marginal tax rate, potentially saving you thousands in tax as you build your deposit. To be eligible for the First Home Super Saver Scheme any withdrawals for your home deposit must be approved by the ATO and you’ll need to purchase your home within 12 months of accessing the funds.

First home owners scheme for new home owners

State-Based Support Programs

Beyond national initiatives, each state and territory offers additional support for first home buyers. These programs vary by location but can significantly boost your purchasing power when combined with federal schemes.

First Home Owners Guarantee

Benefits and property price caps vary across Australia. Buyers in Sydney and regional centres can purchase properties up to $800,000 – those in regional areas in NSW have a cap of $600,000. In the ACT, the property must not exceed $750,000. First time home owners in Victoria face similar geographic distinctions, with Melbourne and the states regional centres capped at $700,000 and regional Victoria at $500,000. Each state also offers some additional grants and benefits that can be used alongside the scheme, so make sure you check our state-by-state guides for specifics.

In Queensland, buyers in Brisbane and its surrounding regional centres have a $600,000 property price threshold. Western Australia, South Australia and Tasmania, each maintain their own price caps at $550,000 for their capital cities, with regional areas generally capped at $450,000. The thresholds for the First Home Owners Guarantee are regularly reviewed to ensure they reflect current market conditions.

The First Home Owners Grant

Each state and territory offers their own First Home Owner Grants and the size of the grant varies between each state and territory. For instance:

  • ACT: The First Home Owners Grant is no longer available. It has been replaced with other concessions. 
  • NSW: First home owners building a new home may receive a $10,000 grant plus stamp duty exemptions.
  • VIC: Up to $10,000 is available for homes in urban areas, while those in regional areas may be eligible to access a larger sum for the First Home Owners Grant. 
  • QLD: Currently offers a $15,000 First Home Owners Grant for new homes.
G.J. Gardner Homes builders are here for you every step of your home building journey

Building vs. Buying: Why Choose a New Home?

When utilising the First Home Owners Guarantee, building a new home with G.J. Gardner offers distinct advantages over purchasing an established property. Our home designs enable you to create a space that suits your lifestyle and preferences, from the initial layout to the final fixtures.

Modern builds incorporate the latest in energy-efficient design principles, including superior insulation standards, energy-efficient appliances, and smart home technology. These features reduce your environmental impact and can translate to significant savings on your living costs. New homes also come with comprehensive warranty protection, including structural guarantees and appliance warranties, providing peace of mind for years to come.

Beyond The Deposit: Understanding the True Costs

The First Home Owners Guarantee reduces your initial deposit requirements but it’s still essential to consider all financial aspects of homeownership. Getting familiar with calculating the cost of a home will help you avoid any unexpected surprises. When preparing your budget, remember to factor in the cost of stamp duty, government fees, legal costs, and building inspections.

Why Choose to Build?

When you partner with G.J. Gardner Homes to build your first home, you’re investing in a property that’s designed for contemporary Australian living. Our home designs can be tailored to suit your budget and lifestyle preferences.

New builds are often more cost-effective than many people realise. This is especially true when you consider the reduced maintenance and superior energy efficiency of modern homes. You’ll benefit from the latest in sustainable building practices, including improved insulation, water-efficient fixtures, and smart home technology – options that can significantly reduce your ongoing living costs.

Understanding the Building Journey

There are several key stages in the path to building your first home. The first step is selecting your ideal location and the right block of land. Once that’s secured, our designers will work with you to customise one of our home designs. This is where you’ll make important decisions about room layouts, facades, and inclusions that will shape your daily life for years to come.

G.J. Gardner Homes Designed home

Your First Home Owners Guarantee Questions Answered

Eligibility Requirements For The First Home Owners Guarantee

Before you apply, you’ll need to check if you meet the eligibility requirements. For individual applicants, the path to qualification for The First Owners Scheme requires Australian citizenship or permanent residency, and you must be at least 18 years old. Your annual income should not exceed $125,000, and you’ll need to demonstrate genuine savings of at least 5% of the property’s value. Importantly, this must be your first property purchase in Australia.

