First home buyer schemes: a primer

• A. Having owned property in the past five years
• B. Never having previously owned a home (or a property interest) in the country where you are applying ✓
• C. Having a minimum annual income of over $200,000
• D. Being a citizen of the country for at least 20 years

Why: First home buyer schemes generally target people who have never owned residential property, or held an interest in one, in the relevant country. Previous ownership usually disqualifies an applicant, regardless of when it occurred.

• A. To ensure buyers only purchase homes built before 1980
• B. To direct assistance toward modestly priced homes and limit the benefit flowing to higher-value properties ✓
• C. To guarantee that sellers receive a fixed profit margin
• D. To prevent banks from charging interest on home loans

Why: Price caps keep the scheme focused on affordable housing and reduce the risk that public support simply inflates prices at the top of the market. The caps typically vary by location, with higher limits in expensive regions.

• A. The applicant's favourite sporting team
• B. The applicant's total household income relative to an income threshold ✓
• C. The number of cars the applicant owns
• D. The applicant's university grades

Why: Many schemes apply income limits, often based on combined household income, to ensure assistance reaches people who genuinely need it. Thresholds can differ between single applicants and couples or families.

• A. A rental obligation
• B. An owner-occupancy requirement ✓
• C. A resale guarantee
• D. A development covenant

Why: Owner-occupancy requirements mean the buyer must live in the home as their primary residence, usually for a minimum period. Purchasing purely as an investment property typically makes an applicant ineligible.

• A. Schemes never consider deposit size when assessing applications
• B. Some schemes require applicants to have saved a minimum deposit or contribute a set share of the purchase price ✓
• C. Deposits must always be paid entirely in cryptocurrency
• D. A deposit disqualifies an applicant from every first home buyer scheme

Why: Many schemes require applicants to demonstrate savings or contribute a portion of the purchase price, which shows financial readiness and reduces lender risk. The specific minimum varies by scheme, so applicants should check the rules that apply to them.

• A. To provide ongoing rent subsidies to tenants
• B. To provide a one-off financial boost to help eligible buyers purchase their first home ✓
• C. To reduce the interest rate on all mortgages nationwide
• D. To fund the construction of public housing estates

Why: First home buyer grants are typically one-off payments designed to help eligible people overcome the upfront costs of buying their first property, such as deposit or purchase costs. They are not ongoing subsidies or general interest rate reductions.

• A. A permanent exemption from all income tax
• B. A reduction or exemption from stamp duty (transfer duty) on the purchase price ✓
• C. Free land provided by the government in every suburb
• D. An automatic doubling of the buyer's savings

Why: Many jurisdictions reduce or waive stamp duty, also called transfer duty, for eligible first home buyers. This lowers the upfront cost of purchase and is one of the most common concessions in first home buyer schemes.

• A. The buyer's favourite sporting team
• B. Whether the applicant has previously owned property and whether the property meets price or residency conditions ✓
• C. The colour of the buyer's car
• D. The number of social media followers the buyer has

Why: Eligibility usually depends on whether the applicant has never owned a home (or previously owned property, depending on the scheme), whether they will occupy the property as their residence, and whether the property falls within any price caps or location requirements.

• A. The buyer must sell their home within one year
• B. The buyer must live in the property as their principal place of residence for a set period ✓
• C. The buyer must rent the property to tenants
• D. The buyer must pay the grant back with interest immediately

Why: Schemes typically require the buyer to occupy the home as their principal place of residence, often for a minimum period. This ensures the grant supports owner-occupiers rather than investors. Breaching this condition may lead to repayment.

• A. Grant terms never change once published
• B. Eligibility criteria, grant amounts and price caps are often updated by governments and may vary by region ✓
• C. Grants are only available in the form of cryptocurrency
• D. Checking is only necessary if the buyer is over 60

Why: Government schemes are frequently revised due to budget changes, housing market conditions and policy priorities. Eligibility thresholds, grant values and property price limits can differ by state, region or year, so buyers should verify the current rules with the relevant authority.

• A. An annual tax on the value of a property owned
• B. A tax paid when purchasing property or land, based on the purchase price ✓
• C. A fee paid to a mortgage lender for arranging a loan
• D. A charge for registering a property's ongoing rental income

Why: Stamp duty (also called stamp duty land tax in some regions) is a one-off tax levied on property purchases, calculated on the purchase price. It is typically paid by the buyer at the time of completion.

• A. To eliminate all taxes on property transactions for everyone
• B. To reduce or remove the stamp duty payable so that first-time buyers can enter the property market more affordably ✓
• C. To increase the government's revenue from high-value property sales
• D. To reward buyers who purchase newly built homes only

Why: First home buyer relief schemes aim to make homeownership more accessible by reducing or removing the upfront stamp duty cost, which can otherwise be a significant barrier to saving for a deposit and buying a first home.

