Explore our low rates and flexible home loan options. Buying your first home is a big deal. As well as the excitement, there’s a lot to research, and plenty of jargon to untangle before you can feel ready to make a move. We’re here to help guide you step-by-step through the process
Explore our low rates and flexible home loan options.
Buying your first home is a big deal. As well as the excitement, there’s a lot to research, and plenty of jargon to untangle before you can feel ready to make a move. We’re here to help guide you step-by-step through the process
As a first home buyer, preparing to purchase your first home can become a perplexing (and quite frankly, daunting) task if you don’t know where to begin.
Fortunately, Australians are afforded many opportunities to reduce costs and speed up the home buying process through various government incentives and grants.
Understanding these grants and knowing whether you can qualify for them can potentially save you days of work and thousands of dollars on your mortgage. However, the frequent updates and amendments to these incentives can often leave first home buyers scratching their heads over what they can and can’t leverage.
That’s why over at Homestar Finance, we’ve put together a detailed breakdown of every single incentive available to first home buyers, to help you navigate through the noise and get familiar with all of the cost saving opportunities available at your fingertips.
Explore our market-leading range of mortgage options, rates and features:
Star Choice
Variable principal & interest
6.75%
Interest rate p.a.1a
6.42%
Comparison rate p.a.1a,2
Star Classic
Variable principal & interest
6.35%
Interest rate p.a.1a
6.38%
Comparison rate p.a.1a,2
Star Classic Fixed
Fixed principal & interest
6.95%
Interest rate p.a.1a
6.79%
Comparison rate p.a.1a,2
Star Essentials
Variable principal & interest
6.25%
Interest rate p.a.1a
6.28%
Comparison rate p.a.1a,2
Star Classic
Variable principle and interest
6.55%
Interest rate p.a.1b
6.58%
Comparison rate p.a.1b,2
Star Classic
Variable interest only
6.95%
Interest rate p.a.1b
7.03%
Comparison rate p.a.1b,2
Star Classic Fixed
Fixed principal & interest from
7.35%
Interest rate p.a.1b
7.01%
Comparison rate p.a.1b,2
Homestar Finance has been providing Australians with competitive and customer-focused home loan solutions since 2004.
Our dedicated team of loan specialists are there to support you through your home loan journey, and take the time to get to know you so we can offer our customers a personalised service – making it easy to find a home loan solution that suits you.
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Investment Variable Home Lender
Investment Variable Home Lender
There are a myriad of grants, incentives and exemptions available to first home owners in Australia. The main 4 categories that these financial aid incentives fall under are as follows:
Some of these, such as the first home owners grant and stamp duty exemptions are controlled and regulated by individual states and territories. On the other hand, schemes made available as part of the wider Home Guarantee Scheme operate on a federal level and are managed by third party government agencies like the National Housing Finance and Investment Corporation (NHFIC).
Most state level grants and exemptions are handed out based solely on eligibility criteria and are available to anybody who meets the relevant criteria. Whereas, federal schemes usually have a limit on the number of applicants accepted and qualifying requirements tend to be more situation-specific.
Rest assured, however, that almost all first home buyers in Australia are usually eligible for some sort of financial assistance and even if you do not qualify for one of these grants, it doesn’t necessarily mean that you will be ineligible for all of them.
In fact, some first home buyers may be eligible to benefit from multiple grants as long as they meet the appropriate requirements. Moreover, there are some grants or incentives in this article that are also available to non-first home buyers as well.
Continue reading to find out more about each specific grant and how they can help you as a prospective property owner.
The First Home Owners Grant is a state-specific, one-off payment designed to provide home buyers with a much needed financial boost when purchasing their first property. Although the grant itself is standardised across the country, the amount provided by the FHOG and the qualifying conditions do vary across states and territories.
At the fundamental level, the FHOG’s basic qualifying criteria remains the same for all Australians:
However, each state has different qualification criteria when it comes to the property itself. For instance, some states only provide the FHOG to homebuyers purchasing or constructing a new home (no previous occupier). Whereas, other states may approve the grant for “substantially renovated homes”.
Available only to those buying or constructing a new home (no previous occupier) or in certain states) “substantially renovated homes”. Furthermore, most densely populated states also have a property value limit for FHOG qualification.
For each state and territory, click on the
Learn more about the First Home Owner Grant here.
In the context of the First Home Owners Grant, a qualifying “home” can include:
Generally speaking, as long as you are purchasing a home for the first time and you intend to occupy the home as a primary place of residence, your property should be eligible for the FHOG.
Do keep in mind that if the property exceeds the state-specific property price threshold, there is no way to qualify for the First Home Owners Grant, although you may still be eligible for other schemes and stamp duty concessions.
You may be able to apply for multiple grants or be exempt by receiving specific grants. Check the eligibility criteria.
Stamp duty is a one-time dutiable tax that applies when you purchase a high-value asset, i.e. a property (or transfer a property title into your name).
Also referred to as transfer duty or land transfer duty, the total amount is usually payable after settlement and the amount payable will vary depending on your location and circumstances.
