First Home Buyer Grants: What You Need to Know in 2025

Buying your first home is an exciting milestone, but it can also be overwhelming, especially when it comes to navigating the financial aspects. Fortunately, the government offers several grants and incentives designed to support first home buyers and make entering the property market more achievable.

In 2025, understanding what grants are available, who qualifies and how to apply can significantly ease your journey to homeownership. This guide will walk you through the key first home buyer grants, explaining what you need to know in 2025 so you can confidently take the next step.

Understanding First Home Buyer Grants

First home buyer grants are government-backed financial incentives aimed at reducing the initial costs of purchasing or building your first home. These grants vary across states and territories, each with its own eligibility criteria and application process. The goal is to encourage homeownership by providing financial support, which often includes direct cash payments or exemptions on certain taxes like stamp duty.

While the grants offer substantial assistance, they are not a substitute for a home loan or deposit. Instead, they complement your borrowing power and help cover upfront expenses, making it easier to manage your finances during this crucial phase.

Key Grants Available in 2025

In 2025, the major grants available for first home buyers include the First Home Owner Grant (FHOG), the Home Guarantee Scheme and various state-specific incentives. These programs are regularly updated, so staying informed is essential.

First Home Owner Grant (FHOG)

The FHOG is a one-off payment available in most states and territories for eligible first home buyers who purchase or build a new home. The grant amount typically ranges from $10,000 to $20,000, but it varies depending on where you live.

For example, in Queensland, the FHOG offers $15,000 for new homes valued up to $750,000. In New South Wales, the grant is $10,000 for new homes up to $600,000. It’s important to check the latest eligibility criteria on your state revenue office website, as conditions, such as property value caps and residency requirements, can differ.

Home Guarantee Scheme

The Home Guarantee Scheme, formerly known as the First Home Loan Deposit Scheme, helps first home buyers purchase a property with a deposit as low as 5%, without the need to pay lenders mortgage insurance (LMI). The scheme guarantees a portion of your loan to the lender, reducing the risk and making it easier to get approved.

The scheme is available through participating lenders nationwide and includes specific quotas for first home buyers. This initiative can save you thousands in upfront costs, especially if you’re struggling to save a larger deposit.

State-Specific Incentives

Each state and territory offers additional incentives, including stamp duty concessions, grants for buying established homes and rebates for new builds.

For instance:

• Victoria offers stamp duty exemptions for first home buyers purchasing properties under a certain value.

• Western Australia provides a new home grant and a stamp duty concession for eligible first-time buyers.

• Tasmania has a First Home Owner Grant combined with a stamp duty concession.

These incentives are designed to complement the federal schemes, so it’s worth exploring what your local government offers.

Who Qualifies for First Home Buyer Grants?

Eligibility requirements for these grants generally include:

• Being an Australian citizen or permanent resident.

• Purchasing or building your first home (with some states allowing exemptions if you haven’t owned a property in a certain number of years).

• Meeting residency requirements, such as living in the home for a minimum period.

• Property value limits, which vary by region and grant type.

• Using the home as your principal place of residence.

It’s important to note that the grants are not available for investment properties, so if you’re buying a home to rent out, you may not qualify.

How to Apply for First Home Buyer Grants

Applying for grants usually involves:

• Submitting an application to your state revenue office or through your lender during the home loan process.

• Providing documentation such as proof of identity, contract of sale or building contract and evidence that you meet residency and usage requirements.

Working with a knowledgeable mortgage broker like Richmond Residential can simplify this process. We assist you in gathering the necessary paperwork, advise on eligibility and ensure your application is submitted correctly and on time.

How Grants Impact Your Home Loan

First home buyer grants can improve your financial position, reducing the amount you need to borrow or helping cover upfront costs like stamp duty and building deposits. However, it’s essential to understand that these grants do not directly affect your borrowing power, which is based on your income, expenses and credit history.

A grant can reduce your initial out-of-pocket expenses, giving you more flexibility to secure a loan that suits your financial situation. Richmond Residential can help you factor in these grants when assessing your borrowing capacity and finding the best loan products.

Planning Your First Home Purchase in 2025

With the right knowledge and support, securing first home buyer grants can make a significant difference in your ability to enter the property market. Here are some tips to consider:

• Start early: Research available grants and eligibility criteria well before you start house hunting or building.

• Get professional advice: Consult mortgage brokers and financial advisors to understand how grants fit into your overall finance plan.

• Be thorough with documentation: Keep records organised and submit applications promptly to avoid delays.

• Stay updated: Government policies can change, so ensure you have the latest information from official sources.

Why Choose Richmond Residential?

Navigating first home buyer grants and home loans can be complex. At Richmond Residential, we specialise in helping first-time buyers unlock the benefits available to them. Our experienced brokers provide personalised advice tailored to your situation and guide you through every step of the loan and grant application process. We work with a wide panel of lenders and stay up to date with the latest government incentives, so you can access the best financial solutions and maximise your opportunities.

Final Thoughts

First home buyer grants offer valuable financial support to help you start your homeownership journey. Being aware of the different grants available in 2025, eligibility rules and application processes will give you a strong foundation to make confident decisions.

If you’re planning to buy your first home, Richmond Residential is here to help you explore grant options and secure the right home loan. Contact us today to learn more and take the first step towards owning your dream home.