While this is an exciting time, it can be a little daunting and at times an information overload. There’s much to consider - finances, finding the right home and taking advantage of all the government assistance that is available for you. To help you on your journey, here is all you need to know about grants and incentives, what support is available and how much you can save.

Is it First Home Owner or Buyer Grant? (FHOG)

Launched in the year 2000, the FHOG was introduced to help people and as a financial boost to encourage the building and buying of real estate.

The scheme allows buyers to get a home with a 5 per cent deposit without paying thousands of dollars in mortgage insurance. The National Housing Finance and Investment Corporation (NHFIC) guarantees the other 15 per cent of the deposit value to the lender. This is a one-time offer for first-home buyers.

For a property or house and land package priced at $750,000 or less, the value of the grant is $10,000 in Metropolitan Melbourne or $20,000 in regional areas.

The FHOG scheme does not include properties bought for investment or holiday residencies such as Airbnb. And the buyer will also need to reside at the address for a minimum of six months.

Eligibility:

• Be 18 years or older
• Be an Australian citizen or permanent resident
• Not have previously owned property in Australia, this includes your spouse or partner
• Be building or buying a new home as your principal place of residence
• The value of the home must not exceed the FHOG limit, which is currently $750,000
• You must occupy the home for at least 12 months within the 12 months of settling on the property
• It's important to note that the FHOG program and its eligibility criteria can change from time to time, so it's always a good idea to check with the relevant government agency for the most up-to-date information.

Application for FHOG:

The process for applying for the grant typically involves the following steps:

• Review the eligibility criteria to ensure you meet all of the requirements to receive the grant.
• Obtain a signed contract of sale or a builder's contract: Before you can apply for the FHOG, you will need to have a signed contract of sale for an eligible home or a builder's contract, if you are building a new home.
• Apply for the grant: Once you have a signed contract of sale or builder's contract, you can apply for the FHOG by completing the relevant application form and submitting it to the Victorian government.
• Provide supporting documentation: As part of your application, you will need to provide proof of your identity, residency and other relevant information.
• Receive your grant: Once your application has been approved, you will receive the FHOG, usually as a one-off payment.

Stamp Duty Exemption

First-home owners can ditch stamp duty fees as long as the property is valued below $600,000. That’s a saving of around $31,000, which is a great start to your buying journey. In even more good news, these savings are available whether you buy an established or newly built home.

Eligibility:

• Not have previously owned property in Australia
• Be buying a new or established home as your principal place of residence
• The value of the home must not exceed the FHOG limit, which is currently $750,000.

Pilot Shared Equity Scheme

Saving that initial deposit can be a difficult and long-winded process. Thanks to the equity scheme, first-home buyers will only need to save a 5 per cent deposit in order to buy, and the Victorian State Government takes a proportional interest of up to 25 per cent in the property.

Buyers can then take out a loan that's worth 70 per cent of the value, thanks to your initial 5 per cent deposit and the extra 25 per cent stake in the property.

Once the property is sold, only then will the buyer repay the Government’s proportional interest.

Eligibility: Singles must be earning an annual income of $75,000 or less and couples must have a combined household income of $95,000 or less.

How to apply for both exemption and scheme

To apply for the exemption, eligible first-home buyers must complete the relevant application form and submit it to the Victorian State Revenue Office along with all required supporting documentation. This typically includes proof of identity, residency and other relevant information.

This article is based on information available at the time. Please do your own investigations to determine what grants are available and what eligibility criteria apply.