First Home Buyer's Area
The Process Broken Down
Gather Your Team
Explore The Market
Make An Offer
Your Offer Is Accepted
Paperwork
Settle
Professionals to Engage
These are the lists of professional you should have to help you in your First Home Purchase
Mortgage Broker
A mortgage broker is someone who matches your financial needs and objectives with a lender & product available on the credit market. They assess your goals, prepare an application and submit & follow up the application until the loan application is approved. A good mortgage broker will stay with you throughout the loan term & provide guidance and support to pay off your loan faster and cost effectively. This typically includes conducting regular health checks to ensure your loan is the best on the market.
Though you can go directly to a bank, you will never find out if another bank is offering a loan product which is cheaper or better suits your needs. A mortgage broker is bound to do what is best for clients under ‘Best Interest Duty’, and will compare a panel of lenders from the over 90 credit providers in Australia, so you can rest assured that you are getting the best possible deal on the market to suit you.
Conveyancer/Solicitor
Though you can represent yourself in the transfer of property, we highly recommend avoiding this & using a conveyancer or solicitor. These are professions who specialise in the transfer to titles and funds at the time of settlement.
A conveyancer is someone who specialises in the transfer of property titles whilst a solicitor is a lawyer who also transfer titles. Typically either of these will be sufficient, however, if you are doing complex loans such as loans with guarantors, loan in trusts or SMSF (self manages super fund) loans then a solicitor may be more practical.
A conveyancer or solicitor will be able to assess your contract of sale before you sign to ensure there are no particulars you should be aware off, conduct relevant title checks and utility checks. They will be able to put in any special conditions you have agreed upon with the seller, such as cutting grass, and will be your primary point of contact going forward should you have any information to relay to the seller. Your lender or mortgage broker will work with your conveyancer/solicitor to ensure all the documentation is ready for settlement day. At settlement day, they will be the ones to transfer fund appropriately, pay your stamp duty & transfer the title into your name.
TIP: Always have a conveyancer/solicitor review your contract of sale before you sign to ensure there is nothing unusual to be aware off. You can put an offer down prior. Once your offer is accepted and you receive a contract of sale, have a conveyancer/solicitor review the contract before signing.
Building & Pest Inspector
A building & pest inspection can be done on any property – new or old; apartment, townhouse or free standing home. The purpose of a building & pest inspection is to uncover any hidden issues with the property you are looking to purchase. This will help you avoid any expensive rectification works and can be used to negotiate a new purchase price. It is best practice to engage a registered building practitioner. Findings they may uncover include termite damage, water damage, structural damage, cosmetic damage, illegal building works, issues with titles & boundaries or to name a few. They will also be able to assist with identifying any works still covered by domestic builders insurance.
TIP: Though doing a building & pest inspection is optional, we highly recommend this.
Buyers Agent
A buyers agent is a recent professional introduced into Australia in the past few years. The role of a buyers agent is to assist a home buyer to source and negotiate their home. They are licenced professionals. Buyers agents can cost between $10,000 – $15,000, However, a buyers agent skilled at negotiating or has strong connections in your desired market can pay for themselves by sourcing and negotiating on a property. Buyers agent can be used by anyone, but can be particularly helpful for those purchasing interstate, do not have the time to source & inspect properties, looking for off-market properties, as a representative at an auction or those needing assistance negotiating.
TIP: Buyers agents are not an essential professional but an option available for those looking. 2K Finance has access to free buyers agents for select First Home Buyers. Get in touch to see if you qualify.
Government Schemes Explained
There are 4 major Grants & Concessions available to support First Home Buyers get into the market.
First Home Owner Grant (FHOG)
The First Home Owner Grant (FHOG) is a state specific grant for First Home Buyers who purchase new properties or properties that have recently been built or renovated. This grant is a cash incentive to First Home Buyers and the amount ranges per state. This can be used towards the deposit of the home or to cover additional costs given you meet lender requirements.
