Navigating the First Home Buyers Scheme: Eligibility, Grants, Income Limits, Buying Process, Repayments, and State Variations

Buying your first home in Australia can be thrilling and challenging, but the Australian government has introduced several initiatives to make the journey smoother, including the First Home Buyers Scheme. In this comprehensive guide, we’ll dive into crucial aspects of this scheme, focusing on eligibility criteria, grants, income limits, the buying process, repayment requirements, and variations in different Australian states.

1. Eligibility Criteria

The First Home Buyers Scheme in Australia is designed to support individuals or couples making their first leap into homeownership. To qualify for this scheme, you need to meet certain eligibility criteria:

  • First-Time Buyer: As the name suggests, you must be a first-time homebuyer. You cannot have previously owned or co-owned a residential property in Australia.
  • Residency Status: You must be an Australian citizen or permanent resident to be eligible for the scheme. Temporary visa holders are typically not eligible.
  • Property Type: The scheme usually applies to residential properties like houses, apartments, and townhouses. However, vacant land may also be eligible in some cases.
  • Occupancy Requirement: In most cases, you must move into the property as your primary residence within 12 months and live there continuously for at least six months. Renting out the property immediately may result in penalties.

2. First Home Owners Grant vs. First Home Loan Deposit Scheme

First Home Owners Grant (FHOG)

The First Home Owners Grant is a financial boost provided by various Australian states and territories. It aims to help first-time homebuyers with the initial home purchase costs. The grant amount and eligibility criteria vary from state to state, but it’s typically offered to those who plan to live in the property as their primary residence.

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme is a federal government initiative that helps eligible first-time homebuyers purchase a home with a smaller deposit. Under this scheme, you can secure a home loan with a deposit as low as 5%, avoiding the need to save up a traditional 20% deposit. Keep in mind that property price caps are depending on the location.

3. Income Limits

Income limits are crucial in determining your eligibility for the First Home Buyers Scheme and the First Home Loan Deposit Scheme. These limits are set to ensure the benefits reach those who genuinely need assistance. The income limits can vary depending on your circumstances, including whether you are buying as a single person or as part of a couple.

It’s essential to check the most current income limits for both schemes in your specific location, as these limits are subject to change and may vary by state and territory.

4. Buying Process

The process of buying your first home in Australia involves several steps. Here’s a simplified overview:

Step 1: Determine Your Budget

  • Calculate your budget, taking into account your savings, income, and any grants or subsidies you may be eligible for.

Step 2: Get Pre-Approved for a Home Loan

  • Speak to a lender or mortgage broker to get pre-approval for a home loan. This will help you know how much you can afford to spend on a property.

Step 3: House Hunting

  • Start searching for properties within your budget and in your desired location. Attend open houses and inspections to find the right home for you.

Step 4: Make an Offer

  • Once you find the perfect home, make an offer to the seller. If they accept, you’ll move on to the next steps.

Step 5: Legal and Financial Checks

  • Conduct inspections, arrange for a conveyancer or solicitor, and finalize your mortgage application.

Step 6: Settlement

  • Sign the contract, pay the deposit, and complete the settlement process, including any necessary paperwork.

Step 7: Move In

  • Once the property is officially yours, you can move in and start making it your own.

5. Repayment Requirements

Repayment requirements depend on the specific scheme you’re using to purchase your first home:

First Home Buyers Scheme Repayment Requirements

Under the First Home Buyers Scheme, no immediate or ongoing repayments are required. However, if you decide to sell the property within a certain timeframe (usually within the first few years), you may be required to repay any grants or subsidies received.

First Home Loan Deposit Scheme Repayment Requirements

If you’re utilizing the First Home Loan Deposit Scheme, you’ll need to make regular mortgage repayments to your chosen lender according to the terms of your home loan. This includes both principal and interest payments.

6. State Variations

Different Australian states and territories have their own variations of the First Home Buyers Scheme and the First Home Owners Grant. Here are a few examples of state-specific variations:

  • New South Wales (NSW): NSW offers the First Home Buyers Assistance Scheme, which includes exemptions or concessions on stamp duty for eligible first-time homebuyers.
  • Victoria (VIC): VIC provides the First Home Owner Grant (FHOG), which is a lump sum payment available to eligible first-time buyers who purchase or build a new home.
  • Queensland (QLD): QLD offers the First Home Owners’ Grant, which provides financial assistance to eligible first-time buyers who are purchasing or building a new home.
  • Western Australia (WA): WA has the First Home Owner Grant (FHOG), offering a one-time payment to eligible first-time buyers who purchase or build a new residential property.
  • South Australia (SA): SA provides the First Home Owners Grant (FHOG) for the purchase or construction of a new residential property.
  • Tasmania (TAS): TAS offers the First Home Owner Grant, which assists eligible first-time buyers in purchasing or building a new home.
  • Northern Territory (NT): NT provides the First Home Owner Grant (FHOG) for eligible first-time buyers purchasing or constructing a new home.
  • Australian Capital Territory (ACT): ACT offers the First Home Owner Grant (FHOG) and the Home Buyer Concession Scheme, which includes stamp duty concessions for eligible first-time buyers.

It’s crucial to research and understand the specific rules and benefits offered in your state or territory to make the most of these schemes.


The First Home Buyers Scheme and related initiatives in Australia are powerful tools to help you achieve your dream of homeownership. You can access valuable grants and financial assistance by meeting the eligibility criteria, understanding the income limits, and navigating the buying process. Additionally, knowing the repayment requirements and state variations will ensure that you make informed decisions throughout your journey to becoming a first-time homeowner. With these resources at your disposal, you can embark on your homeownership adventure with confidence.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Mortgage Broker in Melbourne

Christopher Berry | Owner and Director of Find A Better Rate Home Loans

Christopher Berry is the owner of Find A Better Rate Home Loans which was establish in July 2015. Christopher has been a Mortgage Broker for the past 17 years and has arranged finance for all types of applicants from first home buyers to complex company and trust lending. Christopher has customers located all over Australia and can assist with all of your finance requirements. Christopher can be contacted on 0477 212 840 or email