Typically, the stamp duty payable depends on the property value. Stamp duty exemptions are usually available to first home buyers who are purchasing a property under the relevant property price cap. However, you may still be eligible for stamp duty concessions even if you are not a first-time buyer or purchasing a high-value property.
Each state and territory has its own stamp duty concessions and eligibility requirements. Most states follow these general guidelines when it comes to stamp duty exemptions.
The following is a list of stamp duty exemptions and concessions specific to each state:
In lieu of the abolished FHOG, the Home Buyer Concession Scheme offers ACT home buyers a stamp duty concession of $34,790 for all home and land properties. Total household income thresholds are based on the number of dependent children and $186,650 is the maximum.
Under the First Home Buyers Assistance Scheme, eligible NSW buyers may be exempt from all or part of the transfer duty tax when purchasing any property (new, existing, or vacant land) valued up to $1 million. Additionally, NSW first home buyers have the option with the First Home Buyer Choice, NSW first home buyers have the option of yearly property taxes instead of lump sum stamp duty on properties up to $1.5 million.
A stamp duty exemption is available for all house and land packages of any value under the House and Land Package Exemption (HLPE). (Amount of exemption? $)
There are 3 options for stamp duty concessions in QLD. First home owners can save up to $15,925 on stamp duty for homes valued $550,000 and under. If the home is over $550,000, then buyers can apply alongside all other homeowners for a concession, saving up to $7,175 in total duty fees, regardless of property value. The concession for buying vacant land valued under $400,000 to build your first home can bring you savings of $7,175.
There are no stamp duty concessions or exemptions in SA for all types of property buyers.
50% tax duty concession for first home buyers of established homes with a property value of $600,000 or less.
First home buyers of new or existing homes are eligible for full stamp duty exemption on properties valued at up to $600,000. With a 50% stamp duty concession for properties valued between $600,000 and $750,000. First home buyers of property valued no more than $200,000 can also apply for a family exemption or concession of stamp duty. All buyers are eligible for stamp duty concession for properties valued up to $550,000 that will be a principal place of residence for at least 12 months.
Most states also have additional tax concessions available, such as the off-the-plan concession available in Victoria. Be sure to familiarise yourself with the concessions and exemptions available in your specific state, as you may be able to shave thousands of dollars off out-of-pocket costs.
The Home Guarantee Scheme is the overarching term for a series of federal-level grants that have been introduced to try and provide financial assistance to Australians in need.
These schemes generally look to guarantee a portion of the property value, so that Australians can get their foot in the door sooner and with fewer upfront costs.
The wider Home Guarantee Scheme has been subject to multiple changes after the results of the 2022 Australian Federal Election, so it can be a bit tricky to keep up with the changes.
As of now, however, these are the schemes that are available to Australians under the Home Guarantee Scheme:
We’re here to break down these nationwide schemes both new and old, as well as any updated or removed schemes so that you can get a clear picture of exactly what type of financial assistance is available to you.
The First Home Guarantee has recently been implemented by the Australian Government to replace and combine two previous schemes: the First Home Loan Deposit Scheme (FHLDS) and the New Home Guarantee (NHG). It combines the benefits of both to create an overarching scheme that’s more accessible and available to homebuyers.
The purpose of the FHBG is to eliminate the need for a substantial deposit and assist home buyers by speeding up the process of purchasing their first home.
Under the First Home Guarantee, the government guarantees a portion of your home loan (up to 15%), meaning that you could purchase a home with only a 5% deposit while also avoiding costly lenders mortgage insurance (LMI) premiums.
The FHBG has been made available to 35,000 individuals over the next financial year (1 July 2022 – 30 June 2023) and is managed by the National Housing Finance and Investment Corporation (NHFIC).
If you’re curious about eligibility criteria or further information regarding the First Home Guarantee, make sure to visit Homestar Finance’s comprehensive breakdown of the FHBG.
As mentioned above, the First Home Guarantee is intended to replace two previously existing schemes. Of these, the First Home Loan Deposit Scheme was specifically designed to assist with the purchase of a new or existing residential property.
Eligible property included:
The terms of the FLHDS were almost identical to the First Home Guarantee but it had been limited to only 10,000 applicants.
Like the FHLDS, the New Home Guarantee followed the exact same grant conditions as the First Home Guarantee, i.e. the government would insure up to 15% of the home loan, reducing the amount of deposit required for first home buyers.
However, the New Home Guarantee was specifically designed to help first home buyers in purchasing or constructing a new home, rather than an established or existing home.
The NHG was also restricted to 10,000 applicants, meaning that the First Home Guarantee provides financial assistance to more Australians than both of the previous schemes combined.
The Family Home Guarantee is a federal-level scheme that looks to alleviate the burden of purchasing a residential home for single parents. Any single parents with dependents, looking to purchase their first home are eligible for the FHG.
Much like the FHBG, under the Family Home Guarantee, the NHFIC will guarantee a portion of your home loan so that you are able to purchase the home quicker and with less deposit. The FHG can insure up to 18% of the mortgage, meaning that if eligible, single parents can purchase a home using as little as a 2% deposit without incurring LMI.
