Government Schemes for Home Buyers

Governments around the world — at national, state, and local levels — offer a range of schemes, grants, and concessions designed to help people buy their first home or enter the property market. These programs recognise that homeownership is increasingly difficult for many buyers, particularly younger ones, and they aim to reduce some of the financial barriers. Understanding what is available to you in your country can save thousands or even tens of thousands of dollars.

Government support for home buyers broadly falls into three categories: direct grants (cash payments to help with the purchase), guarantee schemes (where the government guarantees part of your loan so you can buy with a smaller deposit without paying Lenders Mortgage Insurance), and stamp duty concessions or exemptions (reductions in the state tax charged on property purchases).

The availability and details of these schemes vary significantly depending on your region or country, the value of the property you are buying, whether you are buying an existing home or building new, and your personal circumstances (income, age, whether you are a first-time buyer). Some schemes are federal and apply nationwide, while others are administered at the state level with different rules in each jurisdiction.

In the sections below, we cover the major schemes currently available to home buyers worldwide. For a broader overview of the home-buying process, see our first home buyer guide. To understand how much you need to save before these schemes come into play, check out our deposit guide.

Many countries offer direct grants or tax credits to first home buyers. In the USA, programs like the FHA down payment assistance and state-level housing finance agency grants serve a similar purpose. In Canada, the First-Time Home Buyer Incentive and the Home Buyers' Plan allow buyers to access support. In the UK, first-time buyers benefit from schemes like the Lifetime ISA bonus and stamp duty relief. In New Zealand, the First Home Grant provides cash assistance. Below, we cover Australia's well-established First Home Owner Grant as a detailed example of how these programs work.

In Australia, the First Home Owner Grant (FHOG) is a one-off payment to eligible first home buyers. It was originally introduced as a national scheme in 2000 to offset the impact of the GST on home purchases, but it is now administered independently by each state and territory, with different grant amounts and eligibility criteria in each jurisdiction.

In most states and territories, the FHOG is now only available for new homes — either newly built properties, off-the-plan purchases, or owner-builder constructions. Established (existing) homes are generally no longer eligible for the FHOG, although some states have reinstated grants for established homes during specific periods. The grant amount varies by state, typically ranging from $10,000 to $30,000.

To be eligible for the FHOG, you generally must be an Australian citizen or permanent resident (for the Australian FHOG), aged 18 or over, and must not have previously owned residential property in Australia. The property must be your principal place of residence — you cannot use the FHOG to buy an investment property. Most states require you to live in the property for a continuous period (usually 6 to 12 months) after purchase.

The FHOG application process is typically handled by your lender or broker as part of the loan application. The grant is usually applied at settlement, reducing the amount you need to fund from your own savings. Some states allow you to apply directly through the state revenue office if you are not obtaining a home loan.

In Australia, the First Home Guarantee (FHBG), formerly known as the First Home Loan Deposit Scheme (FHLDS), is a federal government initiative administered by Housing Australia. It allows eligible first home buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the property's value, bridging the gap between the borrower's deposit and the 20% threshold that usually triggers LMI.

This scheme can save first home buyers thousands of dollars. LMI on a $600,000 property with a 5% deposit can cost anywhere from $15,000 to $25,000, depending on the lender and the loan-to-value ratio. By using the FHBG, you avoid this cost entirely — the government guarantee replaces the need for LMI, and you do not have to repay the guarantee.

The FHBG has income caps: singles must earn no more than $125,000 per year, and couples must earn no more than $200,000 per year combined. There are also property price caps that vary by location — generally higher in capital cities and lower in regional areas. The scheme is available for both existing homes and new builds, which makes it more flexible than the FHOG.

• Buy with as little as 5% deposit and no LMI
• Government guarantees up to 15% of the property value
• Available for existing homes and new builds
• Income cap: $125,000 (singles) or $200,000 (couples)
• Property price caps vary by location
• Limited places available each financial year — apply early
• Australian program — must be a citizen and first home buyer

It is important to understand that the FHBG does not give you money — it guarantees a portion of your loan. You still need to save a genuine 5% deposit (gifts from family are generally accepted) and meet the participating lender's standard lending criteria. The guarantee remains in place until you have paid down your loan to 80% LVR or refinance to another lender, at which point the guarantee is released.