• A. The buyer must already own at least two other properties
• B. The buyer must never have previously owned a property anywhere in the relevant jurisdiction ✓
• C. The buyer must plan to rent out the property immediately after purchase
• D. The buyer must purchase at an auction only

Why: Most first home buyer schemes require that the purchaser has never owned a home (or an interest in one) in the relevant jurisdiction, and that the property will be used as their main residence. Rules vary by location, so eligibility should always be checked against current local rules.

• A. Because the rules never change once they are introduced
• B. Because relief thresholds, price caps and eligibility criteria can change over time and differ between jurisdictions ✓
• C. Because stamp duty is only payable by sellers, so buyers need not check
• D. Because relief is automatically applied without any need for the buyer to know the rules

Why: Stamp duty relief schemes are frequently revised by governments, with changes to price thresholds, maximum property values and eligibility criteria. Buyers should confirm the rules applying at the time of purchase in their specific region.

• A. Pay the full standard rate of stamp duty on the entire purchase price
• B. Pay no stamp duty at all, or a significantly reduced amount, on the property up to the scheme's threshold ✓
• C. Receive a cash payment from the government equal to the property price
• D. Be exempt from paying any mortgage interest for the life of the loan

Why: Full relief typically means no stamp duty is payable on a purchase within the scheme's qualifying price band, while partial relief reduces the amount owed. Relief does not provide cash payments or affect mortgage interest.

• A. The buyer rents the full property from the government at a fixed monthly fee
• B. The government or a lender contributes part of the purchase price, and in return holds a corresponding share of the property's value ✓
• C. The buyer receives a grant that never has to be repaid under any circumstances
• D. Several unrelated buyers jointly purchase one home and share the mortgage repayments equally

Why: In a shared equity scheme, a public body or lender funds a portion of the purchase price and owns a matching percentage of the property. The buyer owns the remaining share and typically repays the contributed portion later, often when the home is sold or refinanced.

• A. Purchase a initial share of the property, often between 25% and 75%, and pay rent on the remaining share ✓
• B. Pay the full market value in cash before any government involvement begins
• C. Rent the property for five years before being allowed to buy any portion of it
• D. Acquire 100% ownership immediately with no rent payable on any part of the home

Why: Shared ownership usually begins with the buyer purchasing a portion of the home, commonly between 25% and 75%, with a mortgage on that share. Rent is paid to the landlord (often a housing association) on the unowned portion, and buyers can later increase their stake through a process called staircasing.

• A. A legal requirement to climb a set number of floors before accepting ownership of a flat
• B. The process of gradually buying additional shares in the property until the buyer owns it outright ✓
• C. A penalty fee charged when the buyer moves out before the end of the mortgage term
• D. The fixed schedule on which the government reduces its equity stake each year without buyer input

Why: Staircasing allows the homeowner to purchase further shares of the property over time, increasing their ownership percentage. Once they reach 100%, they own the home outright and no longer pay rent on any portion, which is why it is a key feature of shared ownership.

• A. The property value must always rise, so the buyer cannot lose any money at sale
• B. The buyer may owe a share of any increase or decrease in property value, so a fall in prices can reduce what they receive on sale ✓
• C. The government automatically forgives all repayments after ten years regardless of circumstances
• D. Buyers are guaranteed to receive the full market value of the home when they sell it

Why: Because the public or lending partner owns a percentage of the property, the buyer's returns depend on the home's value when sold. If prices fall, the buyer shares in that loss proportionally, meaning they may receive less than they originally paid toward the property after the partner's share is settled.

• A. To help people who cannot afford a full mortgage on a market-priced home get onto the property ladder ✓
• B. To eliminate the need for mortgages entirely across the housing market
• C. To ensure that all homes are sold at the lowest possible price regardless of demand
• D. To transfer all residential property ownership from private individuals to public bodies

Why: These schemes aim to reduce the deposit and affordability barriers faced by first-time buyers. By lowering the amount that must be borrowed or saved, they make homeownership achievable for households who would otherwise be priced out of the market, while still giving them a stake in the property.