There is no criteria on the age of the home, however, since renovated or built no-one can have lived in the property; typically ruling out older properties.
Home Guarantee Scheme (HGS)
Lenders typically like to see home owners with a 20% deposit. This gives them assurance they the would-be borrowers are capable of meeting financial commitments as well as giving the bank security in the event property prices decrease. Without a 20% deposit, lenders charge Lender Mortgage Insurance (LMI), which can cost thousands of dollars.
Housing Australia, a branch of the Australian Government, recognised that with the cost of living crisis, many young Australians were struggling to save the 20% deposit and could not afford to pay LMI without it. So the government created the Home Guarantee Scheme, in which the government would act as a guarantor to any participating mortgage contracts. This would allow first home buyers to avoid paying LMI, get market interest rates as though they were borrowing 80% of the purchase price & have a lower deposit given they meet other criteria.
There are 3 branched of the Home Guarantee Scheme which require varying deposit and have varying requirements
- First Home Guarantee Scheme: 5% deposit for all First Home Buyers
- Regional Home Guarantee Scheme: 5% deposit for First Home Buyers purchasing in regional areas
- Family Home Guarantee Scheme: 2% deposit for single applicants with dependent children
Stamp Duty Concession
Stamp Duty is a tax that state and territory governments charge for the transfer of property. The cost of stamp duty is calculated based of the purchase price, state & use of property amongst other factors. Typically, stamp duty costs are 4-6% of the purchase price of a property
Certain states and territories have introduced Stamp Duty Concessions and Exemptions to allow for no stamp duty tax payable up to a certain amount or a concession rate. It is designed to reduce the upfront costs to home ownerships for First Home Buyers meeting criteria
Lender Cash Back Offers
Certain lenders attract First Home Buyers with cash-back offers for choosing to lend with them. These are cash amounts payable shortly after you settle your loan with those lenders. These offers are not government related but are paid for by the lenders themselves as their way of helping First Home Buyers into the property market.
Typically we find the lenders that offer these cash incentives or those not part of the First Home Guarantee Scheme. Thus, they are more fitting for those with a 20% deposit who can avoid paying lenders mortgage insurance & do not require the First Home Guarantee Scheme. These offers are ever changing and may not be available at the time of your application so it is best to check with your broker regarding available lender cash back offers.
State Specific Information
Stamp Duty Concession
Concession Rates
When purchasing a Home, there $0 payable up to $700,000 and a concession rate from $700,000 – $800,000
When purchasing a Vacant Land, there no $0 payable up to $350,000 and a concession rate from $350,000 – $500,000
Eligibility Requirements
- be legally acquiring the property as an individual
- have never claimed the first home vacant land concession
- have never held an interest in another residence anywhere in Australia or overseas
- move into it with your personal belongings and live there on a daily basis within 1 year of settlement (this time cannot be extended)
- not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in
There is still the Home Duty Concession which is available to anyone purchasing a new home. It provides a reduced payable amount if the home you are purchasing will be your primary residence.
How to apply
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $30,000 Grant available to buy or build a new home up to the value of $750,000.
Eligible Transactions
- New Home
- Off-the plan Purchase
- Substantial Renovation
- Contract to Build
- Owner-Builder
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia, unless repaid
- Must not have owned property in Australia since July 2000 that you lived in or before July 2000 at all.
- To purchase an owner occupied property
- Move into the property within 1 year and live their continuously for 6 months
How to apply
Your lender will be able to apply on your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $700,000
Rest Of State: $500,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply on your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Concession Rates
When purchasing a Home, there $0 payable up to $800,000 and a concession rate from $800,000 – $1,000,000
When purchasing a Vacant Land, there $0 payable up to $350,000 and a concession rate from $350,000 – $450,000
Eligibility Requirements
- Australian citizen or permanent resident (New Zealand Citizens may be eligible if you meet criteria)
- have never held an interest in another residence anywhere in Australia or overseas
- Move into the property within 12 months & live there for 12 continuous months
- Be 18 years old
How to apply
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $10,000 Grant available to buy a new home up to the value of $600,000 or build a new home with the land and build cost up to $750,000.
