Help & information
First Home Builders
1. Government Grants & Schemes
First Home Owner Grant (FHOG):
The Victorian Government offers a $10,000 grant to eligible first home buyers who purchase or build a new home valued up to $750,000. To qualify, the property must not have been previously sold or occupied as a residence. This includes houses, townhouses, apartments, units, or similar dwellings. Applicants and their spouses or partners must not have previously received the FHOG or owned a home in Australia. The grant aims to assist with the initial costs of purchasing or constructing a new home.
First Home Guarantee (FHBG)
Administered by Housing Australia, the First Home Guarantee allows eligible first home buyers to purchase a home with a deposit as low as 5%, without the need for Lenders Mortgage Insurance (LMI). For the financial year 2024-25, 35,000 places are available under this scheme. The government guarantees up to 15% of the property's value, enabling buyers to secure a home loan with a smaller deposit. Eligibility criteria include income thresholds and property price caps, which vary depending on the location of the property.
Regional First Home Buyer Guarantee (RFHBG):
This initiative supports eligible first home buyers in regional areas to purchase a home with a deposit as little as 5%, also without paying LMI. For the financial year 2024-25, 10,000 places are allocated to this scheme. The RFHBG aims to encourage homeownership in regional communities, with specific property price caps applicable to different regional locations
Family Home Guarantee (FHG):
The Family Home Guarantee assists eligible single parents or single legal guardians with at least one dependent to purchase a home with a deposit as low as 2%, without requiring LMI. For the financial year 2024-25, 5,000 places are available. This scheme is designed to support single parents in achieving homeownership, even if they have previously owned property. Income thresholds and property price caps apply, varying by location.
Stamp Duty Concessions and Exemptions
In Victoria, first home buyers may be eligible for stamp duty concessions or exemptions, depending on the property's value:
Full Exemption: For new or established homes valued below $600,000, first home buyers may receive a full exemption from stamp duty.
Concession: For homes valued between $600,001 and $750,000, a concessional rate of stamp duty applies, with the amount decreasing as the property value increases. These concessions significantly reduce the upfront costs associated with purchasing a home.
It's important for prospective first home buyers to verify their eligibility for these programs and understand the specific application processes. Consulting with financial advisors or mortgage brokers can provide personalized guidance tailored to individual circumstances.
2. Using Your Super
The First Home Super Saver Scheme (FHSSS) allows first home buyers to save for a deposit through their superannuation account, potentially reducing income tax and boosting savings. Buyers can voluntarily contribute up to $15,000 per financial year (up to a total of $50,000) into their super fund, which can later be withdrawn for a home deposit. Since super contributions are taxed at 15%, rather than standard income tax rates, this strategy can help buyers save faster. The Turnkey Home team can guide you through using your super as part of your deposit strategy, ensuring you meet compliance requirements and maximize benefits.
3. Financing Your First Home
When financing your first home, it’s important to explore different home loan options, such as variable, fixed, or split-rate loans. Lenders assess your borrowing capacity based on income, expenses, savings history, and credit score. You’ll need a deposit, usually 5-20% of the property’s value, and to demonstrate genuine savings. Turnkey Home’s finance partners offer a wide range of mortgage products from over 25 lenders, helping you find the best interest rates, structure your loan effectively, and guide you through the application process. This ensures you make informed decisions and secure financing that matches your budget and lifestyle.
4. Deposit Requirements
The minimum deposit requirement for first home buyers is generally 5% of the property’s value, although a 20% deposit is preferred to avoid Lenders Mortgage Insurance (LMI). However, with initiatives like the First Home Guarantee, eligible buyers can purchase with a 5% deposit without LMI costs. Turnkey Home can assist you with understanding deposit options, including using your superannuation or accessing government support. It’s also crucial to consider additional upfront costs, such as stamp duty, legal fees, and moving expenses, to ensure you are financially prepared when buying your first home.
5. Understanding House & Land Packages
A House & Land Package involves purchasing land and building a home in one streamlined process, usually under two separate contracts. This approach offers benefits like fixed pricing, simplified construction, and access to new estates. With Turnkey Home, you receive a 100% fixed price upfront, meaning all costs for site preparation, landscaping, fencing, and inclusions are accounted for from day one. This transparency provides peace of mind, helping you avoid the hidden costs and budget blowouts often associated with retail builders
6. Building vs. Buying Established
When deciding between building a new home or buying an established property, consider budget, timeline, and personal needs. Building offers customization, new home warranties, and potential stamp duty savings, while buying established provides immediate availability and may offer location advantages. Turnkey Home specializes in new builds, offering fixed-price packages and 100% turnkey solutions to ensure a smooth building process. The choice depends on whether you value the flexibility of a custom-built home or the speed of moving into an existing property.
