First Home Buyers Grant: what does it all mean?

AdviceNews

13.08.21

In this blog, we outline what the First Home Buyers Grant is and what it means for you.

You may have plowed through a plethora of information to find out more about the First Home Buyers Grant. With both State and Commonwealth Governments introducing new schemes while making old ones obsolete every few months, it can be difficult to keep up with the latest.

With official websites filled with technical jargon and excessively long explanations, researching can be somewhat difficult for those looking to take advantage of the First Home Buyers Grant.

To that end, here’s a simple explanation of what’s available to you on the First Home Buyers Grant along with other related concessions in NSW.

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What is the First Home Buyers Grant?

The First Home Buyers Grant* is a $10,000 grant available for first home buyers. If you’re buying a new home, the total house and land value can be up to $750,000. This is an ideal opportunity to build a new home and/or buy off-the-plan to receive a one-off payment of $10,000 from the Office of Revenue.

Well before receiving the First Home Buyers Grant, you can also take advantage of several programs to help you jump onto the property ladder and buy your first home.

We’ve dug a little deeper to also include Commonwealth schemes to help you save for a deposit faster and acquire mortgage lending under special circumstances. Take a look at what’s available.

What is the First Home Super Saver scheme?

To help those who find it virtually impossible to save a 20 percent deposit, the First Home Super Saver* scheme allows first home buyers to fast-track savings by leveraging their super fund.

You can save up to $15,000 a year with a total cap of $30,000 by making regular contributions to your super. As a result, you get a savings boost based on voluntary contributions at a lower tax rate. In some cases, you could potentially bolster savings by an extra $2000-5000 in total.

What is the First Home Loan Deposit scheme?

Also known as the New Home Guarantee, the First Home Loan Deposit* scheme helps those struggling to put together a 20 percent deposit receive lending.

With the Commonwealth Government guaranteeing up to 15 percent of your loan, you can take out a mortgage with as little as 5 percent deposit in savings.

Applicable for Australian citizens and owner-occupiers only, the First Home Loan Deposit scheme allows you to buy a home with less than the standard 20 percent deposit without having to pay for Lender’s Mortgage Insurance (LMI).

This can save first home owners thousands of dollars in LMI fees, which ultimately makes it a little bit easier to get a foot into the property market.

New homes including off-the-plan dwellings as well as house and land packages where separate contracts exist are considered eligible under the scheme. Just be sure to check the property price cap in the suburb you’re looking to buy in, which applies for the 2021-22 financial year.

What is the HomeBuilder scheme?

If you’re building a new home, buying off-the-plan or have purchased a house and land package where the contract commenced between 4 June and 31 December, 2020, you can apply for a $25,000 HomeBuilder* grant.

In 2020, we sold numerous house and land packages across north west and south west Sydney. First home buyers whose contracts are exchanged during this window of time may be eligible to apply for the $25,000 grant.

What is the First Home Buyer Assistance scheme?

Also known as the NSW Stamp Duty concession, the First Home Buyer Assistance* scheme allows full or partial stamp duty exemption if the value of the home is no more than $800,000.

In NSW, first home buyers are eligible when buying an existing home, buying a new home or purchasing vacant land where you intend to build a home.

If you purchased vacant land from 1 August 2020 to 31 July 2021, you can apply for the First Home Buyer Assistance Scheme, keeping in mind it is applicable if the value is up to $400,000.

Hopefully, this article has given you a brief overview of what’s available for first home buyers. For your benefit, it’s worth verifying the exact details of eligibility and what you’re entitled to on the NHFIC and Revenue NSW website as it can change without notice.

If you have any questions about building your first home and need help understanding the concessions available, call us today on 1300 30 11 38.

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*Information is current and up-to-date at the time of writing August, 2021