Buying your first home is an exciting milestone, but it can also be a daunting process. For first home buyers in Greater Geelong and the Surfcoast, the journey to homeownership doesn’t have to be as challenging as it seems, thanks to various grants and incentives available to help make the dream of owning a home more achievable.
In this article, we’ll walk you through the key grants, incentives, and strategies for first home buyers in Geelong, and how working with a mortgage broker can give you the edge you need to navigate the complexities of securing a home loan.
1. The First Home Owner Grant
One of the most well-known incentives for first home buyers is the First Home Owner Grant (FHOG). This is a one-off grant provided by the state government to help eligible first home buyers purchase a new or substantially renovated home.
In Victoria, the First Home Owner Grant offers $10,000 for those buying or building a new home valued under $750,000. If you’re purchasing a new home in Greater Geelong, this grant can be used for settlement of first draw down/progress payment depending on the lender policy. Your Mortgage Broker will help you complete the FHOG application form along with supporting documents which will be submitted to the lender along with your home loan application.
It’s important to note that the FHOG is not available for established homes—only new builds or homes that have been substantially renovated. So if you’re eyeing an older property, this grant won’t apply, but there are other incentives you might be eligible for.
2. Stamp Duty Concessions
In addition to the FHOG, the Victorian Government offers stamp duty concessions for first home buyers. Stamp duty is a tax levied by the state government when you purchase a property, and it can be a significant cost for buyers.
As a first home buyer in Victoria, you could be eligible for a stamp duty exemption or a concession when purchasing a home worth up to $600,000. For homes valued between $600,001 and $750,000, a reduced stamp duty rate applies. This can result in thousands of dollars in savings, which can be a game-changer for many first-time buyers trying to get into the market.
For example, if you buy a home for $600,000, you will pay no stamp duty—making it much easier to keep your costs down and minimise the savings required.
3. The First Home Guarantee (FHBG)
While not exclusive to Greater Geelong, the First Home Guarantee (FHBG) is a federal government initiative that can be a real game-changer for first home buyers across Australia. This scheme helps eligible buyers purchase a home with a deposit as low as 5%, without the need for expensive lenders mortgage insurance (LMI).
LMI is usually required when your deposit is less than 20%, but through the First Home Guarantee, the government essentially acts as a guarantor, removing the need for this added cost. While the FHBG is subject to availability (there are limited places each year), it can help you get into the housing market sooner without having to save for a larger deposit.
4. The Regional First Home Buyer Guarantee (RFHBG)
The Regional First Home Buyer Guarantee (RFHBG) is essentially the same as the First Home Guarantee (FHBG) supporting eligible regional home buyers to buy a home sooner, in a regional area, with a deposit as little as 5%.
To be eligible for this Guarantee First Home Buyers must have lived in the regional area or adjacent regional area they are purchasing in for the preceding 12-month period to the date they execute the home loan agreement. In the Greater Geelong area First Home buyers normally qualify for the Guarantee, however if you’re new to the Geelong region you can still apply for the First Home Guarantee (FHBG) which is not limited by where you have lived in the prior 12 months.
5. The First Home Super Saver Scheme (FHSSS)
For buyers who want to get a head start on saving for their first home, the First Home Super Saver Scheme (FHSSS) allows you to save for a deposit inside your superannuation fund. By contributing voluntary amounts to your superannuation, you can take advantage of the concessional tax treatment, which means more of your money is working for you.
Once you’ve saved enough, you can withdraw up to $15,000 per financial year and up to $50,000 across multiple years of these contributions to use towards your first home deposit. This is a great way to turbocharge your savings and reduce the time it takes to gather enough funds for your home loan deposit.
6. Lender Incentives and Initiatives
In addition to state and federal grants, some lenders may offer additional support or incentives for first home buyers. While these tend to vary from time to time, some cash back and special offers can be accessed through your Mortgage Broker.
When meeting with your Mortgage Broker ask if there are any lender incentives or initiatives that you may be eligible for to buy your home in Geelong sooner.
7. How a Mortgage Broker Can Help
Navigating the maze of grants, incentives, and financing options can be complex, especially for first home buyers who are unfamiliar with the ins and outs of the housing market. That’s where a mortgage broker can be invaluable.
Mortgage brokers are licensed professionals who work with a wide range of lenders to find you the best home loan based on your individual circumstances. They can help you assess your eligibility for various government grants and incentives, provide guidance on choosing the right loan, and ensure that you get the most competitive rates.
8. Is Now the Right Time to Buy in Greater Geelong?
The Greater Geelong area is a sought-after location, offering a mix of coastal living, easy access to Melbourne, and a variety of amenities. However, like much of Australia, the region has experienced significant price growth in recent years, which may make it more challenging for first-time buyers to enter the market.
Despite this, there are still pockets of the Geelong region where you can find affordable options, especially if you’re flexible on location or willing to consider emerging suburbs. As always, it’s important to consult a local mortgage broker who can give you insights into the current market trends and help you find a property that suits your budget and long-term plans.
Final Thoughts
While buying your first home in Greater Geelong might feel overwhelming at times, you’re not alone. With the right knowledge, guidance, and support, you can take advantage of various grants, concessions, and schemes designed to make homeownership more attainable.
If you’re unsure about where to start or how to take full advantage of the available financial support, a local mortgage broker can be a great ally. They’ll help you understand your options, ensure you’re not missing out on any grants or incentives, and find the home loan that works best for your situation.
Take the first step toward your dream home today—whether you’re looking to buy in Geelong’s bustling city centre or one of its quieter suburbs. The financial support is out there; all you need to do is reach out and make the most of it.
Happy house hunting!