Understanding government home buyer assistance

Match the assistance to the problem

Home buyer assistance can help with different parts of a purchase. Some measures reduce upfront tax or cash requirements; others change the financing arrangement. They do not all reduce the property's price, and being a Key Worker does not automatically qualify you for them.

EWH is a private service, separate from government programs. You may be eligible for external assistance, but its operator or participating lender must confirm whether it applies to you and the home you are considering.

Four forms of assistance

• Loan guarantee. Can support eligible low-deposit borrowing. Establish the deposit, lender, price cap and ongoing obligations.
• Grant. A payment linked to an eligible purchase or build. Establish the amount, property rules and when it is paid.
• Duty concession. Reduces eligible transfer duty. Establish the dutiable value, contract date and occupancy rules.
• Shared equity. Another party contributes and shares in property value. Establish the repayment, review and sale conditions.

The Australian Government 5 percent Deposit Scheme

The current scheme supports eligible first-home buyers with a minimum 5% deposit and eligible single parents or legal guardians with a minimum 2% deposit. It has no income cap and no limit on places. It can remove the need for LMI, but you remain responsible for the loan and purchase costs.

Location-based property caps and other eligibility requirements still apply. Applications go through participating lenders, not directly to Housing Australia. Confirm the particular home's eligibility and the amount of deposit needed with the lender. A government guarantee is not a reduction in the property's purchase price or an approval for every applicant.

Lender LMI waivers are a separate option

If you cannot use a government guarantee, ask whether a lender offers an occupation-based LMI waiver or discount. These are lender benefits, separate from government grants. Key Worker status alone is not enough: the lender may specify occupations, professional registration, income, deposit, property type and application channel.

For example, Bank First publishes an LMI waiver at up to 90% LVR for eligible education and healthcare first-home-buyer owner-occupiers who are ineligible for government schemes. Its offer excludes off-the-plan, construction and refinance loans. People First Bank also publishes a waiver at up to 90% LVR on loans up to $1.2 million for eligible registered nurses, fully qualified paramedics and sworn state or federal police officers, subject to income and lending conditions.

Major lenders and their brands also publish occupation-based waivers, and the lists are broader than healthcare. Westpac, including St.George, Bank of Melbourne and BankSA, publishes a waiver at up to 90% LVR for registered nurses, midwives and listed allied health roles earning at least $90,000 a year, and up to 95% LVR for dentists, general practitioners, hospital-employed doctors and medical specialists with no minimum income. NAB publishes waivers for AHPRA-registered medical practitioners, and for accountants, actuaries, financial analysts, barristers, solicitors and lawyers holding current membership of a listed professional body. Thresholds differ by profession and loan type.

Westpac also assesses 100% of overtime and allowances as income for eligible healthcare, emergency services and trade applicants, which can matter if your pay includes shift loadings. The profession lists, deposit rules and income tests change, so confirm the current published terms with the lender before relying on a waiver.

A waiver removes the relevant LMI premium; a discount reduces it. Neither reduces the purchase price or pays your deposit. Ask which grant or duty concession can be used with the proposed loan, and compare the loan's full cost. Building a realistic deposit and finance plan explains the finance questions and further examples.

Help to Buy is a different ownership arrangement

Help to Buy is a shared-equity scheme. It currently permits a minimum 2% deposit and a government contribution of up to 30% for existing homes or 40% for new homes. The government shares proportionally in changes in the property's value.

The current published taxable-income limits are $103,000 for individual applicants and $165,000 for joint applicants or single parents, subject to the scheme's definitions. Citizenship, property caps, occupancy and other requirements also apply. Apply through a participating lender and review the ongoing obligations.

A government shared-equity arrangement differs from buying the whole property at a discounted price through EWH. Help to Buy cannot simply be combined with another government guarantee or shared-equity scheme; ask the participating lender which combinations are permitted.

Saving through super requires planning

The First Home Super Saver scheme can allow eligible voluntary super contributions to be released towards a first home. Up to $15,000 of eligible contributions per financial year and $50,000 overall can count, subject to release and tax rules. It does not allow unrestricted withdrawal of your compulsory employer super. Check the ATO process and timing before relying on money for a purchase.

This can involve tax and superannuation decisions. Confirm suitability and timing with an appropriately qualified professional and the ATO rather than treating it as an instant deposit source.

Start with the authority for your state or territory

State rules depend on the transaction and often the contract date. The following is a starting map, not an eligibility determination or complete list. Use the linked authority to check the current conditions.

• NSW — Revenue NSW: does the purchase qualify for first-home-buyer duty relief?
• Victoria — State Revenue Office: does the new home qualify for the grant, and what duty relief applies?
• Queensland — Queensland Revenue Office: which grant and duty rules apply to my contract date?
• Western Australia — RevenueWA: are the home and transaction eligible for the grant and duty treatment?
• South Australia — RevenueSA: do I need separate applications for grant and duty relief?
• Tasmania — State Revenue Office Tasmania: which grant amount applies to my transaction commencement date?
• ACT — ACT Revenue Office: do I meet the current Home Buyer Concession Scheme conditions?
• Northern Territory — NT Government: which new-home grant and contract deadline apply?

Confirm what can be combined

Ask the lender or relevant authority to confirm each benefit separately. Record the approved amount, application deadline, payment date and ongoing obligations. Do not add every advertised grant, guarantee and developer incentive together and assume the total is available.

For a discounted property, also ask your legal representative and lender how its conditions interact with the proposed government assistance. Get those answers before you make a commitment that depends on the assistance being available.