Couples applying together face slightly different criteria. Your combined annual income must stay below $200,000, both partners need to be first-time buyers and at least one partner must be an Australian citizen. The scheme requires that you intend to live in the property as your principal place of residence.

How Does The First Home Owner Grant Work?

The First Home Owners Grant is a one-off payment to help Australians purchase their first property, with each state and territory managing their own program. For new builds, The Firsts Home Owners Grant ranges from $10,000 to $15,000 in urban areas, with some regional areas offering additional incentives to encourage development outside major cities.

Receiving the grant aligns with construction milestones when building a new home. Most states release funds at the slab or base stage of construction, providing financial support at crucial building phases. When building with G.J. Gardner Homes, our construction timeline coordinates with these payment schedules.

Eligibility remains straightforward across all states and territories, applicants must be Australian citizens or permanent residents, over 18 years old, and this must be the first property they have purchased.. Most states require occupation within 12 months of completion and continuous residence for 6-12 months.

How Do I Apply For The First Home Owners Grant?

Securing your First Home Owners Grant requires careful timing and attention to detail. In most states, applications are processed through approved lending institutions i.e. major banks and credit unions. When building with G.J. Gardner Homes, we recommend applying through your construction loan provider to streamline the process and ensure documentation aligns with both loan and grant requirements.

Your application for the First Home Owners Grant needs supporting evidence: proof of identity, citizenship status, confirmation of no prior property ownership, and genuine savings history. For new builds, we provide all necessary construction documentation, including detailed contracts and timelines that meet grant authority requirements.

Can I Use The First Home Owner Scheme For Any Type of Build?

Yes, the First Home Owners Scheme can be used for various new build options, including house and land packages, custom builds on your own land or off-the-plan purchases. While there are conditions about construction completion timeframes, our experienced team works with these timeframes regularly and will create a detailed construction schedule that meets all scheme conditions while delivering your dream home.

First home owners looking at their new land

What Deposit Do I Really Need?

We typically recommend aiming for a slightly higher deposit of 5%. This will give you an additional financial buffer and may help you secure better loan terms. Your deposit must come from genuine savings accumulated over time (at least three months), rather than gifts or inheritances.

How Does The Building Timeline Affect My Guarantee?

The First Home Owners Guarantee remains valid throughout your building process provided you meet the construction time frames specified in your agreement. Our experienced team understands these timing requirements and has successfully guided thousands of first home buyers through this process, ensuring they meet all scheme obligations while creating their dream homes. Your loan will typically be released in stages as construction progresses, which can actually help with managing your finances during the build.

What If Property Prices Change During Construction?

The guarantee amount is locked in based on your contract price at the time of approval. However, variations during construction might affect your overall position. The G.J. Gardner team can explain how to manage potential changes while staying within both your budget and the scheme’s requirements. 

Can I Make Changes During Construction?

Minor variations are possible during construction, that being said, major changes can impact your guarantee and financing arrangements. We recommend finalising as many decisions as possible during the design phase. Our detailed cost of a home guide can help you make informed choices.

What Support Will I Receive Throughout The Build?

At G.J. Gardner Homes, we assign each client a dedicated building supervisor who provides regular updates throughout the process. You’ll receive progress reports, scheduled site visits, and ongoing communication about each stage of your build.

Taking Your First Steps

Beginning your homeownership journey doesn’t have to be daunting. Start by booking a consultation with a G.J. Gardner Homes expert. We will walk you through our range of designs and help you understand the building process. Remember, our team brings decades of experience in helping first-home buyers achieve their dreams. We’re here to support you through every stage of your journey, from initial planning to the moment you receive your keys. Get in touch today to discover how we can help bring your homeownership dreams to life.

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