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First-Time Homebuyer Grants, Discounts, and Incentives For 2023

For many people, the dream of becoming a homeowner is something they’ve been working towards for years. But when it comes to buying your first home in 2023, there are a lot of things to consider – budgeting, researching lenders, understanding taxes and more. Luckily, if you live in Victoria or Melbourne there are lots of incentives available to help make the process easier. In this article, we will talk about the range of available resources for Victorian First Home Buyers and how a mortgage broker Melbourne can help you.

Homebuyer Fund

If you’ve been dreaming of owning your own home, the Victorian Government’s Homebuyer Fund may give that dream a huge boost. The Fund offers qualified applicants up to 25% towards their purchase if they have a five per cent deposit. That’s like getting free money towards your new home!

What makes this even better is that you don’t have to go through the tedious process of applying yourself because we can put you in touch with lenders who participate in the scheme, making it easier and more accessible than ever before.

The First Home Owner Grant in Victoria (FHOG)

The First Home Owners Grant (FHOG) is a one-time payment designed to support first-time homebuyers in their journey. The grant provides $10,000 to anyone purchasing or building a brand-new home in Victoria and unlike stamp duty concessions, which are also available to first-home buyers buying an established property, this home loan puts money directly into your pocket!

However, keep in mind that there are eligibility criteria, including the following:

  • You must be at least 18 years of age
  • At least one applicant must be an Australian citizen or permanent resident.
  • You shouldn’t have previously gotten a grant or the first-time homebuyer rate of duty from any Australian jurisdiction.
  • You or your spouse must not have previously owned a property in Australia.
  • You must occupy the home as your principal place of residence for at least six months within 12 months of settlement or completion.
  • You must own the home in your own capacity, including a right of occupancy.

Stamp Duty Exemption or Concession

In Melbourne and Victoria, a stamp duty concession can reduce the amount of stamp duty you are required to pay on certain types of purchases. This could be applicable when buying a residential property or transferring land title. Alternatively, if you meet specific criteria as outlined by the Victorian State Revenue Office (SRO), then you may qualify for an exemption from paying stamp duty altogether.

To be eligible, buyers must meet certain criteria in relation to purchase price, location, residency requirements and other conditions. For example, you won’t have to pay any stamp duty if the value of your purchase is $600,000 or less. While if the value is over $600,000 but still under $750,000 you will still receive some discounted stamp duty on a sliding scale. However, if the property is over $750,000, you are not eligible for stamp duty concessions.

In either case, these incentives can save you money. So it is important to check with the SRO before making any purchase or transfer in order to ensure that you are eligible for the concession or exemption because this will help you make an informed decision and take advantage of all available savings opportunities.

First Home Buyers Super Saver Scheme

The First Home Super Saver Scheme (FHSSS) is a great way to save for your first home faster than you would through other superannuation means. It offers concessional tax treatment within your super fund, meaning that contributions of up to $15,000 in any one year and up to $50,000 across all years can be released under the FHSS scheme.

Furthermore, funds saved under this scheme can be released for a first home deposit once all eligibility criteria have been met. That’s why the FHSS scheme is an ideal way to set yourself up for success when it comes to saving for your future home.

We advise speaking with a trusted mortgage broker to help you get started since they can assist you in finding the answers to any questions you may have regarding eligibility requirements, contribution caps, or withdrawal amounts. They will also guide you about the rules and regulations to make sure you maximise this grant successfully.

First Home Guarantee 

First-time homebuyers now have the chance to buy their own homes without having to put aside a sizable down payment thanks to the First Home Guarantee. Through this scheme, the National Housing Finance and Investment Corporation (NHFIC) will guarantee up to 15% of your deposit which means you only need a 5% deposit for your first home.

This scheme is open to first-home buyers across Australia including in Victoria and Melbourne. To be eligible, you must fulfil certain criteria such as meeting the income requirements and not owning any other property at the time of applying. Moreover, there are limits on the property value but in good news, from 1 July 2022 – 30 June 2023, the scheme has been expanded to a further 35,000 borrowers.

The additional requirements for eligibility are as follows:

  • Homebuyers are applying as an individual or couple (married / de facto)
  • An Australian at the time they submitted their loan
  • At least 18 years of age
  • Earning up to $125,000 for single people and $200,000 for married couples, as specified on the Notice of Assessment (provided by the Australian Taxation Office) 
  • intended to occupy the bought property as a primary residence  

The Bottom Line

These grants, discounts, and incentives from the Government are creating an excellent opportunity for first-home buyers to enter the property market in Australia. With the help of these schemes, more people will be able to purchase their dream home with a smaller deposit, reduced interest rates and less financial stress. So, if you are a first-time home buyer,  get in touch with the best mortgage broker Melbourne to make sure that you get the best deal possible on your new home!