First-Home Owner Grants & Schemes Australia 2025

Buying your first home in Australia can feel like climbing a steep mountain. Skyrocketing property prices, rising interest rates, and everyday living costs make it tough for many Australians to step onto the property ladder. But 2025 brings hope. Expanded national schemes, higher property thresholds, targeted state-level support, and architectural plans for council developed by experts are making the dream of homeownership achievable for more families than ever.

Having identified the affordability crisis, the Federal Government, Territory Governments, and State Governments all upped the aid for first-home buyers. From federal schemes like the Home Guarantee Scheme (HGS) and Help to Buy, through to attractive First Home Owner Grant in WA and other states and stamp duty concessions in each state, 2025 is shaping up to be a turning point.

Keep reading as we will share with you which programs, like the first home buyers grant in WA or Queensland, can help, how they work, and what’s new this year. Whether you are a first-time buyer, an interior designer advising clients, or a financial planner guiding families, this breakdown will help you understand the opportunities available.

Why Grants and Schemes Matter to First-Home Buyers

The biggest barrier to the majority of first-home owners is the deposit. Banks will demand 20% of the purchase price in a deposit, an access barrier that is increasingly difficult to overcome as house prices increase. On a Perth $900,000 home, that’s $180,000 before stamp duty, lawyers’ costs, moving expenses, or construction certificate even entering the equation. This is where the WA stamp duty exemption and other subsidies come in through different Grants and Schemes.

Government policy flips the maths. All first home owners, WA or anywhere in Australia, who qualify for the Home Guarantee Scheme can enter the market with just 5% or 2% for single parents, in the case of the Family Home Guarantee. This cuts the costs of entry significantly and without the necessity of pricey Lenders Mortgage Insurance (LMI), which can be tens of thousands on a loan.

These proposals are very important in 2025 as Australians are battling higher interest rates, stubborn inflation, and high rents. They allow buyers to skip decades of saving and approach a home builder to build their home faster or contact a broker to buy their dream apartment.

There are risks, certainly. Over-leverage because of low-deposit loans can expose purchasers to trouble in the case of a reduction in property values. It is often said that the first home buyers grant Western Australia or other places in Australia inflated prices by fuelling demand. Nevertheless, for buyers who plan carefully and budget wisely, these programs represent a crucial stepping stone into homeownership.

Federal/National Support Programs in 2025

Various schemes provided by the Australian federal government aim at ensuring that ownership of a first home becomes more affordable. Individual programs are designed to meet specific buyer requirements and income levels, and decrease initial expenses and LMI requirements. A breakdown of this is given below.

a) Home Guarantee Scheme (HGS)

Home Guarantee Scheme is the Federal Government’s flagship scheme, being overseen by Housing Australia. It has three streams:

• First Home Guarantee (FHG): For approved first-home buyers entering with as little as a 5% deposit.
• Regional First Home Buyer Guarantee (RFHBG): Identical to FHG but for regional Australia.
• Family Home Guarantee (FAMHG): For single parents and legally appointed guardians, entry with as little as a 2% deposit.

Eligibility involves:

• Australian residency or permanent residency.
• Minimum 2–5% deposit (scheme-based).
• Buying a property under the location-specific price cap.
• Income limits of $125,000 (singles) and $200,000 (couples).

Efficiencies:

• No LMI required.
• Faster market entry.
• Government subsidy of 15–18% of the property value.

Who it suits best:

• Single parents with limited savings.
• Couples with fixed incomes but no deposit.
• Regional buyers where property prices are lower.

Example: On a Perth $700,000 house:

Conventional loan needs $140,000 deposit + LMI.

With HGS, the borrower pays only a $35,000 (5%) deposit. LMI is avoided, saving approximately $30,000–$40,000.

b) Help to Buy (Shared Equity Scheme)

Help to Buy currently adopts a shared equity approach. The government invests up to:

• 40% of the purchase price of a brand new home, or
• 30% of the purchase price of a resale home.

This lowers the cost of the deposit and also the monthly mortgage payments.

• Target group: Lower-to-moderate-income households who might be unable to afford regular lending terms.
• Risks: The government has a stake in the house. If the house is sold or refinanced, the government gets its capital gain share. This could make subsequent decisions harder.

Example: On a $600,000 Perth house with 40% equity support:

• The government contributes $240,000.
• Homebuyers will have to borrow just $360,000.
• Deposit could be as little as $12,000 (2–5%).