7. Additional Costs to Consider
Beyond the purchase price, first home buyers need to budget for additional costs, including stamp duty, conveyancing fees, loan establishment fees, and moving expenses. When building a new home, you may also encounter site costs, landscaping, fencing, and utility connections. At Turnkey Home, our 100% fixed price packages include all these costs, providing a comprehensive solution with no hidden fees. Planning for these expenses ensures you have enough savings and financial stability throughout the home-buying process.
8. Turnkey Homes vs. Retail Builders
The Turnkey Home model offers complete transparency, providing a fixed price upfront that includes all costs—from fencing and landscaping to appliances and inclusions. Retail builders often provide only a base price, with additional costs for site works, upgrades, and finishing touches, potentially leading to budget blowouts. The Turnkey approach eliminates surprises, ensuring your budget stays on track, and delivering a 100% complete home that’s ready to move in or rent out.
9. Navigating the Buying Process
The home buying process involves several key steps, including researching properties, securing finance, signing contracts, and settling the purchase. It’s important to work with trusted professionals, including buyers agents, finance brokers, and conveyancers, to ensure everything is managed properly. Turnkey Home offers a guided approach, helping you from the first consultation through to receiving the keys, ensuring nothing is overlooked and every step is clear and straightforward.
10. Building Inspections and Permits
Before construction begins, your new home requires building permits and may be subject to inspections by licensed professionals. This ensures the property complies with building codes and is safe to occupy. Turnkey Home with its builders, handles permit applications, coordinates independent inspections, and ensures all work meets standards, so you can have peace of mind throughout the build process.
11. The Role of a Buyers Agent
A Buyers Agent acts as your advocate during the home-buying process, helping you find the right property, negotiate prices, and navigate contracts. At Turnkey Home, we specialize in construction projects, offering expert guidance and negotiating power to secure the best deals with award-winning builders. Our role is to simplify the process, avoid common pitfalls, and ensure you receive real value from your investment.
12. Maximizing Your Budget
With Turnkey Home’s real value offers, first home buyers can maximize their budget by taking advantage of incentives like the $19,000 home upgrade cash offer, stamp duty support, and fixed-price packages. These offers reduce upfront costs, provide flexibility in spending, and help stretch your budget further, enabling you to afford more features or reduce financial pressure during the building process.
13. Understanding the Contract of Sale
The Contract of Sale is a legally binding document that outlines the terms and conditions of purchasing a property. It’s crucial to review this document thoroughly, paying attention to inclusions, special conditions, deposit requirements, and settlement dates. The Turnkey Home appointed Conveyancer, will guide you through the contract, explaining key clauses, and ensuring you fully understand your rights and obligations before you sign anything
14. The Settlement Process
During settlement, the final transfer of property ownership takes place. Your conveyancer will coordinate with the seller, finalize legal documents, and ensure all payments are processed. This is when the land transfers into your name. Turnkey Home works closely with finance brokers, legal representatives and your Builder to ensure a smooth settlement process, giving you a stress-free transition into an exciting site start.
Calculators
Here are some calculators to help you make informed decisions.
In this section, you'll find calculators designed to give you a clear insight into all associated costs, from stamp duty and mortgage risk fees to construction interest costs. You can also estimate your mortgage repayments, helping you budget effectively and make informed financial decisions throughout your home-buying journey.
Using our Cost & Interest Calculator provides first home buyers and investors with a comprehensive overview of all associated costs when building a home, including stamp duty, mortgage risk fees, and the total interest payable during the construction period. By entering key financial details, users gain clarity on upfront expenses, hidden costs, and the impact of interest payments while building. This valuable insight helps in budgeting accurately, comparing financing options, and making informed decisions, ultimately ensuring that buyers are financially prepared and can avoid surprises throughout the home-building journey.
Our Cost & Interest Calculator goes beyond basic mortgage repayments by offering a detailed insight into your overall affordability. By accurately entering your net income and expenses, this tool can help you understand your financial capacity, ensuring you have a clear picture of what you can afford. It not only shows repayment amounts but also highlights potential risks, giving you the confidence to plan your budget and make informed decisions before committing to a home purchase.