Eligible Transactions
- New Home
- Off-the plan Purchase
- Substantial Renovation
- Contract to Build
- Owner-Builder
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia, unless repaid
- Must not have lived for 6 continuous months in a home you owned in Australia since July 2000
- To purchase an owner occupied property
- Move into the property within 1 year and live their continuously for 6 months
How to apply
Your lender will be able to apply on your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $900,000
Rest Of State: $750,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply on your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Concession Rates
When purchasing a property, there $0 payable up to $600,000 and a concession rate from $600,001 – $750,000. The listed values are based on the dutiable value of the property.
Eligibility requirements
- One applicant to be Australian citizen or permanent resident (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia
- Must not have owned property in Australia since July 2000 that you lived in for at least 6 continuous months or before July 2000 at all.
- To purchase an owner occupied property
- Move into the property within 1 year and live their continuously for 12 months
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $10,000 Grant available to buy or build a new home up to the value of $750,000.
Eligible Transactions
- New Home
- Off-the plan Purchase
- Substantial Renovation
- Contract to Build
- Owner-Builder
Eligibility Requirements
- One applicant to be Australian citizen or permanent resident (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia
- Must not have owned property in Australia since July 2000 that you lived in for at least 6 continuous months or before July 2000 at all.
- To purchase an owner occupied property
How To Apply
Your lender will be able to apply on your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $800,000
Rest Of State: $650,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (icluding owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply on your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Also known as the Home Buyer Concession Scheme, this scheme is available to all properties within ACT, with a maximum concession of $34,504
Eligibility Requirements
- All applicant & partners not to have owned property in the last 2 years
- Be at least 18 years old & a natural person
- Total gross income of applicants & partners to be below the relevant income threshold
- Move into the property within 12 months & live there for 12 continuous months
Income Threshold
- 0 Dependents – $170,000 Total gross income
- 1 Dependents – $173,330 Total gross income
- 2 Dependents – $176,660 Total gross income
- 3 Dependents – $179,990 Total gross income
- 4 Dependents – $183,320 Total gross income
- 5+ Dependents – $186,650 Total gross income
How to apply
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
From 1 July 2019 there is no First Home Owner Grant. This was replaced by the Home Buyer Concession Scheme (above under Stamp Duty Concession)
Home Guarantee Scheme
Property Price Caps
Throughout State: $900,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Concession Rates
50% concession discount on established home property transfers with a dutiable value less than $600,000
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Be 18 years old
- Be a natural person
- Have not previously received a First Home Owner Grant anywhere in Australia or the Duty Concession
- Must not have previously owned a home in Australia or have a partner own a home
- To purchase an owner occupied property
- Move into the property within 1 year and live their continuously for 6 months
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $30,000 Grant available to buy a new home up to the value of $600,000 or build a new home with the land and build cost up to $750,000.
Eligible Transactions
- New Home
- Moveable Home (not caravan or mobile home)
- Contract to Build
- Owner-Builder
- Kit-homes
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Be 18 years old
- Be a natural person
- Have not previously received a First Home Owner Grant anywhere is Australia
- Must not have lived for over 6 months in a home you owned in Australia since July 2000 or owned residential property in Australia before July 2000
- To purchase an owner occupied property
- Move into the property within 1 year and live their continuously for 6 months
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $600,000
Rest Of State: $450,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Concession Rates
No stamp duty payable on an eligible transaction with no price cap.
Eligible Transactions
- New Home
- Substantially renovated home
- Off-the plan apartment
- House & land package
- Vacant land to build your new home
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia, unless repaid
- Must not have lived for more than 6 months in a home you owned in Australia since July 2000
- Must not have owned residential property prior to July 2000
- To purchase an owner occupied property
- Be a natural person & over 18 years old
- Move into the property within 1 year and live their continuously for 6 months
How to apply
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $15,000 Grant available with no price cap.
