First home buyers – make the most of current grants and incentives
With interest rates and the cost of living increasing, it’s vital that first home buyers take advantage of every opportunity to save on costs.
Here are some of the grants and schemes avaiable that can help first home buyers get into their first property.
First Home Owners’ Grant
This is a national scheme whereby a one-off grant is payable to first home owners. This payment can contribute to the deposit of the purchase of this first home, when certain criteria are met. Each state has different payments and requirements so make sure you check out what’s applicable to you.
The First Home Guarantee (previously the First Home Loan Deposit Scheme) – This scheme allows 35,000 eligible first-home buyers each year to purchase a new or existing home with a deposit of just 5%, without paying tens of thousands of dollars in Lenders Mortgage Insurance (LMI).
Family Home Guarantee – provides eligible single parents (with dependants) the opportunity to build a new home, or purchase an existing home. This is done with a deposit of 2 percent, regardless of whether that single parent is a first home buyer or previous owner-occupier.
The Regional First Home Buyer Support Scheme
This (similar to the First Home Guarantee) will allow a buyer to purchase a home with as little as a 5% deposit and avoid paying lenders mortgage insurance (LMI). There are 10,000 places per year under this scheme.
The First Home Super Saver Scheme
This scheme allows you to save toward your deposit within your superannuation fund (through voluntary contributions) and reduce your taxable income. You can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home. A single person can make super contributions of up to $15,000 per year and the maximum amount of contributions that can be withdrawn under the scheme is broadly $50,000 for individuals.
If you know someone keen to get into the property market for the first time, or have any further questions – we’re here to help.