According to the ABS, there were 7,620 home loans written for first home buyers in South Australia in 2023. Through the SA First Home Owner Grant (FHOG), many of these buyers would have received a contribution from the state government of up to $15,000. If you're looking to buy your first property, you might also be eligible to benefit from the grant.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.79% p.a. | 5.83% p.a. | $2,931 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
5.74% p.a. | 5.65% p.a. | $2,915 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | |||||||||||
5.84% p.a. | 6.08% p.a. | $2,947 | Principal & Interest | Variable | $250 | $250 | 60% |
| Promoted | Disclosure |
What is the SA First Home Owner Grant?
The South Australian FHOG provides eligible first home buyers with up to $15,000 towards the purchase or construction of a new residential home.
In order to receive the grant, you must be either building your new home on vacant land or purchasing a newly constructed residential property. Houses, units, townhouses, duplexs, or off-the-plan apartments are all eligible purchases, but the market value of the home (including land) cannot exceed $650,000.
Since 2014, the grant has been unavailable for those purchasing an established home. However, in some cases renovations are considered substantial enough for the property to be considered new. If you're borrowing to renovate though, you will not be eligible. There is no means test on income or assets to qualify for the grant.
It's important to note there is only one grant available for one property transaction. Even if you're buying with your spouse or various polyamorous lovers, you're still only eligible for one $15,000 payment.
How do you qualify?
To be eligible for the grant:
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All applicants need to be 18 years of age or older.
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The property or land in question cannot have a market value over $650,000.
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At least one applicant must be an Australian citizen or permanent resident (New Zealand citizens permanently residing in Australia on a Special Category Visa can also apply).
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Neither applicant can have held an interest in Australian residential property before.
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Neither applicant can have received a first home owner grant in any state or territory.
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All applicants must reside in the home as the principal place of residence for a continuous period of at least six months. This must be done within 12 months of the date of settlement or the date construction is completed.
How do you apply for the SA First Home Owner Grant?
The most common way to apply for the SA FHOG is through an 'approved agent'. This basically means the bank or credit union providing your finance lodges the application on your behalf. If you need the grant before settlement or first progress payment, you'll need to lodge through an approved agent. You can find a list of approved agents here.
If you can't lodge through an approved agent (if you aren't getting a loan for example, or your lender isn't approved), applications for the SA FHOG can be made through the RevenueSA website by completing the First Home Owner Grant Application and Lodgement Guide. You'll need to provide information based on what your circumstances are, which will include:
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100 points of ID (birth certificate, passport, drivers license).
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Evidence you live in Australia (Medicare Card, debt/credit card).
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Evidence of residential address (utility documents, insurance policies).
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Evidence of relationship (if applicable).
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Contract to purchase a new home or an off-the-plan home (if applicable).
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Contract to build a home (if applicable).
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Copy of all major receipts for building costs during the construction of the home (if applicable).
When will the grant be paid?
If applying through Revenue SA, the grant will be paid:
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Within five days after approval of the application and evidence has been provided showing settlement has taken place when purchasing a new home or an off-the-plan home.
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Within five days after approval of the application and evidence providing foundations have been laid, when you have a contract to build.
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Within five days of RevenueSA approving the application and all evidence has been provided, if you're an owner-builder.
If applying through an approved agent, the grant will be paid:
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At the date of settlement, when purchasing a new home or an off-the-plan home.
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On the date of first progress payment by Approved Agent, when you have a contract to build.
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When an application with evidence has been provided to the Approved Agent, along with paperwork confirming the home is complete and ready to live in, if you're an owner-builder.
Can you use the grant for a deposit?
RevenueSA states there are no requirements as to how you use the grant so you could put the grant towards a deposit, but it's unlikely to cover the entire amount. As of April '24, the median property price in Adelaide was about $748,000, and $412,000 in the rest of South Australia. At those prices, $15,000 would mean a 2% and 3.6% deposit respectively, so considering most lenders need a 5% deposit at an absolute minimum, you'll still probably need to save a bit by yourself.
Lenders might also prefer to see evidence of genuine savings to demonstrate your financial discipline.
Can first home buyers get stamp duty discounts in SA?
On 1 June 2023, the South Australia Government introduced stamp duty relief for eligible first home buyers.
If the value of your home is below $650,000 ($400,000 for vacant land), you might be able to get rid of your stamp duty obligations altogether, while if the value is between $650,000 and $700,000 ($400,000-$450,000 for vacant land), it may be partially reduced.
The eligibility criteria is much the same as that for the FHOG, and does not apply for buyers purchasing established properties. According to RevenueSA, if you are eligible for the FHOG, you will likely be eligible for relief, while some people who aren't eligible for the FHOG may still qualify for relief. For example, if your property is valued between $650,000 and $700,000, you exceed the threshold for the FHOG but may be eligible for stamp duty concessions.
This is how much you might be able to save on stamp duty if you are eligible for relief, depending on the property value.
|
Property value (land and home) |
Normal stamp duty rate |
Duty payable |
First Home Owner Rate |
Duty payable |
Savings |
|---|---|---|---|---|---|
|
$450,000 |
$11,330 plus $5.00 for every $100 or part of $100 over $300,000 |
$18,830 |
Exempt |
$0 |
$18,830 |
|
$550,000 |
$21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
$24,080 |
Exempt |
$0 |
$24,080 |
|
$680,000 |
$21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
$31,230 |
Normal stamp duty rate - Stamp duty relief. Relief = S*(1-((MV-650,000)/50,000)) where S is the normal stamp duty rate and MV is the property value |
$18,738 |
$12,492 |
What other schemes and grants are available for first home buyers use?
There are a number of federally-funded schemes and grants that when used in conjunction with the SA FHOG can be a significant boost to your prospects of home ownership.
First Home Guarantee
The First Home Guarantee can allow first home buyers to secure a property with a smaller deposit, without paying LMI. The Government acts as a guarantor for up to 15% of the loan, which makes the loan less riskier from the lender's point of view.
There are 35,000 places up for grabs each year until at least June 2025, although only some lenders are eligible to participate in the scheme.
The Family Home Guarantee
The Family Home Guarantee was announced in the 2021/22 Federal Budget and gives single parents the opportuntity to secure a home loan with a deposit as small as 2% without having to pay LMI. It works in the same way as the First Home Guarantee whereby the Government acts as a guarantor for up to 18% of the loan.
There are 5,000 spots each year until at least 2025 and it it is restricted to owner-occupier, single-parent borrowers earning less than $125,000 annually.
The Regional First Home Guarantee
The Regional First Home Buyer Guarantee is designed to target first home buyers in regional Australia.
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 First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSSS) helps aspiring first home buyers save up a deposit by utilising the tax discounts that superannuation can offer. First home buyers can make voluntary contributions up to $15,000 each year towards the scheme, which are taxed at the superannuation rate (15%) rather than their marginal tax rate which is likely higher. When the time comes to buy a property, you can withdraw a maximum of $50,000, plus associated earnings.
Article first published 27 July 2021, updated 28 May 2024
First published on July 2021
Photo by Phil Graaf on Unsplash
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