If youre buying a house in Australia for the first time you may be eligible for the First Home Owner Grant. This includes migrants with permanent residence who have already owned a house elsewhere.
You are paid the First Home Owner Grant directly if you are the house buyer. You cant claim the grant for land purchases.
In most states, there are house price caps on grants and there may be further restrictions such as the property being your primary home.
Some states offer other concessions in addition to the First Home Owner Grant. Here is a list of the concessions you could get:
New South Wales
In New South Wales, you may get a $10,000 grant through the First Home Owner Grant New Homes Scheme (FHOG New Homes), but only if you are a first time home owner who is building a home or buying a newly built home.
You can only claim the grant for new properties costing up to $600,000 or up to $750,000 for construction.
If youre a first home buyer, you are exempt from paying stamp duty on new house purchases of up to $650,000. You can also claim duty concessions for homes valued between $650,000 and $800,000.
Victoria
In Victoria, you can get a $10,000 First Home Owner Grant if the property you buy or build costs up to $750,000 and the property is a new home.
The grant increases to $20,000 for first home owners if you purchase or build a new property in regional Victoria (Mt Baw Baw, Mt Buller, Mt Hotham, Mt Stirling, Falls Creek and Lake Mountain) valued at $750,000 or less.
First home owners will also be entitled to an exemption from paying stamp duty if the purchase price of your a new or established home is less than $600,000. A duty concession is available for homes valued between $600,001 and $750,000.
Western Australia
In Western Australia, you can get the a First Home Owner Grant if you purchase or build a new property valued up to $750,000.
If you buy a home north of the 26th parallel, first home owners can get the grant if the property you buy costs up to $1 million.
First home owners pay no stamp duty on houses costing up to $430,000 for a new or established home. For properties values between $430,000 and $530,000 stamp duty is payable at a reduced rate of $19.19 per $100 or part of $100 above $430,000.
If you buy a property costing more than $530,000, stamp duty is calculated at the standard rate for first home owners.
Queensland
In Queensland, you can get a $15,000 Queensland First Home Owners Grant if the property you buy or build is a new home and is valued at no more than $750,000.
For both established or a newly built home, youll pay no stamp duty as a first home owner provided the property costs no more than $500,000.
For homes valued between $500,000 and $550,000 youll get a sliding scale concession.
South Australia
In South Australia, you can receive a $15,000 First Home Owner Grant if you buy or build a new property with a market value of $575,000 or less.
Tasmania
In Tasmania, you can get $20,000 if you purchase or build a new property, regardless of the cost your home.
From 1 July 2020 onwards the grant amount is $10,000.
Welcome as these are, these grants will not buy you a house in Australia.
Unless you have substantial savings, you will need to get a mortgage from an Australian Bank.
How Much Can You Borrow?
The amount of money you can borrow for a mortgage depends on the lender. Lenders typically use your salary to decide the maximum amount they will lend you. On average, lenders allow couples to borrow 5 times their joint pre-tax income. Some will lend more, some less. If you need a mortgage, many lenders prefer you to be settled into a job for a few months before offering you a mortgage.
Stamp Duty on the Purchase A Major Cost for Many Buyers
When you buy a house, you will have to pay tax on the purchase price. This is called Stamp Duty. First time buyers in New South Wales, Queensland and Western Australia, especially of lower priced properties, may get a discount on stamp duty.
The rate of stamp duty you pay depends on the house price. The more expensive the house, the higher the rate of tax. Each Australian state levies stamp duty at different rates.
For example, a buyer in 2018- 2019 would pay stamp duty on properties as follows:
Stamp Duty on a $900,000 House
Stamp Duty on a $700,000 House
| Location | Normal Stamp Duty | Stamp Duty Paid by First Time Buyers |
|---|---|---|
| Sydney (New South Wales) | $26,990 | $10,490 |
| Melbourne (Victoria) | $37,070 | $24,713 |
| Perth (Western Australia) | $27,265 | $27,265 |
| Brisbane (Queensland) | $17,350 | $17,350 |
| Adelaide (South Australia) | $32,330 | $32,330 |
| Hobart (Tasmania) | $26,747 | $26,747 |
Stamp Duty on a $500,000 House
| Location | Normal Stamp Duty | Stamp Duty Paid by First Time Buyers |
|---|---|---|
| Sydney (New South Wales) | $17,990 | $0 |
| Melbourne (Victoria) | $21,970 | $0 |
| Perth (Western Australia) | $17,765 | $13,433 |
| Brisbane (Queensland) | $8,750 | $0 |
| Adelaide (South Australia) | $21,330 | $21,330 |
| Hobart (Tasmania) | $18,247 | $18,247 |
Stamp Duty on a $400,000 House
| Location | Normal Stamp Duty | Stamp Duty Paid by First Time Buyers |
|---|---|---|
| Sydney (New South Wales) | $13,490 | $0 |
| Melbourne (Victoria) | $16,370 | $0 |
| Perth (Western Australia) | $13,015 | $0 |
| Brisbane (Queensland) | $5,250 | $0 |
| Adelaide (South Australia) | $16,330 | $16,330 |
| Hobart (Tasmania) | $13,997 | $13,997 |
Stamp Duty on a $250,000 House
| Location | Normal Stamp Duty | Stamp Duty Paid by First Time Buyers |
|---|---|---|
| Sydney (New South Wales) | $7,240 | $0 |
| Melbourne (Victoria) | $8.870 | $0 |
| Perth (Western Australia) | $6,935 | $0 |
| Brisbane (Queensland) | $2,500 | $0 |
| Adelaide (South Australia) | $8,955 | $8,955 |
| Hobart (Tasmania) | $7,935 | $7,935 |
Stamp Duty on your Mortgage
All Australian states have now abolished mortgage stamp duty.