This relieves pressure on borrowing and repayments to a great extent, although the shared ownership option is not suitable for all.

c) Other Federal Supports

1. First Home Super Saver Scheme (FHSSS):

Allows buyers to draw on voluntary super contributions (up to $50,000 per person) to finance deposits. This is more tax-friendly than saving in a standard account.

2. Targeted Regional Schemes:

Some pilots focus on essential workers like nurses, teachers, and police, ensuring they can live closer to work in high-demand areas.

State & Territory First-Home Grants and Concessions

All states and territories of Australia have their own First Home Owner Grants (FHOG) and concessions. Each one is significantly different. 

Queensland

• FHOG: Up to $30,000 for new builds.
• Stamp duty concessions: Significant savings for properties under certain thresholds.
• Other support: Shared equity loan pilots in regional areas.

New South Wales

• First Home Buyer Assistance Scheme: Stamp duty discounts up to $800,000.
• FHOG: $10,000 for new homes.
• Regional focus: Higher thresholds outside Sydney.

Victoria

• FHOG: $10,000 (metro) and $20,000 (regional).
• Stamp duty waivers: Properties up to $600,000 are exempt.
• Victorian Homebuyer Fund: Shared equity scheme where the state takes a proportional stake in the home.

Western Australia (Perth) 

• FHOG WA: $10,000 for new builds.
• Keystart Loans: Low-deposit loans with more flexible criteria.
• Regional concessions: Encouraging settlement outside Perth.

South Australia

• FHOG: $15,000.
• Stamp duty relief: Available for new homes under set thresholds.

Tasmania

• FHOG: A generous $30,000 for new builds.
• Regional build incentives: Particularly strong for smaller towns.

Australian Capital Territory

• No FHOG.
• Instead, stamp duty waivers support affordability for first-home buyers.

Northern Territory

• FHOG: $10,000 for new builds.
• Additional supports: Home renovation and improvement grants for specific categories.

WA FHOG Savings Analysis On A $800,000 Two-Bedroom Apartment in WA

From the above table it is clear that with FHOG first home builders can get their hands on their dream home while saving $21,584, which wouldn’t have been possible without FHOG.

Keynote:

• Queensland and Tasmania are at the forefront of providing the most generous grants.

• Victoria and WA both provide generous shared equity and loan support.

• The ACT focuses on stamp duty rather than cash grants.

• For first-home buyers, combining national schemes and state incentives can reduce entry costs by half.

How 2025 is Different from Earlier Years

The landscape for first home buyers Western Australia or other states in Australia in 2025 could not be more different from the past. The best news is that the Home Guarantee Scheme has been expanded with unlimited places and no cap on earnings from October. This eliminates the most significant barrier to the shortage that frustrated so many deserving buyers in the past.

Housing price caps have also been dropped, especially in capital cities, more in harmony with the market. In Sydney and Perth, where median prices tended to surpass previous ceilings, this makes the scheme genuinely applicable for urban buyers.

FHO Grants & Schemes Application

Application for these grants and schemes is not a single-step process. A WA FHOG application involves a lot of steps, just like the others.

Step 1: Check your First Home Owner Grant eligibility.

• Assure citizenship and residency.
• Verify whether or not your deposit and income match the requirements.
• Verify that the property type and the price are within the limit.

Step 2: Use online tools.

• The Housing Australia Eligibility Tool is a great tool to compute HGS suitability.
• The websites of state governments explain state obligations in relation to FHOG and stamp duty.

Step 3: Get documents.

• ID and citizenship evidence.
• Evidence of income: ATO Notice of Assessment.
• Savings record or superannuation contribution (FHSSS).
• Commonwealth Statutory Declaration (in HGS).

Step 4: Lodge with the correct channels.

Applications are made to lenders (banks or credit unions) taking part in HGS.

The FHOG applications are usually processed by your state offices of revenue or by your financier when your financial settlement occurs. For example, the WA FHOG application needs to be processed through WA’s Office of Revenue or your financier only.

Step 5: Timeframes.

• HGS guarantees are reserved for 14 days during the loan application.
• FHOG approval can be made simultaneously with settlement.

Tip: Demand for state grants generally outweighs availability. Apply early, pre-qualify through a lender, and use a mortgage broker to make the whole process of residential construction or the purchase of your new home simpler.

Case Studies / Examples

Case Study 1: WA Single Parent

Emma is a single parent with two children living in Perth on an annual income of $80,000. She purchases a $500,000 townhouse using the Family Home Guarantee and a 2% deposit amounting to ($10,000). She would have required $100,000 plus LMI otherwise.