The Regional First Home Buyer Guarantee (RFHBG) operates on the same principles as the FHBG but is specifically targeted at buyers purchasing in regional areas. It recognises that regional buyers in Australia face unique challenges in the property market and aims to support homeownership outside of capital cities. Like the FHBG, it allows eligible buyers to purchase with a 5% deposit without paying LMI.

To be eligible for the RFHBG, you must be purchasing a property in a regional area as defined by the scheme. You must have been living in the regional area (or an adjacent regional area) for at least 12 months prior to applying. The income and property price caps are similar to the FHBG, though the property price caps tend to be lower in regional areas, reflecting the generally lower property values outside capital cities.

The RFHBG is available for both existing homes and new builds, and you do not need to be a first home buyer in the traditional sense — you need to not currently own a property, but you may have owned one previously. This makes it accessible to people who previously owned a home but sold it and are looking to re-enter the market in a regional area.

Like the FHBG, places in the RFHBG are limited and released each financial year. The scheme is available through participating lenders, and your broker can check eligibility and availability on your behalf. If you are considering a move to regional Australia and want to take advantage of more affordable property prices, the RFHBG can significantly reduce the upfront costs of buying.

The Family Home Guarantee (FHG) is an Australian federal scheme designed to help single parents and eligible single legal guardians buy a home with as little as a 2% deposit — without paying LMI. The government guarantees up to 18% of the property value, making it one of the most generous deposit-assistance programs available in Australia. Similar programs for single parents and low-income families exist in other countries, such as FHA loans in the USA and the shared ownership scheme in the UK.

This scheme recognises that single-parent families face particularly steep barriers to homeownership. Saving a 20% deposit on a single income while supporting dependants is extremely difficult, and the FHG addresses this by dramatically reducing the deposit requirement. A 2% deposit on a $500,000 home is just $10,000, compared to the $100,000 that would normally be needed to avoid LMI.

To be eligible, you must be a single parent or single legal guardian with at least one dependent child. You must be an Australian citizen aged 18 or over. You do not need to be a first home buyer — you may have owned property previously, as long as you do not currently own a home. There are income caps (currently $125,000 per year) and property price caps that vary by location.

The FHG is available through participating lenders, and places are released each financial year. Unlike the FHBG, the FHG tends to have more places available relative to demand because of its more specific eligibility criteria. Your broker or lender can check your eligibility and manage the application on your behalf. Combined with the FHOG and stamp duty concessions (where applicable), the FHG can make homeownership achievable for single parents who might otherwise have to wait many more years to save a traditional deposit.

Use our borrowing power calculator to estimate how much you could borrow as a single-income household and see what the repayments would look like at different deposit levels.

Property transfer taxes exist in many countries under different names: Stamp Duty in Australia and the UK, Transfer Tax or Recording Tax in the USA, Land Transfer Tax in Canada, and similar levies in New Zealand. Many governments offer concessions or exemptions for first home buyers to reduce this significant upfront cost. The details below focus on Australian stamp duty concessions as a detailed example, but buyers in other countries should check their local equivalent.

In Australia, stamp duty (also called transfer duty) is a state tax charged on property purchases and is one of the biggest upfront costs of buying a home. For first home buyers, most states and territories offer concessions — either a full exemption (no stamp duty) or a discount — depending on the value of the property. These concessions can save buyers tens of thousands of dollars and are separate from the FHOG.

These thresholds and concession amounts change periodically as state governments adjust their policies. Some states have recently increased their exemption thresholds to keep pace with rising property prices, while others have introduced time-limited concessions for specific buyer categories or property types. Always check the current thresholds with your state revenue office or conveyancer before budgeting for stamp duty.

In some states, the concessions apply only to first home buyers, while in others, concessions are available to other categories of buyers as well — such as pensioners downsizing, buyers of off-the-plan properties, or buyers in designated regional areas. Some states also offer the option of paying stamp duty as an annual land tax instead of a lump sum, which can be helpful for buyers who want to preserve their cash for the deposit.

The impact of stamp duty concessions on your purchasing power can be significant. On a $700,000 property in NSW, a first home buyer saves approximately $27,000 in stamp duty compared to a non-first-home buyer. That $27,000 can be redirected toward your deposit, reducing the amount you need to borrow and potentially helping you avoid LMI. Understanding how much stamp duty you will pay — or save — is an essential part of planning your property purchase. For a full breakdown of buying costs, see our hidden costs guide.

