Australian First Home Buyer Guide 2024–25: Grants, Schemes, Stamp Duty and More

The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The federal government guarantees up to 15% of the property value to the participating lender, so the lender treats the loan as if it has a 20% deposit - eliminating LMI, which would otherwise cost $10,000–$30,000+ on a high-LVR loan.

Eligibility for the 2024–25 year: Australian citizen or permanent resident aged 18 or over; first home buyer (never previously owned property in Australia); income under $125,000 for singles or $200,000 for couples (assessed using prior year taxable income); purchasing a property below the relevant property price cap for your region.

Property price caps for 2024–25 vary by location: capital cities and regional centres attract higher caps (Sydney $900,000; Melbourne $800,000; Brisbane/Queensland regional centres $700,000; Adelaide $600,000; Perth $600,000; Hobart $600,000; Darwin $600,000; ACT $750,000) with lower caps for outer regional and rural areas. Check the Housing Australia website for the current cap in your specific area.

35,000 FHBG places are available per financial year. Places are allocated on a first-in basis via participating lenders - contact a participating lender early in the financial year if you are eligible, as places fill up.

The Regional First Home Buyer Guarantee provides 10,000 additional places per year for buyers purchasing in regional Australia. Eligibility mirrors the FHBG but adds a residency requirement: you must have lived in the regional area you are purchasing in for at least 12 months prior to the purchase.

The scheme operates identically to the FHBG - 5% deposit, no LMI, government guarantee of up to 15%. Regional property price caps apply (generally lower than capital city caps - check Housing Australia for current figures by region).

The First Home Super Saver scheme allows first home buyers to save for a deposit inside superannuation, where returns are taxed at a maximum of 15% (compared to your marginal rate if saving outside super). Voluntary contributions (both concessional and non-concessional) made from 1 July 2017 onwards can be withdrawn under the FHSS scheme.

The maximum amount you can request to be released under the FHSS scheme is $50,000 in total across all years ($15,000 per financial year of eligible contributions). Contributions must be voluntary - compulsory employer SG contributions are not eligible.

When you make a FHSS withdrawal request, the ATO releases the eligible contributions plus an associated earnings amount (calculated using the SIC rate, not your actual fund earnings). The released amount is included in your assessable income but taxed at your marginal rate less a 30% tax offset - effectively taxing the withdrawal at your marginal rate minus 30 percentage points. For most buyers, the net tax saving compared to saving outside super is meaningful.

You must apply for a FHSS determination from the ATO before signing a contract to purchase a property. You have 14 days after signing a contract to request the release of your FHSS funds (or 90 days in some circumstances). Do not sign a contract before obtaining your determination - you cannot use FHSS funds retrospectively.

Stamp duty (land transfer duty) is a state and territory tax payable on property purchases. Most states offer concessions or exemptions for first home buyers - but thresholds and structures differ significantly. Key concessions for 2024–25:

New South Wales: full exemption for properties up to $800,000; concession phase-out to $1,000,000. First home buyers can also opt into an annual property tax (land value tax) instead of upfront stamp duty on properties up to $1.5M.

Victoria: full exemption for properties up to $600,000; concession (50% duty reduction) for properties $600,001–$750,000. Regional Victoria first home buyers receive a 50% duty reduction for properties up to $750,000.

Queensland: full exemption for properties up to $700,000 (new homes) or $550,000 (established homes).

South Australia: no stamp duty exemption specifically for first home buyers, but a $15,000 First Home Owner Grant applies for new homes.

Western Australia: full exemption for properties up to $430,000; concessions for properties up to $530,000.

Tasmania: 50% concession on stamp duty for established homes (capped); full concession for new homes up to $750,000.

ACT: home buyer concession scheme available (income and property value thresholds apply). Check the ACT Revenue Office for current eligibility.

Northern Territory: first home owner discount of up to $18,601 on stamp duty.

LMI is insurance that protects the lender (not the borrower) if you default on your mortgage and the property sale doesn't cover the outstanding loan balance. LMI is charged when you borrow more than 80% of the property value (i.e., your deposit is less than 20%).

LMI premiums are substantial: on a $700,000 purchase with a 5% deposit ($35,000), LMI can cost $15,000–$25,000 depending on the lender and insurer. It is typically added to the loan balance and paid off over the loan term - so it also incurs interest.

How to avoid LMI without a 20% deposit: (1) Use the First Home Guarantee - the government guarantee replaces the LMI requirement. (2) Have a guarantor (a parent who allows their property to be used as additional security). (3) Use a professional package lender offering LMI waiver for certain professions (medical professionals, accountants, lawyers commonly qualify for LMI waivers at LVRs up to 90% with some lenders).

Most lenders require first home buyers to demonstrate 'genuine savings' - funds that have been accumulated in your account over at least 3 months, showing a pattern of saving rather than a lump-sum gift. Genuine savings typically need to represent at least 5% of the purchase price.

What counts as genuine savings: regular salary deposits into a savings account; term deposit balances held for 3+ months; shares or managed fund holdings for 3+ months; FHSS funds released from super.

What may not count as genuine savings without additional evidence: a cash gift from parents (some lenders accept gifts if received 3+ months before application); first home buyer grants (some lenders accept as part of deposit but not as genuine savings); inheritance.

If your deposit includes gifted funds, document the gift with a signed statutory declaration from the donor confirming the gift is non-repayable. Lenders require this to assess whether you have a genuine liability (loan) to the donor.

Roopon members access exclusive discounts on insurance, utilities, moving services, and everyday spending - all the costs that mount up when you buy and set up your first home. Paid memberships include FREE prize-draw entries per your plan and published campaign terms. Extra packages exist for specific campaigns. See /giveaways for live prizes.

Work through these steps before and during your home purchase:

• Check your eligibility for the First Home Guarantee (income under $125k single / $200k couple; property under the relevant price cap)
• If eligible for FHSS, start making voluntary contributions into super now - up to $15,000 per year counts toward your $50,000 maximum
• Request a FHSS determination from the ATO before you sign any contract - this step cannot be done retrospectively
• Research stamp duty concessions in your state - thresholds vary significantly and can save tens of thousands
• Check whether a First Home Owner Grant is available in your state for new builds
• Build 3+ months of genuine savings in a dedicated account to satisfy lender requirements
• If parents are helping with a gift, obtain a signed statutory declaration confirming the funds are a gift (not a loan)
• Pre-approval from a participating First Home Guarantee lender - apply early in the financial year as places fill up
• Budget for all upfront costs beyond the deposit: conveyancing ($1,000–$3,000), building and pest inspection ($400–$800), loan establishment fees, home and contents insurance
• Factor in mortgage buffer - stress-test your repayments at 3% above your loan rate

A mortgage broker who specialises in first home buyers can help you navigate multiple lenders and schemes - broker fees are typically paid by the lender, not by you.