Case Study 2: VIC Regional Couple

Liam and Zoe, who live in Ballarat, use the $20,000 FHOG and the First Home Guarantee. They buy a $550,000 new home with only a 5% deposit needed ($27,500). Stamp duty is saved, and they retain another $20,000.

Case Study 3: QLD First-Timer with Help to Buy

Sophie, 28, in Brisbane, buys into the market using Help to Buy. On a $600,000 house, the government puts in 40% ($240,000). Sophie has only a mortgage of $360,000, with repayments much lower than if she had taken out the whole amount.

The above scenarios illustrate how plans can be tailored to individual circumstances, single parents, rural buyers, and young professionals.

Criticisms and Risks

These schemes are lifesavers, even giving people the opportunity to buy luxury homes, but they have been contentious. Economists say that artificially inflated demand and prices through subsidies wipe out the affordability increment. Since demand is already high in the housing market, additional purchasing power will contribute to competition.

Low-equity risk is another threat. Purchasers who enter with 2–5% deposits have little cushion if house prices fall. Negative equity traps the household, restricting mobility and choice.

Shared equity schemes create another complication. Reducing up-front costs, they entangle the government in capital gains, leaving out future potential wealth for owners. There are also refinance or sale complications for some buyers who have a government affiliation.

RBA and housing lobby professionals note that while grants and guarantees assist the participants, they do not resolve the fundamental problem: the need for an added housing supply.

Advice to Australian First-Homes Buyers

• Compare all of the schemes. Don’t take the first scheme which is recommended, compare whether HGS, Help to Buy, or the first home owners grant Western Australia, or where you live, provides the most effective longer-term incentive.
• Account for surprise expenses. Solicitors’ fees, conveyancing fees, building inspections, insurance, and preliminary planning assessment will soon total $10,000–$20,000.
• Consider higher interest rates. Interest rates remain unpredictable. Ensure that you will be able to continue paying your mortgage in the event of higher payments.
• Avoid over-stretching. Just because you qualify for a higher loan doesn’t mean you should take it. Buy within budget.
• Seek professional advice. Mortgage brokers, home builders and financial planners will guide you in arranging applications, design drafting and permits, and approaching grants correctly.

FAQs

Q: How is FHOG different from HGS?

First Home Owner Grant (FHOG) is a lump sum (typically $10,000–$30,000 depending on the state) to qualified purchasers, typically for new residences both apartments and general construction. Home Guarantee Scheme (HGS) is not cash; it’s a government guarantee that allows buying with a minimal deposit and no LMI.

Q: Can I combine state grants with national schemes?

Yes. There are many buyers stacking FHOG, stamp duty savings, and the HGS for financial savings. For example, a Victorian buyer could stack FHOG + stamp duty saving + HGS on top of each other.

Q: What happens if my income rises later on after registering for Help to Buy?

Income is checked when you apply. If your income rises later, you won’t lose eligibility, but you may be encouraged to begin buying back more of the government’s share.

Q: Are grants just for new houses?

Most FHOGs, be it the First Home Buyer Grant in WA or ACT, only cover new or substantially renovated houses. But HGS and Help to Buy can go on old houses (with price caps).

Q: How do house price caps across cities vary?

Caps vary significantly. Sydney and Melbourne have the highest, while regional towns have lower limits. Always check with your participating lender or Revenue Office.

Conclusion

For Australian first-home buyers, 2025 is a benchmark year. With unlimited Home Guarantee Scheme places, higher property price caps, big first home grant WA or other states, and shared equity schemes like Help to Buy on offer, homeownership has never been better supported.

Grants and schemes are not magic bullets, though. The barrier of affordability must still be overcome, there are long-term repayments to contend with, and the complexity of part-ownership. Through sound planning, expert advice and a sense of advantage and disadvantage, such programmes can assist first home buyers WA or any other state to take that vital first step to buy their first property.

The message is simple and clear to anyone who will take the chance: research, apply early, and make an informed decision. File all your applications, be it development application or a scheme application, for a streamlined process. The opportunities lie there, but success depends on maximising them.

Disclaimer

All the figures and numbers related to costs as well as interests are calculated on the basis of data taken from Latest House & Unit Prices Across Australia: September 2025

Yourmortgage & Domain.com.au. It’s important to note that these figures are not absolute and can vary according to time, change in data, or location.