What Assistance Is a First Home Buyer Entitled To?

Buying your first home can be overwhelming. Not only do you need to decide on the type and location of your property, but you also must understand how to finance it.

There are several incentives to assist First Home Buyers to get into their first home sooner. Some incentives are national, whereas others are state-based. Some lenders even offer incentives just for First Home Buyers.

It is no wonder it’s overwhelming to understand what you may be eligible for!

Below we have put together a snapshot of some of the incentives available. If you want to chat about your eligibility, book an appointment with our team, and we can walk you through what your options are.

Australia-wide assistance to First Home Buyers

The National Housing Finance and Investment Corporation (NHFIC) is a government body that administers these three Schemes on behalf of the Australian Government.

These schemes are currently scheduled to close on the 30th of June, 2022. It is important to note that the following support is in the form of a guarantee. Not a cash injection.

If you have less than a 20% deposit, you would typically require Lenders Mortgage Insurance (LMI). However, under the following schemes, the NHFIC will guarantee approved purchasers. Meaning you may be able to secure a loan with as little as a 5% deposit without being required to pay LMI.

This guarantee is not a cash payment or a deposit for your home loan.

Not all lenders participate in the following schemes, so it is essential to review all your options and ensure you can access the most suitable loan choices for your circumstances.

First Home Loan Deposit Scheme

This scheme is designed to support you to buy your first home sooner. Under this scheme, part of an eligible first home buyer’s home loan from a Participating Lender will be guaranteed by NHFIC. This is aimed at enabling you to purchase your first home sooner, by being able to access finance with as little as a 5% deposit.

10,000 First Home Loan Deposit Scheme places were made available to eligible first home buyers between the 1st of July 2021 to the 30th of June 2022.

However, the Australian Government announced they extended this with 4,651 additional guarantees to support first home buyers who haven’t had an opportunity to purchase their first home.

New Home Guarantee

This scheme is designed to support you to build or buy a new home, with higher property price caps available in selected areas.

Under this scheme, part of an eligible first home buyer’s home loan from a Participating Lender will be guaranteed by NHFIC. This is aimed at enabling you to purchase your first home sooner with as little as a 5% deposit.

Family Home Guarantee

This scheme aims to support eligible single parents with at least one dependent child in purchasing a family home, with a deposit of as little as 2%.

The Family Home Guarantee aims to support eligible single parents with at least one dependent child in purchasing a family home, regardless of whether that single parent is a first home buyer or a previous homeowner.

10,000 Family Home Guarantees will be made available over four financial years from the 1st of July 2021 to the 30th of June 2025.

Under this scheme, part of an eligible home buyer’s home loan from a Participating Lender will be guaranteed by NHFIC. This is aimed at enabling you to purchase your first home sooner by saving as little as a 2% deposit.

Super Saver Scheme

The First Home Super Saver Scheme allows first-home buyers to make up to $30,000 in voluntary contributions to their Superannuation to save for a home, with a limit of $15,000 per financial year.

Voluntary contributions to your Super are taxed at a lower rate than your income. The Super Saver Scheme was established to allow first-home buyers to save money faster. Applicants are also entitled to access any earnings on their extra contributions to put towards purchasing their first home as well.

You must meet the eligibility requirements to apply for the release of these amounts.

State-based Support

Each State has its own First Home Buyer support packages, which can take shape as concessions, exemption, boosts or co-contribution.

Let’s take a closer look at those available in Queensland and Victoria:

Victoria

First home buyers may be eligible for Stamp Duty Concessions for new or established properties:

Homes valued up to $600,000 could be eligible for a full concession and pay $0 in Stamp Duty
Properties valued between $600,000 and $750,000 maybe eligible for a concession on their Stamp Duty

First Homeowners Grant

$10,000 for eligible First Home Buyers who buy or build their first new home valued up to $750,000

Queensland

First home buyers may be eligible for Transfer Duty Concessions, which can be applied to new or established properties:

No Transfer Duty is payable on all eligible properties valued up to $500,000
Concessions are available for homes valued between $500,000 and $550,000

First Homeowners Grant

A one-off grant of $15,000 for eligible first home buyers purchasing or building a new home valued up to $750,000
$5,000 may be granted after you buy or build a new home worth less than $750,000

Non-government incentives for first home buyers

It’s not just governments offering first home buyer incentives. Some banks and lenders may also extend financial incentives such as bonuses.

We can help you navigate the mortgage landscape to help you understand the most suitable options for your circumstances without the stress.

Disclaimer:

Terms are subject to approved persons only. This information is true and correct as of 8/01/2022. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.