• A. To pay off the buyer's existing consumer debts
• B. To help buyers meet the upfront deposit required to purchase a home
• C. To cover the ongoing monthly mortgage repayments for the life of the loan
• D. To provide free land to people who build their own homes

• A. It reduces the interest rate on the buyer's savings account
• B. It allows the buyer to borrow a higher proportion of the property value, with the guarantor covering part of the lender's risk
• C. It transfers ownership of the property to the government until the loan is repaid
• D. It removes the need for the buyer to undergo any income or credit checks

• A. The buyer has paid 95% of the purchase price as a deposit
• B. The loan covers 95% of the property's value, so the buyer provides a 5% deposit
• C. The property value has increased by 95% since purchase
• D. The buyer must repay 95% of the loan within the first year

• A. To protect the buyer if their property loses value
• B. To protect the lender against loss if the borrower defaults and the sale proceeds do not cover the loan
• C. To pay the buyer's stamp duty on the purchase
• D. To guarantee the buyer a fixed interest rate for five years

• A. The applicant must already own at least two investment properties
• B. The applicant must not have previously owned a home in the relevant country
• C. The applicant must be over 65 years of age
• D. The applicant must intend to rent the property out immediately

• A. To confirm the borrower can afford the monthly repayments on their existing debts
• B. To verify the borrower has the capacity to cover a deposit and the costs of buying, and shows financial discipline ✓
• C. To determine which bank branch should process the application
• D. To calculate the exact interest rate the borrower will be charged for life

Why: Lenders look at savings history to confirm the deposit and purchase costs are genuinely saved (not borrowed), and that the borrower can manage money consistently. Regular saving over time is a strong signal of mortgage readiness.

• A. Legal or conveyancing fees
• B. Property inspection or survey fees
• C. Stamp duty or transfer tax where applicable
• D. Monthly mortgage repayments ✓

Why: Monthly repayments are ongoing costs paid over the life of the loan, not upfront costs. Legal fees, inspection costs and transfer taxes are one-off expenses that must be budgeted for at the time of purchase.

• A. Around 1% of the property price
• B. Around 5% to 20% of the property price, depending on the lender and scheme ✓
• C. Exactly 50% of the property price
• D. Only the amount of one year's salary

Why: Deposit requirements vary by lender and government scheme, but commonly range from about 5% to 20% of the purchase price. A larger deposit usually means lower borrowing, better rates, and sometimes no need for mortgage insurance.

• A. To ensure the government earns more tax revenue from property sales
• B. To direct assistance toward modest-priced homes and help those who most need support ✓
• C. To prevent buyers from ever securing a mortgage
• D. To guarantee that all homes in the scheme are identical

Why: Price caps keep the scheme targeted at first home buyers with limited means, rather than subsidising high-value properties. Buyers should check the cap in their area before budgeting, as it directly affects eligibility.

• A. Lenders require an emergency fund to be larger than the deposit
• B. It helps cover unexpected costs like repairs or income interruptions, reducing the risk of missing mortgage payments ✓
• C. It removes the need to pay any monthly mortgage repayments
• D. It automatically increases the government grant amount

Why: Homeownership brings unexpected costs such as repairs, maintenance, and possible job or income disruption. An emergency fund protects against falling behind on repayments, which can otherwise lead to serious financial consequences.

• A. Choosing a property with a swimming pool
• B. Incomplete or late paperwork for loan approval and conveyancing ✓
• C. Buying in a suburb with too many schools
• D. Hiring a real estate agent who is too experienced

Why: Incomplete documentation for lenders and conveyancers is a frequent cause of delays. Gathering identity, income, and savings records early helps keep the purchase on schedule.

• A. Grants are always paid in cash before settlement
• B. Eligibility criteria such as income caps, property price limits, or residency rules may not be met ✓
• C. Schemes only apply to investment properties
• D. Grants can be claimed after the property is sold

Why: Many first home buyer schemes have strict eligibility rules, including income thresholds, maximum purchase prices, and residency requirements. Failing to check these before committing can leave a buyer without the expected assistance.

• A. It is a legal requirement that voids the contract if skipped
• B. Hidden defects such as termite damage or structural problems may only be discovered after settlement ✓
• C. Inspections are only needed for commercial property
• D. It prevents the lender from approving the loan

Why: Structural issues and pest damage are often hidden from view. Without an inspection, a buyer may inherit costly repairs that could have been negotiated on or avoided entirely.

• A. Immediately move into the property before settlement
• B. Withdraw from the contract within a set timeframe, often with a small penalty ✓
• C. Extend the loan term without bank approval
• D. Demand the seller pay all moving costs

Why: A cooling-off period gives buyers a limited window to reconsider after signing, usually with some fee deducted. Rules vary by jurisdiction, so buyers should confirm the terms before signing.

• A. Ordering new furniture for the home
• B. Getting pre-approval for a home loan so you know your realistic budget ✓
• C. Changing your bank account to a different provider
• D. Informing neighbours of your plans

Why: Loan pre-approval establishes how much you can borrow and strengthens your offer. Without it, buyers risk bidding beyond their means or losing properties because financing falls through.