With some of the highest property prices in the country, buying your first home in NSW can feel unachievable. But don’t give up on the great Australian dream just yet, as there is government support available that can give you a leg up the property ladder. Here are some of the assistance options avaliable to first home buyers:
First Home Loan Deposit Scheme (FHLDS)
Saving for your first home is difficult. If you can’t come up with a 20% deposit, you typically have to take out lender’s mortgage insurance (LMI).
LMI is a one-off charge that’s included in your home loan to protect the lender from any financial loss should you default on the mortgage. The smaller your deposit, the higher your LMI payment.
However, under the FHLDS, eligible buyers only have to save a 5% deposit. The federal government guarantees the rest so you avoid paying thousands of dollars in LMI fees.
First Home Owner Grant (FHOG)
In NSW, the government offers a grant of up to $10,000 to eligible first home buyers who are buying or building a new home.
If you’re buying, the purchase price has to be under $600,000 to qualify. And, when building, the combined land and dwelling value has to be less than $750,000.
First Home Buyer Assistance Scheme (FHBAS)
Stamp duty is one of the biggest upfront costs Australian homebuyers face when they buy property. The tax is calculated as a percentage of the home’s purchase price and is often more than $10,000.
However, first-home buyers can get reductions or a full exemption from paying stamp duty thanks to the FHBAS.
First Home Super Saver Scheme (FHSSS)
The FHSSS can help you save towards a deposit by making extra contributions to your super, capped at $15,000 per financial year. You can then withdraw these extra contributions when it’s time to buy a home.
The scheme can help boost your savings as:
● You may pay less tax as voluntary super contributions are taxed at 15%
● The contributions can come from your pre-tax income
Contact me for full eligibility requirements by emailing David@thehomeloanguy.com.au or calling 02 9437 5410.