First Home Buyers

First Home Buyer Savings Explained

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Why the time to buy is now!

First Home Buyer? We’ve never seen a better time to get into the market. Interest rates are historically low, and there has never been so much government assistance available.  In Victoria, you can get up to $35k (or $45k if you live in Geelong) or in Queensland up to $30k towards your home, when you combine the First Home Owners Grant with HomeBuilder. That’s a lot of FREE money! 

As an extra sweetener, they are also extending their First Home Loan Deposit Scheme meaning you can secure your home with a  5% deposit without paying a cent in Lenders Mortgage Insurance. That could be an extra $20k savings if you’re looking at a $550k loan.

Keep reading below to find out more about the current grants and incentives helping you into your first home. And just a note that this advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances.


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5% deposit with First Home Loan Deposit Scheme

Can’t save 20%? The First Home Loan Deposit Scheme is here to help!

As of October 4, the Government revealed they are extending their First Home Loan Deposit Scheme. It means an extra 10,000 first-home buyers will be able to purchase their new home with deposits as low as 5 per cent under an extension to the federal government’s First Home Loan Deposit Scheme. It also means you don’t have to pay pesky Lenders Mortgage Insurances which could save you $20k if you’re looking at a $550k loan.

The extension runs from October 6 to June 30, 2021, applies to newly built homes and a higher price cap of $850k in Melbourne and $650k in Queensland. 

Learn more about the First Home Loan Deposit Scheme here


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Top Tip

Eligibility requirements vary from state to state, so be sure to visit your state's office of revenue website


$10-20k First Home Owners Grant in Vic & $15k in Queensland

The First Home Owner Grant scheme (FHOG), is a government assistance program designed to help you get into the property market. Incentives for people living in Victoria include a $10,000 First Home Owner Grant (FHOG) for new homes valued up to $750,000 (or $20,000 if you’re in regional Victoria) as well as stamp duty concessions. Incentives for people living in Queensland include a $15,000 FHOG for eligible first home buyers who are buying or building a new home up to the value of $750,000 – including off-the-plan.

There are a bunch of conditions that apply that do vary from state to state. The main one includes that the eligible property must be a brand new home (purchase or construction) up to a maximum value of $750,000, you can’t have previously received the grant or owned a residential property and you will need to live in the house for a minimum of 12 continuous months (the grant isn’t available on investment properties). Read more on the FHOG here.

Keep in mind that like all government schemes, they are subject to change. So get the latest information from the State Revenue Office website relevant to your State.

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Up to 50% in Stamp duty savings

In the 2020-21 Victoria State budget, there was a host of measures intended to stimulate the housing market and building industries, including stamp duty discounts of up to 50%. What does that mean for First Home Buyers? Previously you only qualified for the full stamp duty exemption if the property was under $600,000 with a sliding concession available for homes over that and valued up to $750,000. Now, you can now combine that with the 25% or 50% stamp duty discount until June 30 2021.

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Interest rates as low as 1.89%!*

The historically low interest rates are great news for First Home Buyers.  Our finance partner MAB has rates as low as 1.89% fixed for 2 years (comparison rate 3.19%)*. Because lower interest rates means lower repayments, your borrowing capacity can be higher compared to a high interest environments. That means you could potentially be approved for a higher loan amount compared to what you would if there were higher interest rates.  While lenders will still work with a buffer just in case interest rates rise – interest rate rises aren’t likely to happen any time soon.

Learn more about our finance partner MAB, and speak to them today!

*1.89% fixed for 2 years (comparison rate 3.19%)*  is based on lowest market interest rate currently advertised and may be subject to change. This figure is a guide only and Porter Davis will not be held responsible for customer’s ability to obtain this rate. *WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Please speak to our MAB representative for details.

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Seek independent advice

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Porter Davis recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.

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