Guide to First Home Buyer Grants and Schemes in Victoria

Buying your first home represents a significant milestone in your life. For first home buyers in Ascot Vale and surrounding areas, understanding the various government grants and schemes available can make a substantial difference to your home loan application and overall first home buyer budget.

At Margin Finance, we work closely with first home buyers to help them understand their first home buyer eligibility and access the support programs designed to make homeownership more achievable. This guide outlines the key grants and schemes available to help you take that important first step onto the property ladder.

First Home Owner Grant (FHOG)

The First Home Owner Grant is one of the most well-known forms of assistance for first home buyers. In Victoria, eligible first home buyers can receive a grant of $10,000 when purchasing or building a new home. To qualify for the first home owner grants (FHOG), you must meet specific criteria:

• Be at least 18 years of age
• Be an Australian citizen or permanent resident
• Have not previously owned residential property in Australia
• Move into the property as your principal place of residence within 12 months
• Live in the property for a continuous period of at least 12 months

The property must be valued under the current threshold, and the grant applies only to new homes or substantially renovated properties.

First Home Buyer Stamp Duty Concessions

First home buyer stamp duty concessions can result in substantial savings when purchasing your property. Victorian first home buyers may be eligible for either a full exemption or concession on stamp duty, depending on the property value:

• Full exemption for properties valued up to $600,000
• Concession available for properties valued between $600,000 and $750,000

These concessions apply to both established and new properties, making them accessible to a broader range of first home buyers than the FHOG.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is a Commonwealth Government initiative that helps first home buyers enter the market with a smaller deposit. Under this scheme, eligible first home buyers can purchase a home with as little as a 5% deposit without needing to pay Lenders Mortgage Insurance (LMI).

The government guarantees up to 15% of the property value, allowing you to access home loan options that would typically require a 20% deposit. This scheme has helped thousands of Australians achieve homeownership sooner than they thought possible.

Eligibility requirements include:

• Being at least 18 years of age
• Being an Australian citizen or permanent resident
• Earning under the income cap ($125,000 for individuals or $200,000 for couples)
• Not having previously owned property in Australia
• Purchasing a property under the applicable price cap for your area

Regional First Home Buyer Guarantee

The Regional First Home Buyer Guarantee operates similarly to the First Home Loan Deposit Scheme but focuses specifically on regional areas. This scheme also allows eligible first home buyers to purchase with a 5% deposit without paying LMI.

While Ascot Vale itself doesn't fall within the regional definition, this scheme may be relevant if you're considering purchasing in regional Victoria where property prices may offer more value for your first home buyer budget.

First Home Super Saver Scheme

The First Home Super Saver Scheme allows you to save for your deposit within your superannuation fund. You can make voluntary contributions of up to $15,000 per year, with a total cap of $50,000, and later withdraw these amounts (plus associated earnings) to put towards your first home loan deposit.

This scheme offers tax advantages that can help you accumulate your deposit faster than saving in a standard savings account. The amounts you contribute are taxed at the concessional rate of 15%, rather than your marginal tax rate.

Understanding Your Home Loan Options

Once you've identified which grants and schemes apply to your situation, it's time to explore your home loan options. At Margin Finance, we can help you understand the different features available:

• Interest rate types: Choose between a fixed interest rate for certainty or a variable interest rate for flexibility. Some lenders offer interest rate discounts for first home buyers
• Offset account: Link a transaction account to your home loan to reduce interest charges
• Redraw facility: Access additional repayments you've made if needed
• Low deposit options: Including 5% deposit and 10% deposit solutions
• Gift deposit: Some lenders accept genuine savings combined with gift deposits from family members

Your First Home Buyer Checklist

To ensure a successful first home loan application, consider this first home buyer checklist:

1. Check your first home buyer eligibility for various grants and schemes
2. Review your first home buyer budget and determine what you can afford
3. Save your deposit and gather financial documentation
4. Obtain pre-approval to understand your borrowing capacity
5. Engage a mortgage broker in Ascot Vale to help identify suitable home loan options
6. Factor in Lenders Mortgage Insurance (LMI) if applicable
7. Compare different lenders and their offerings
8. Submit your first home loan application
9. Arrange building and pest inspections
10. Complete the purchase and move into your new home

Working with a Mortgage Broker

Navigating the various first home buyer grants and government schemes can feel overwhelming. A professional mortgage broker can provide valuable assistance throughout the process, from understanding your first home buyer eligibility through to submitting your home loan application.

At Margin Finance, our experienced team stays up to date with the latest government assistance programs and can help you determine which schemes you qualify for. We work with a wide panel of lenders to find home loan options that align with your circumstances and goals.

Our brokers can also help you understand the implications of different features such as offset accounts, redraw facilities, and whether a fixed interest rate or variable interest rate suits your situation. We'll explain how to apply for a home loan and guide you through obtaining pre-approval, which strengthens your position when making an offer on a property.

Additional Government Assistance

Beyond the main schemes outlined above, there are other forms of government loan programs and assistance that may be relevant to your situation. These can include shared equity schemes and other state-specific programs designed to support first home buyers.

It's worth exploring all available options to maximise the support you can access. Our team at Margin Finance keeps current with all relevant programs and can help you identify every opportunity to reduce costs and make homeownership more affordable.

Taking the Next Step

Buying your first home in Ascot Vale is an exciting journey, and understanding the grants and schemes available puts you in a stronger position to achieve your homeownership goals. From first home owner grants (FHOG) to first home buyer stamp duty concessions and the First Home Loan Deposit Scheme, these programs are designed to help you enter the property market sooner.

The key to success lies in understanding your first home buyer eligibility, carefully planning your first home buyer budget, and working with professionals who can guide you through the process. Every buyer's situation is unique, and personalised advice ensures you make informed decisions about your first home loan application.

Call one of our team or book an appointment at a time that works for you. Our mortgage brokers are here to help you understand your options, identify the grants and schemes you're eligible for, and support you through every stage of buying your first home. Contact Margin Finance today to start your journey towards homeownership.