Unlike other schemes on this list, however, the FHG is not only limited to first home buyers. Family Home Guarantee applicants can be either first home buyers or previous owners who do not currently own a home. This includes:
Other relevant qualifying conditions for the Family Home Guarantee include property price caps and income restrictions.
If you believe you may qualify for the FHG, be sure to check relevant information provided by the NHFIC and check with your lender to see if you are eligible to apply.
Along with updates to the Home Guarantee Scheme, the 2022 Election has also brought about some much-needed additions that are sure to make things easier for many first home buyers around Australia.
The Regional Home Guarantee was announced as part of the 2022-23 Federal Budget to try and provide more support for prospective homeowners looking to purchase outside of the densely populated major cities.
Starting October 2022, under the RHG, 10,000 eligible applicants will be guaranteed up to 15% of their home loan. Meaning, anyone purchasing a home within eligible rural areas will be able to leverage the RHG to purchase a home with just a 5% minimum deposit.
Similar to the Family Home Guarantee, the Regional Home Guarantee will be made available to non-first home buyers as well, so long as they meet the other relevant requirements.
The soon to be introduced Help to Buy Scheme looks to cut the initial cost of buying a home by up to 40%. Introduced by the Labor Government as part of their 2022 Election campaign, the scheme will open to 10,000 Australians by the end of the year.
Under the Help to Buy Scheme, the government will contribute a maximum of:
and applicants will only be required to have a minimum of 2% deposit at the ready.
Although this means that the government will own equity in your home, you will be able to purchase the equity back when you are in a financially stable situation (at a minimum of 5% at a time).
Though the finer details are yet to be finalised, like other schemes, there will be limits imposed on property value and personal eligibility criteria. You can check some of these preliminary qualifying conditions on the Australian Labor Party (ALP) Website.
Outside of the Home Guarantee Scheme and state-specific FHOGs, there are also other incentives that are available to help first home buyers.
HomeBuilder was a previously state-specific grant that provided eligible owner-occupiers with a one-off lump sum payment to assist in building a new home, substantially renovating an existing home, or buying a home off the plan.
HomeBuilder looked to provide a $15,000 grant for contracts entered between 1 January 2021 – 31 March 2021 and a $25,000 grant for contracts entered between 4 June 2020 – 31 December 2020. Applications have since closed on the 14 April 2021 and are no longer available.
As a first home buyer residing in Australia, there are many opportunities for financial assistance. Depending on your individual circumstances and eligibility, you may even be able to leverage multiple grants and incentives for the same property. If you are unsure where to begin your search, be sure to check out some of the most competitive loans on the market.
No matter how much you love a property, you need to base your decision on more than gut feel.
See if you can get hold of a suburb profile, which can help you get a clearer picture of the neighbourhood and estimated sale/rental prices.
You should also check out the lifestyle factors you need today, like public transport and local facilities, or maybe tomorrow, like access to schools and hospitals. You should also try and find out if there are any development applications nearby that could impact the property in the future.
Make sure you’ve seen enough potential properties to know what works for you, and what doesn’t. Check out how much similar properties in the area sell for – in good times and bad.
If you’re buying an apartment, be sure to get hold of the strata report- in advance to discover any upcoming maintenance projects that could affect your strata costs. If you’re buying a house, an up–to–date building condition and pest inspection report is essential.
Your home loan pre-approval application can be done completely online via our form with no paperwork involved! The form takes only 5 minutes to complete, and you can save your progress and finish at any time.
Discover the possibilities with our mortgage calculator. Get an estimate of how much you could afford to borrow based on your lifestyle.
Calculate your borrowing power at an early stage to help narrow down your property search to things you can afford. Our Borrowing Power calculator can help you see the maximum amount you’re eligible to borrow.
A good place to start is to get an idea of how much you might be able to borrow. Then you’ll not only be able to take a look at what’s on the market in your price range, you’ll also have some indication of what size deposit you’ll need. Generally, most lenders like a 20% deposit of the purchase price of the property. If you have less than 20% deposit but you’re still keen to purchase, there are options available that could help you buy a property sooner.
1 Rates shown apply to new eligible Owner Occupieda or Investment loansb only, loan limits may apply depending on your product (refer to the product page) and at least one applicant is on PAYG employment. After a fixed rate term, a variable rate will apply. Rates are subject to change without notice. Existing borrowers may have different interest rates which are dependent on the rate offered to the borrower at the date when a home loan settled and any reductions or increases the lender decided to make on the existing loan over time. Accordingly, there is not one standard variable rate that applies to all Homestar home loans and existing customers can confirm their current rate(s) by logging in to internet banking or by contacting customer service. Terms, conditions, and eligibility criteria apply.
2 Comparison rates are based on a basic Homestar loan, on a $150,000 loan amount over 25 years. 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.
Other fees and charges may apply.
DISCLAIMER: Terms, conditions and eligibility criteria apply to all our loan products and features. Fees, charges and disbursements are payable. Final approval is subject to credit assessment. Information valid as at 15th November 2023 which is subject to change without notice. Please consider if the product is appropriate for your individual circumstances. If you need assistance or have any questions about a product or feature and its suitability, please contact our Loan Specialists.
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