The Help to Buy scheme is a shared equity program announced by the Australian government (similar to the UK's Help to Buy scheme). Shared equity programs exist in multiple countries, including Canada's First-Time Home Buyer Incentive and various state-level programs in the USA. Under this scheme, the government contributes a portion of the purchase price of a home in exchange for a proportional equity share. This reduces the amount the buyer needs to borrow, lowering both the deposit requirement and the ongoing mortgage repayments. The government's equity share means it owns a percentage of the property alongside you.

Under the proposed structure, the government would contribute up to 40% of the purchase price for a new home or 30% for an existing home. The buyer would need a minimum deposit of 2%, and the remainder would be funded by a standard home loan. Because the government contributes a significant share of the purchase price, the buyer's loan is much smaller than it would otherwise be — and because the government's contribution is not a loan, there are no repayments on it.

For example, on a $500,000 new home, the government could contribute up to $200,000 (40%). The buyer would need a 2% deposit ($10,000) and a loan of $290,000. Repayments on a $290,000 loan are substantially lower than on a $490,000 loan, making homeownership more affordable on an ongoing basis.

The trade-off is that when you sell the property or choose to buy out the government's share, the government receives its proportional share of the sale price or current market value. If the property has appreciated, the government benefits from that appreciation in proportion to its equity share. You can buy out the government's share at any time by refinancing or using savings, and you are also required to buy it out if your income exceeds the eligibility threshold for two consecutive years.

Eligibility criteria include income caps (proposed at $90,000 for singles and $120,000 for couples) and property price caps that vary by location. The scheme is targeted at low- and moderate-income earners who are currently locked out of the housing market. Like other guarantee schemes, places are expected to be limited, and applicants will need to apply through participating lenders.

Applying for government home-buyer schemes is generally straightforward, but the process varies depending on which scheme you are using and which country or region you are in. In Australia, for federal schemes like the FHBG, RFHBG, and FHG, the application is made through a participating lender — your broker or bank handles the process as part of your home loan application. For the FHOG and stamp duty concessions, the application is typically managed by your lender or conveyancer and submitted to the state revenue office. In other countries, check your government's housing department website for application details specific to your programs.

The first step for any scheme is to confirm your eligibility. Review the criteria carefully, paying attention to income thresholds, property price caps, residency requirements, and the definition of "first home buyer" in the relevant legislation. If you are unsure about any criteria, speak to your broker, lender, or the relevant government agency. Applying for a scheme you are not eligible for wastes time and can delay your purchase.

• Confirm your eligibility for each scheme you intend to use
• Gather supporting documents: ID, income evidence, tax returns, and proof of residency
• Speak to a mortgage broker who is familiar with the schemes available in your country or region
• Apply through a participating lender (for FHBG, RFHBG, FHG) or via your conveyancer (for FHOG and stamp duty)
• Allow extra time in your purchase timeline for scheme approvals
• Check whether schemes can be combined — in many cases, you can use multiple schemes simultaneously

One important consideration is that some schemes can be combined. For example, you might use the FHBG (to avoid LMI), receive the FHOG (as a cash grant), and claim a stamp duty exemption (to reduce purchase costs) — all on the same property. The combined benefit of these three schemes could save you $40,000 or more. However, not all combinations are possible, and the rules differ by state, so confirm with your broker or conveyancer.

Timing is also important. For the FHOG, you generally need to apply within 12 months of settlement. For the guarantee schemes, you need a place reserved before you make an offer on a property. For stamp duty concessions, the application is usually lodged at or before settlement by your conveyancer. Your broker or conveyancer will manage these timelines, but staying informed helps you avoid any last-minute surprises.

Government schemes can make a genuine difference to your ability to buy a home. They reduce upfront costs, eliminate mortgage insurance, and in some cases provide direct financial assistance. Take the time to understand what is available in your country and region, check your eligibility, and factor these benefits into your purchasing plan. Buyers outside Australia should check government websites such as HUD.gov (USA), CMHC (Canada), Gov.uk (UK), or Kainga Ora (New Zealand) for equivalent programs in their country. Use our borrowing power calculator to see how these schemes change your numbers, and take the first step toward homeownership.