First Home Buyers’ Guide to Government Incentives

For many first home buyers, saving up the ideal 20 per cent home loan deposit can be a daunting task.

Median house prices in Melbourne have risen by over 40 per cent since 2012, but fortunately, the Federal and State Governments have introduced several incentives to make it easier for eligible buyers to get a leg up on the property ladder. Better still, you can access multiple incentives at once to boost your borrowing power even more.

Keep reading for everything you need to know about the latest government schemes, discounts and grants that could help you get the keys to your dream apartment far sooner than you think. 

First Home Loan Deposit Scheme

Think you need a 20 per cent deposit to secure your very own Caydon home? Think again. Launching on January 1, 2020, the Federal Government’s First Home Loan Deposit Scheme (FHLDS) will allow eligible first home buyers to purchase a home with as little as 5 per cent deposit; the government will guarantee the remaining 15 per cent.

You’ll still need to borrow 95 per cent, but you won’t have to pay Lender’s Mortgage Insurance (LMI).

Learn more about the First Home Loan Deposit Scheme.

First Home Owner Grant

Buying a new home in Melbourne valued up to $750,000? You could be eligible for the First Home Owners Grant (FHOG), a one-off payment of $10,000 to put towards your home loan. This grant was first introduced by the Federal Government in 2000 to offset the impact of GST on buying a home.

Learn more about the First Home Owner Grant.

First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSSS) allows eligible first home buyers to make voluntary contributions to their superannuation and later withdraw these additional contributions to put towards a home deposit.

By saving money inside your superannuation fund (rather than a normal savings account), you pay less tax, meaning you’ll be able to reach your savings goal faster – and while you’re saving, your superannuation investment returns may also get a small boost.

Learn more about the First Home Super Saver Scheme.

First Home Buyer Stamp Duty Exemptions and Concessions

As a first home buyer, you may be eligible for a stamp duty exemption or concession, depending on the value of your property. Options include the First Home Buyer Duty Exemption or Concession, First Home Buyer Duty Reduction, Principle Place of Residence Duty Concession, and Off-the-Plan Concession.

Visit the SRO website for more information on eligibility and application processes.

If you’re planning to buy your first home and want to take advantage of one or more of the above government incentives, remember to speak with your lender or conveyancing team to figure out what’s right for you and which combination of incentives will work best. A slice of Caydon’s world-class apartment living could be well within your reach.