First Home Buyer Guide
A complete guide for first-time buyers including grants, schemes, and tips for entering the market.
Welcome to Home Ownership
Buying your first home is one of life's biggest financial decisions. While it can feel overwhelming, understanding the process and available support can make your journey smoother. This guide covers everything from government grants to settlement day.
First Home Owner Grant (FHOG)
The First Home Owner Grant is a national scheme funded by states and territories. Grant amounts vary by state:
| State | Grant Amount | Key Conditions |
|---|---|---|
| NSW | $10,000 | New homes up to $600,000 |
| VIC | $10,000 | New homes up to $750,000 |
| QLD | $30,000 | New homes up to $750,000 |
| WA | $10,000 | New homes up to $750,000 |
| SA | $15,000 | New homes up to $650,000 |
| TAS | $30,000 | New homes up to $600,000 |
| ACT | Varies | Check current eligibility |
| NT | $10,000 | New homes, various thresholds |
Stamp Duty Concessions
Most states offer stamp duty exemptions or concessions for first home buyers:
- NSW: Exempt up to $800,000, reduced up to $1M (from 1 July 2024: choice of stamp duty or annual property tax)
- VIC: Exempt up to $600,000, reduced up to $750,000
- QLD: Exempt up to $500,000, reduced up to $550,000 for vacant land
- WA: Exempt up to $430,000, reduced up to $530,000
- SA: Reduced on homes up to $650,000
- TAS: 50% discount on properties up to $600,000
Federal Government Schemes
Key federal programs to help first home buyers:
- First Home Guarantee (FHBG): Buy with 5% deposit, no LMI, for homes up to $900,000 in Sydney
- Regional First Home Buyer Guarantee: 5% deposit for regional purchases
- Family Home Guarantee: Single parents can buy with 2% deposit
- First Home Super Saver Scheme: Use super contributions for deposit (up to $50,000)
- Help to Buy (from 2024): Government co-owns up to 40% of new homes, 30% existing
How Much Can You Borrow?
Lenders assess your borrowing capacity based on:
- Your income (base salary, regular overtime, bonuses, rental income)
- Your expenses (living costs, existing debts, credit card limits)
- Your deposit amount and savings history
- Your credit score and history
- The type of property and its location
- Current interest rates and buffer rates
Costs Beyond the Purchase Price
Budget for these additional costs:
| Cost | Typical Amount | Notes |
|---|---|---|
| Stamp Duty | 1-6% of price | Varies by state, concessions may apply |
| Legal/Conveyancing | $1,500-$3,000 | Contract review and settlement |
| Building Inspection | $400-$700 | Essential for houses |
| Pest Inspection | $250-$400 | Often combined with building |
| Strata Report | $200-$400 | For apartments and townhouses |
| Loan Application | $0-$600 | Some lenders waive this |
| Lenders Mortgage Insurance | 1-4% of loan | If deposit < 20% |
| Moving Costs | $500-$2,000 | Depends on distance and items |
First Home Buyer Checklist
Steps to buying your first home:
- Check eligibility for grants and concessions in your state
- Determine your budget and get pre-approved for finance
- Choose locations that suit your lifestyle and budget
- Start inspecting properties to understand the market
- Engage a solicitor or conveyancer
- When you find a property, conduct thorough due diligence
- Make an offer or bid at auction
- Exchange contracts and pay deposit
- Arrange final finance approval and building insurance
- Settle and collect your keys!
Common First Home Buyer Mistakes
Avoid these pitfalls:
What to Avoid
Learn from others' mistakes:
- Not getting pre-approved before property hunting
- Underestimating total purchase costs
- Buying at the top of your budget with no safety buffer
- Skipping building and pest inspections to save money
- Letting emotions drive bidding at auction
- Not reading the contract of sale thoroughly
- Choosing a home loan based only on interest rate
Related Guides
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