It’s a hard slog breaking into the property market but there are a number of government schemes and concessions that support first home buyers to purchase their own homes.

The Tasmanian government’s First Home Owner Grant offers the biggest cash boost of all the state programs (along with Queensland) and can make a considerable contribution towards getting you into your first home. Let’s check the details.

How much is the First Home Owner Grant in Tasmania?

Until 30 June 2024, the Tasmanian First Home Owner Grant offers $30,000 to first home buyers who purchase or build a new home. Under the scheme, a new home is one that has not previously been occupied or sold as a place of residence. The grant is not available for existing or established homes.

Unlike many other states and territories, there is also no price limit on the value of your first home to be eligible for Tasmania’s First Home Owners Grant. Similarly, your income also does not affect eligibility for the grant.

First Home Owner Grant eligibility

All applicants for the grant must meet the eligibility criteria:

  • Apply as a person, not a company

  • Be at least 18 years old

  • At least one applicant be an Australian citizen or permanent resident

  • Occupy the home as your principal place of residence for a continuous period of at least six months commencing within 12 months of an eligible transaction

  • You or your partner must not have owned a residential property in Australia before 1 July 2000

  • You or your partner must not have owned and occupied a residential property for more than six months in Australia after 1 July 2000

  • You or your partner must not have received the first home owner grant before

How to apply for the First Home Buyer Grant in Tasmania?

To apply for the First Home Owner Grant, you can lodge an application through an approved agent (your lender or mortgage broker). Alternatively, you can lodge your own application through the Tasmanian State Revenue Office.

When is the grant paid?

If the application is lodged via the State Revenue Office, the grant will be paid after completion of the eligible transaction. Earlier payment may be authorised by the Commissioner if deemed appropriate.

If your application was lodged by an approved agent (generally the lender you’re financing with), the payment will be made when:

Contract to build

Payment is made following completion of the laying of the foundations (typically the first progress payment).

Purchasing a new home or an off-the-plan home

The grant is paid to your financial institution on settlement of your property.

Owner builder

Payment is made on receipt of an occupancy certificate.

Can first home buyers get stamp duty discounts in Tasmania?

Receiving stamp duty discounts in Tassie all comes down to the type of home you buy.

If you buy or build a new home, you’re eligible for the First Home Owner Grant but cannot receive stamp duty concessions.

But if you’re a first home buyer purchasing an established home, you may be eligible for stamp duty concessions, but cannot claim the First Home Owner Grant.

First home buyers who buy an existing home valued at $600,000 or less can receive a 50% discount on stamp duty. To qualify, the buyer must occupy the home as their principal place of residence for a continuous period of six months, beginning within 12 months of the transfer. Further, if you’re purchasing as a couple, both parties must be first-time buyers to receive the concession.

Applications can be submitted electronically or by mail.

What other schemes and grants can first home buyers use?

The Regional First Home Guarantee

The federal government’s Regional First Home Buyer Guarantee is designed to target first home buyers in regional Australia (outside of greater capital cities).

With the Regional First Home Guarantee, 10,000 guarantees each year will help first-home buyers purchase a regional home with as little as 5% loan deposit without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of up to 15%.

The Family Home Guarantee

The Family Home Guarantee allows single parents to secure a home loan with as little as a 2% deposit (via a government guarantee of up to 18%). Launched on 1 July 2021, 5,000 spots will be available every financial year until June 2025. You don’t have to be a first-time buyer to access the scheme and can’t have an annual income exceeding $125,000. The loan must be repaid through principal and interest repayments and can’t be longer than 30 years.

The First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS) helps first home buyers save up a deposit by utilising the tax discounts that superannuation can offer. Essentially, it allows first home savers to salary sacrifice up to $15,000 per year towards the scheme at a discounted tax rate of only 15% (instead of their marginal tax rate).

When they’re ready to buy a house, up to $50,000 can be released from the scheme (plus any earnings they’ve made in that time).

Finding a competitive home loan

An important factor in any first home purchase is finding a loan that offers a competitive interest rate and is best suited to your needs. The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
 Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
 Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
6.02% p.a.
$2,396
Principal & Interest
Variable
$0
$77
95%
5.92% p.a.
5.98% p.a.
$2,378
Principal & Interest
Variable
$0
$400
90%
5.94% p.a.
5.95% p.a.
$2,383
Principal & Interest
Variable
$0
$0
90%
No hidden feesFree redraw facility
6.49% p.a.
6.57% p.a.
$2,526
Principal & Interest
Variable
$0
$995
95%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Peter Robinson via Pexels

This article was published by Hanan Dervisevic in November 2022 and updated by Denise Raward in June 2024.



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