Eligible Transactions
- New Home
- Substantial renovation
- Off-the plan Purchase with a build contract
- Contract to build
- Owner-Builder
Eligibility Requirements
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Have not previously received a First Home Owner Grant anywhere is Australia, unless repaid
- Must not have lived for more than 6 months in a home you owned in Australia since July 2000
- Must not have owned residential property prior to July 2000
- To purchase an owner occupied property
- Be a natural person & over 18 years old
- Move into the property within 1 year and live their continuously for 6 months
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $600,000
Rest Of State: $450,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
Concession Rates
When purchasing a home & land, there $0 payable up a dutiable value of $450,000 and a concession rate from $450,00 – $600,000.
When purchasing a vacant land, there $0 payable up a dutiable value of $300,000 and a concession rate from $300,00 – $400,000.
Eligibility Requirements
- One applicant must be an Australia citizen or permanent resident (New Zealand Citizens may be eligible if you meet criteria)
- Be 18 years of age
- Hold a relevant interest in the land
- Have not previously received a First Home Owner Grant anywhere is Australia
- Must not have owned property in Australia since July 2000 that you lived between July 2000-2004 or for at least 6 continuous months since July 2004; or before July 2000 at all.
- To purchase an owner occupied property
Your conveyancer will be able to apply on your behalf at the time you settle your property
First Home Owner Grant
A $10,000 Grant available to buy or build a new home with a home & land value up to $750,000 south of the 26th Parallel & $1,000,000 north of the 26th Parallel.
Eligible Transactions
- New Home
- Contract to Build
- Owner-Builder
Eligibility Requirements
- One applicant must be an Australia citizen or permanent resident (New Zealand Citizens may be eligible if you meet criteria)
- Be 18 years of age
- Hold a relevant interest in the land
- Have not previously received a First Home Owner Grant anywhere is Australia
- Must not have owned property in Australia since July 2000 that you lived between July 2000-2004 or for at least 6 continuous months since July 2004; or before July 2000 at all.
- To purchase an owner occupied property
How To Apply
Your lender will be able to apply in your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
Capital City & Regional Centre: $600,000
Rest Of State: $450,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (icluding owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application & reserve your spot in the scheme
Stamp Duty Concession
There are no first-home buyer stamp duty exemptions or concessions in the Northern Territory
First Home Owner Grant
A $10,000 Grant. No income or price cap.
Eligible Transactions
- New Home
- Contract to build
Eligibility Requirements
- Lodge application within 12 months of completing an eligible transaction
- Be a natural person
- Australian citizen, permanent resident or applying with someone who is (New Zealand Citizens may be eligible if you meet criteria)
- Hold an interest in the home
- Have not previously received a First Home Owner Grant anywhere is Australia, unless repaid
- Must not have held an interest in residential property in Australia before July 2000
- Must not have held an interest in residential property in Australia that they occupied since July 2000.
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application
Home Guarantee Scheme
Property Price Caps
NT Regional $600,000
Eligibility Criteria
- Apply as individual or couple
- Australian citizen or permanent resident (New Zealand citizens are currently not eligible for this scheme)
- Earn less than $125,000 as an individual or $200,000 as a couple
- Have not had an interest in real estate throughout Australia in the last 10 years (including owning land only)
- Purchasing a house to be your primary residence
Eligible Transactions
- Existing house, townhouse or apartment
- House & land package
- Land & separate contract to build
- Off-the-plan house or apartment
How to apply
Your lender will be able to apply in your behalf at the time of your mortgage application & reserve your spot in the scheme
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© 2024 2K Finance Credit Representative Number 549574 to Australian Credit Licence 377294. Eligibility Criteria and Terms & Conditions Apply. Offers are subject to change without notice. Information is general and non-specific to any individual. Always seek advice from a financial advisor.