Buying your first home will likely be the largest financial commitment most people will enter.
As such, it pays to be aware of the various State and Federal government grants and schemes that are available to help first-time home buyers.
First Home Buyers Assistance Scheme
One of the largest upfront costs facing property buyers is Transfer or Stamp Duty.
In NSW, eligible first home buyers can receive a full exemption from transfer duty on new and established properties purchased for to $800,000. This represents a potential saving of over $30,000.
For properties purchased between $800,000 to $1,000,000, concessional rates apply.
With vacant residential land, eligible buyers may have duty exempt on purchases up to $350,000 with concessional rates applied up to $450,000.
First Homeowner Grant
Eligible first home purchases may receive a one-off payment of $10,000 for newly built or substantially renovated homes purchased for less than $600,000 or up to $750,000 if purchased as a new house and land package.
Shared Equity Home Buyer Helper
This NSW state government scheme is designed to assist eligible first home buyers employed in key industries (e.g. nurses and teachers) or single parents, single people 50 years and over, or victim-survivors of domestic abuse.
Under this scheme, the State government will contribute up to 40% of the purchase price of an eligible property with a minimum 2% deposit.
With the government taking equity in the property, the scheme is designed to assist eligible buyers on lower incomes to take out affordable mortgages. At the moment, there are 2 participating lending in this program.
The Home Guarantee Scheme
This Federal scheme aims to assist eligible first home buyers to purchase a home, with a deposit of as little as 5% without the need to pay Lenders Mortgage Insurance which would normally apply for borrowings where lending is greater than 80% of the value of the property.
Under this scheme, qualified applicants can apply for a loan through one of 33 participating lenders, with the Federal Government-owned Housing Australia providing a guarantee for the remaining 15%. Property price thresholds apply, with the $900,000 being the maximum for Sydney and NSW regional centres.
First Home Super Saver Scheme
To assist with a deposit, this scheme allows eligible first home buyers to potentially access up to a maximum $50,000 of voluntary contributions made to a superannuation fund. These funds can be used to contribute towards the purchase of a new home.
Help to Buy Scheme
Under this proposal, the Federal government will support eligible first home buyers with a minimum 2% deposit with an equity contribution of up to 40% for new home and 30% for established homes. Home.
This scheme is expected to run for four years, beginning sometime this year.
All the above schemes have their own eligibility criteria and restrictions, with some having time limits. If you would like further information, please reach out as we are happy to assist.