Buying a House in Australia
Money and Finance

First Home Owner Grant
Anyone buying a house in Australia for the first time, including migrants who have permanent residence, is eligible for the First Home Owner Grant of $7,000. This sum is paid directly to the buyer of a house. (The grant is not payable for land purchases.)

How Much Can I Borrow?
The amount of money you can borrow for a mortgage depends on the lender. Most lenders use your salary to decide the maximum amount they will lend you. On average, lenders in Australia allow couples to borrow five times their joint pre-tax income. Some will lend more, some less. If you need a mortgage, many lenders prefer you to be settled into a job for a few months before offering you a mortgage.

Stamp Duty on the Purchase
When you buy a house, you will have to pay tax on the purchase price. This is called Stamp Duty. First time buyers, especially of lower priced properties, may get a discount on stamp duty. Discounts are highest in Queensland, New South Wales and Western Australia; no stamp duty is paid by first time buyers in these states, provided the property price or value is less than $500,000. The rate of stamp duty you pay depends on the house price. The more expensive the house, the higher the rate of tax. Each Australian state levies stamp duty at different rates.

For example, a buyer in 2008 would pay Stamp Duty on a $500,000 property as follows:

Stamp Duty on $500,000 House

For a $250,000 property, stamp duty is as follows:

Stamp Duty on $250,000 House