Using the First Home Super Saver scheme and First Home Guarantee to help secure your first NT property.
First home buyer? Take advantage of government initiatives to get your first home sooner.
First home buyer grants
The Northern Territory First Home Owner Grant is a financial assistance program offered by the NT Government. It’s a one-off payment of $10,000 and is designed to help first-time purchasers in the Territory build or buy a brand new home (or one that has not been lived in).
Upfront cost help
Territory residents looking to buy their home may be able to take advantage of the First Home Guarantee, which can reduce the required deposit needed and mean you don’t have to pay expensive Lenders Mortgage Insurance. You may also be eligible for a stamp duty concession if you’re buying a home and land package under the NT House and Land Package exemption.
Tax help with saving
First Home Super Saver (FHSS or FHSSS) is the Federal Government’s scheme to assist with saving for the deposit by providing a tax rate generally set at 15%, well below normal income tax rates.
Paolo decides the time is right to settle down and buy his first home – right here in Darwin.
He’d prefer a brand new place and looks at a few newly built apartments. The one he likes the most is selling for $570,000, so he goes about buying it, using the following steps:
Tip – FHSS works best when you start saving for your property well in advance.
How does the First Home Super Saver Scheme work?
To buy a property you need a deposit. That’s why the Australian Government’s FHSS scheme was created. FHSS gives you the opportunity to withdraw specific parts of your super, to pay for your deposit.
You’re only able to use super that you have personally contributed (i.e. not from your employer).
A common method is to transfer money from your salary or savings to your super (and potentially pay less tax on it), and then when the time is right, withdraw from it to pay your home deposit.
FHSS works with the Northern Territory’s government programs to help get eligible home buyers onto the property ladder.
How do I save using the FHSS?
Saving through the FHSS can have advantages immediately, because of the tax advantages of making voluntary contributions to your super.
You can do this by salary sacrificing, or by contributing from your earnings and claiming a tax deduction. In both cases, those contributions are taxed at the reduced rate of 15% instead of the higher income tax rate.
So, not only do you pay less tax when you voluntarily contribute, but you’re also adding to the super you could withdraw via the FHSS.
Note, there are limits on how much you can contribute to your super each year.
What is the First Home Guarantee?
First Home Guarantee is a Federal Government program designed to reduce the upfront cost of buying a first home. Eligible Australians can purchase their first home with a deposit of just 5%, without needing lenders' mortgage insurance.
The program is known as FHBG to avoid confusion with other programs.
How does the First Home Guarantee work?
The First Home Guarantee (FHBG) is a valuable initiative for first home buyers, and it can be useful in helping you to save for a deposit and get a mortgage.
It enables first-time buyers to purchase a home with a deposit of as little as 5%, rather than the usual 20% required by most lenders to dodge costly mortgage insurance.
What are the eligibility criteria?
Generally, when applying for the First Home Guarantee (also known as First Home Loan Deposit Scheme or FHLDS) in the NT, you’ll need to make sure you meet the following criteria:
Only residential dwellings are eligible, for example:
In the Northern Territory in 2023, your property cannot be valued at more than $600,000 to be eligible.
Check out the First Home Guarantee website for full eligibility details.