Purchasing a first home is a significant milestone, and there are various government schemes, grants, and loan options available to assist first-time home buyers in Australia. Here is a comprehensive guide to these options:
Federal Government Schemes
First Home Guarantee (FHBG)
Description:
The FHBG (formerly known as the First Home Loan Deposit Scheme) allows eligible first-home buyers to purchase a home with a deposit as low as 5% without needing to pay Lenders Mortgage Insurance (LMI). Saving you thousands of dollars and potentially increasing your purchase price.
Eligibility:
Australian citizens who are first-home buyers and are earning less than $125,000 per year (or $200,000 for couples). Please check the criteria here.
First Home Super Saver Scheme (FHSSS)
Description:
This scheme allows first-home buyers to save for a home deposit inside their superannuation fund, benefiting from the tax advantages of super contributions.
Eligibility:
First-home buyers who meet the contribution and withdrawal rules of the scheme. You can withdraw up to $15,000 of your voluntary contributions from any one financial year, up to a total of $50,000 across multiple years. You can look check your eligibility here.
State Government Grants and Schemes
Seeking the assistance of a professional can help when trying to work out which grant or scheme that you may be eligible for. This is where a Mortgage Broker can really save you time and money. A lot of First Home Buyers do not realise that they may be eligible for a government grant and miss out on getting into the market. Not to mention a mortgage broker could help identify how to increase your borrowing capacity, especially in times of increasing interest rates.
Queensland First Home Owner Grant (FHOG)
Description:
Offers $30,000.00 for the purchase or construction of a new house, unit, or townhouse valued at less than $750,000.
Eligibility:
This is for first-home buyers purchasing a new property in Queensland. You must move into your brand new home as your principal place of residence within the first year of the completed transaction and live there continuously for 6 months. The eligibility criteria lives here.
Stamp Duty Concessions
Description:
Concessions on stamp duty for first-home buyers in various states. For example, in Queensland, there is no stamp duty for homes valued under $500,000.
Eligibility:
It varies by state but generally applies to first-home buyers purchasing below certain price thresholds.
Regional Home Building Boost Grant
Description:
A $5,000 grant for building a new home in regional Queensland.
Eligibility:
This is for first-home buyers building a new home in regional areas. Please check your eligibility here.
Guarantor Loans
Family Guarantee Loans
Description:
Allows first-home buyers to use a family member’s home equity as additional security for their mortgage, reducing the need for a large deposit.
Eligibility:
It depends on the lender but is generally available to first-home buyers with family members willing to act as guarantors. All lenders are not created equal in this area. This is a great product, and there are several lenders that do family guarantees really well. You can read a more in depth article on Guarantor loans here.
Tips for First-Time Home Buyers
- Understand Your Eligibility: Carefully check the eligibility criteria for each grant and scheme to ensure you qualify.
- Budget wisely: Consider all costs involved in purchasing a home, including stamp duty, legal fees, and moving costs.
- Seek Professional Advice: Consult with a mortgage broker to explore all your financing options and ensure you get the best deal.
By taking advantage of these grants, schemes, and loan options, first-time home buyers can significantly reduce the financial burden of purchasing their first home. Always stay informed about the latest updates and changes to these programs to make the most of the available assistance. At Home Loan advice we pride ourselves on taking the time to assist, educate and ensure that you understand the whole process. Please contact us anytime because our service is free and we will always work in your best interest.
Sources:
[First Home Loan Deposit Scheme]( https://www.housingaustralia.gov.au/support-buy-home/first-home-guarantee)
[First Home Super Saver Scheme]( https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme)
[Queensland First Home Owner Grant] (https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant)
– [Stamp Duty Concessions](https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/stamp-duty-concessions)
