Top tips to access first home buyer grants and schemes

Understanding First Home Owner Grants (FHOG)

First home owner grants (FHOG) provide financial assistance to eligible Australians buying their first home. Each state and territory offers different grant amounts and eligibility criteria, making it essential to understand what's available in your location.

The FHOG typically ranges from $10,000 to $45,000, depending on your state and whether you're purchasing an existing home or building a new property. As a teacher, accessing these grants can significantly reduce your upfront costs when applying for a home loan.

Home Guarantee Scheme Benefits

The Home Guarantee Scheme helps first-time buyers enter the property market with smaller deposits. This government-backed program includes several components:

• First Home Guarantee allowing eligible buyers to purchase with as little as 5% deposit
• Regional First Home Buyer Guarantee for properties in regional areas
• Family Home Guarantee for single parents with dependants

These schemes help reduce or eliminate lenders mortgage insurance (LMI), which can save thousands of dollars. The benefits extend beyond just the loan amount, as participants can access Home Loan options from banks and lenders across Australia under these programs.

State-Based First Time Home Buyer Schemes

Each Australian state offers additional first time home buyer programs tailored to local property markets:

New South Wales
• First Home Buyer Assistance Scheme
• Stamp duty exemptions or reductions
• Shared equity schemes

Victoria
• First Home Owner Grant
• HomeBuilder Grant (for new constructions)
• Stamp duty concessions

Queensland
• First Home Owner Grant
• First Home Concession reducing stamp duty
• Great Start Grant for regional areas

Interest Rate Considerations

When buying your first home, understanding interest rate options is crucial for your financial situation. You'll encounter:

Variable Interest Rate Options
These rates fluctuate with market conditions and RBA decisions. Many first-time buyers choose variable rates for flexibility and potential rate decreases.

Fixed Interest Rate Options
Fixed rates provide certainty for budgeting, with rates locked for specific periods (typically 1-5 years). This stability helps teachers plan their finances more effectively.

Many lenders offer interest rate discounts for first-time buyers, and having access to banks and lenders nationwide through a mortgage broker ensures you can compare all available options.

Loan to Value Ratio and Borrowing Capacity

Your loan to value ratio (LVR) significantly impacts your home loan terms. Most traditional loans require 20% deposit to avoid LMI, but government schemes allow lower deposits.

Factors affecting your borrowing capacity include:
• Your teaching salary and employment stability
• Existing debts and expenses
• Credit history and bank statements
• The property's location and value

Teachers often have stable employment, which lenders view favourably during the application process.

Getting Pre-Approved for Your First Home Loan

Before house hunting, getting pre-approved helps you understand your budget and strengthens your position with sellers. The streamlined application process involves:

1. Gathering required documentation (payslips, bank statements, tax returns)
2. Completing the loan application
3. Lender assessment of your financial situation
4. Receiving conditional approval

Pre-approval gives you confidence when making offers and can speed up settlement once you find your ideal property.

Additional Considerations

Offset Account Benefits
Many first home loans include offset account options, allowing you to reduce interest payments by keeping savings in a linked account.

Future Investment Opportunities
Understanding investment loan options early can help you plan for your first investment property once you've established equity in your home.

Professional Guidance
Working with experienced mortgage brokers provides access to multiple lenders and can help identify the most suitable packages for your circumstances.

Buying a home represents a significant financial commitment, but government grants and schemes make homeownership more achievable for teachers across Australia. Understanding your options and working with professionals who understand the education sector can make the difference in securing your ideal property.

Call one of our team or book an appointment at a time that works for you to discuss how these grants and schemes can benefit your home buying journey.