Home Owner Grants & Schemes Geelong

Over the past five years, the regional Victorian property market has seen housing values grow by 51.6%. That’s more than double Melbourne’s 20.3% growth over the same period. That’s welcome news for existing property owners, but aspiring buyers may need a little help to afford the property of their dreams. Fortunately, there are some Home Owner Grants And Schemes Geelong locals can access to help them buy or upgrade your property sooner.

What grants are available for first home buyers in Geelong, Victoria?

Grants & Schemes For Geelong Home Buyers

Types Of Government Home Owner Grants

These schemes benefit Geelong Home Buyers in several ways. Some reduce the overall deposit you required (e.g. from 20% down to 5%). Others will save you on fees like Lender’s Mortgage Insurance (LMI) and stamp duty, saving you tens of thousands of dollars. And grants like the First Home Owner Grant (FHOG) will pay you a one-off lump sum.

At $2,584, the average monthly mortgage repayment in Victoria is the country’s second highest. So these grants and incentives can give you a head start of paying off your loan sooner, saving on repayments and reducing fees.

To help you get started, here’s a rundown of the home buyer schemes available in Victoria.

First Home Owner Grant (FHOG) Victoria

The First Home Owner Grant (FHOG) grant is a one-off payment of as much as $10,000 for Victorian first home owners to buy or build a house. The purchase price or construction contract price of the house must not exceed $750,000.

The new dwelling eligible for this grant can be a single-family home, a townhouse, or an apartment. If you’re buying a finished house, instead of building a new one, it must not have been previously sold or occupied. The house must not have been previously rented either even for the short-term like an Airbnb.

The State Revenue Office of Victoria processes FHOG applications. It screens them based on these basic criteria wherein the applicants:

  • Must be an Australian citizen or permanent resident
  • Must be at least 18 years old
  • Must be an individual, not a company or trust
  • Have not yet received an FHOG in Australia and neither their spouse/partner
  • Have not owned, either jointly or separately with their spouse/partner, any residence in Australia before July 1, 2000

Those who owned or co-owned a residential property after July 1, 2000, may still be FHOG-eligible though. This is possible if they did not occupy the residence as their home.

The FHOG recipients must move into the dwelling within 12 months of the home purchase or building completion. They must live in the new home for at least 12 consecutive months, using it as their principal place of residence. The grant has to be repaid to the state in case of non-compliance with this residency requirement.

Stamp Duty Exemption

You’ll get an added perk in stamp duty exemption as a first time home buyer. This exemption applies if you buy a finished residence valued at $600,000 or less. A first home buyer who bought a house for $580,000 can save $29,870 from the stamp duty exemption.

A concession on stamp duty is possible for first home purchases valued at between $600,001 and $750,000. A $700,000 purchase of a first home buyer can have $12,357 deducted from an estimated stamp duty full rate of $37,070.

New Home Guarantee

Aspiring first home buyers have another window of opportunity in the New Home Guarantee. In 2022, the Federal Government announced an extension of this initiative to 35,000 additional first home buyers.

You might known this scheme by its old name, the First Home Loan Deposit Scheme (FHLDS).

Under this scheme, the National Housing Finance and Investment Corporation (NHFIC) guarantees part of the home loan of eligible first home buyers. With this guarantee, the buyers can purchase with as little as a 5% deposit and without paying loan mortgage insurance (LMI). This scheme applies only to its select participating lenders and with certain price caps.

Family Home Guarantee

The Family Home Guarantee is another Federal Government initiative. This initiative is designed to help single parents with dependents. The scheme enables its qualified applicants to buy an existing home or build a new one with as little as a 2% deposit and without paying LMI.

This scheme is open to Australian citizens only; permanent residents are ineligible. Applicants have to be 18 years old or over, with at least one dependent living with them. They should have an income of $125,000 in the financial year prior to their application.

Regional Home Guarantee

The Regional Home Guarantee scheme incentivise new and existing home owners to build or buy a new home in areas outside of capital cities. (Yes, Geelong meets the regional criteria!)

This scheme will be limited to 10,000 spots nationwide, so get in as soon as possible.

Like the New Home Guarantee, this scheme allows buyers to purchase with a reduced deposit – as low as 5% – and avoid the cost of Lender’s Mortgage Insurance (LMI).

First Home Super Saver Scheme

The power of savings is harnessed in the First Home Super Saver Scheme (FHSSS). The money saved under this scheme could boost the amount put towards a deposit for a home purchase by at least 30% compared with a standard savings account.

Through the FHSSS, you can deposit up to $15,000 of your salary each year. You can receive a discounted tax rate of 15%, while your funds earn a specific rate of return. When you are ready to buy your first house, you can withdraw your FHSSS money and its earnings to use for your home deposit.

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