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If you’re looking at government grants lately you might have noticed that, despite the government’s initial plans to bring in changes in 2024, these adjustments have yet to take place. You might also notice that there may be some interesting grant options on the horizon.
As we approach 2025, let’s check in with some of the key government grants that are already available, and take a sneak peak at what might be coming up.
What grants are out there right now?
Federal Home Guarantee Schemes
There are currently 3 federal home guarantee schemes available which are administered by Housing Australia. These grants lower the minimum deposit for a range of home buyers, with a focus on assisting family and first home buyers.
Here’s a quick snapshot:
| Current Home Guarantee Schemes | First Home Guarantee (FHBY) | Regional First Home Buyer Guarantee (RFHBG) | Family Home Guarantee (FHG) |
| Places FY2024-25 | 35,000 | 10,000 | 5,000 |
| Minimum deposit | 5% | 5% | 2% |
| Prior property ownership | First home buyers of previous homeowners who haven’t owned a property in Australia in the last 10 years | Single parent or legal guardian who does not currently own property, or intends to own a separate property when settled on the home | |
| Eligibility* | Australian citizens or permanent residents | ||
| Individual and joint applicants | Individual and joint applicants** | Single parent or legal guardian of at least one dependent | |
| Purchase location | All Australia | Regional areas only | All Australia |
*Other eligibility criteria also apply
**Must have lived in the area for 12-months prior to the loan date. Possible exemptions for work relocations.
State and Territory Home Guarantee Schemes
First Home Owner Grant (FHOG)
Arguably the most well-known initiative, the FHOG provides once-off, financial assistance for first-time homebuyers.
A national scheme, funded and administered by the states and territories, this grant applies if the property is a house and land package, newly built or substantially renovated. The eligibility criteria varies in each state and territory, so it’s essential to check the specific conditions for your area.
The FHOG can provide a significant boost to first-home buyers, helping to cover costs like deposits and stamp duties.
Assistance Schemes for First Home Buyers
At the moment there are a variety of state run schemes for first home buyers. These vary widely in purpose and across states and territories. For example, if you’re a first home buyer in NSW, you may be entitled to a concessional rate of transfer duty, or even an exemption from paying it altogether, under the First Home Buyers Assistance scheme (FHBAS). If you’ve just finished training or graduated in South Australia, then a Graduate loan might enable you to access low deposit, no LMI home loans.
For more information on the each State’s grants and schemes visit the links below:
What’s gone?
In the last few years some initiatives at the state and territory level have closed applications or ceased operating entirely. This means that, while applications may still be being processed and support finalised, places are no longer available to the current home buyer.
New Home Guarantee
The New Home Guarantee (NHG) was a previous governmental initiative. It is no longer available, although places reserved before the June 2022 closure date may still progress to settlement.
HomeBuilder Grant
Many states offered a HomeBuilder grant, providing financial support for individuals constructing new homes or undertaking substantial renovations. Although applications closed in 2021, the deadline to submit documentation for those applications had been extended to June 2025. It is no longer available to new applicants and the HomeBuilder Program “will not reopen” according to the Treasury.
Selected Shared Equity Grants
Most states and territories in Australia offer some sort of shared equity grant to support those who might not otherwise be in a position to buy a home. The amount and type of support varies considerably but the government may supply up to 40% of the purchase price for eligible properties. Currently, NT, QLD and NSW either do not have a shared equity scheme, or are closing it.
What lies ahead?
As housing is currently a significant issue in Australia, there are several proposed changes currently under consideration by parliament.
Help to Buy
The Help to Buy scheme is a proposed shared equity scheme currently under debate in the Senate. First proposed in November 2023, the scheme provides 10,000 places a year over 4 years to support home buyers that would otherwise struggle to purchase a home. It would provide up to 40% of the loan and require a minimum of 2% deposit to approved applications. Individuals must earn less than $90K and couples less than $120K. Initially proposed to start in the second half of 2024, the legislation is being held up in the Senate and is not certain to make it through parliament.
New First Home Loan Deposit Scheme
This proposed scheme aims to assist first-home buyers by allowing them to purchase a home with a deposit as low as 5%, without the need for lenders mortgage insurance. If passed, this could be a game-changer for many aspiring homeowners struggling to save a traditional 20% deposit. Again this has not passed through the senate.
Affordable Housing Grants
Another proposal seeks to increase the supply of affordable housing through grants designed to incentivise developers and investors. By providing financial incentives, the government hopes to boost the construction of homes that are within reach for lower and middle-income Australians.
Green Renovation Grants
In line with global environmental goals, the government is considering grants specifically for green renovations. These would support homeowners in making eco-friendly upgrades, such as installing energy-efficient appliances and utilising sustainable building materials.
Shifting Housing Needs?
Given the pressing need for housing, and the need to bring more cohorts into home ownership, it makes sense that there are shifts happening in the number and types of assistance schemes available. And while 2024 has not seen the sweeping changes the government initially proposed, the landscape is still evolving. Current grants continue to provide valuable support for various homeownership needs, while proposed grants offer a glimpse into the future of accessible and sustainable housing in Australia.
Navigating the world of home buyer grants and schemes can be overwhelming. Each program comes with its own set of eligibility criteria, property price caps, and income thresholds, and many have limited spots available.
On top of that, some schemes, like the First Home Guarantee, allocate a certain number of places to a limited, selected set of lenders, making it crucial to know which ones to approach.
This is where a mortgage broker can be invaluable. Brokers have access to a wide range of lenders, a deep understanding of the requirements for each grant, and up-to-date knowledge of availability.
They can match you with the right lender, ensure you meet the criteria, and guide you through the application process, saving you time, reducing stress, and increasing your chances of securing the support you need.
Whether you’re a homeowner, first-time buyer, or real estate investor, these grants offer opportunities to make smart, sustainable choices in the property market, so reach out to your local YBR mortgage broker to learn how you can leverage these grants to your advantage.
