Buying your first home will likely be the biggest financial commitment you'll make in a lifetime, so it pays to be aware of any help that can take the edge off. But knowing what government support is available and applicable to you can be tricky to navigate. This article makes it a bit easier for you by summarizing all the current grants, schemes and concessions available to first home buyers.
First Home Loan Deposit Scheme (FHLDS)
The First Home Loan Deposit Scheme (FHLDS) is an Australian Government initiative to help you buy or build your first home sooner. We're proud to continue supporting this initiative.
If you’re eligible you’ll get a limited guarantee from the Australian Government to buy or build your first home with a low deposit of 5%, without paying Lenders Mortgage Insurance (LMI). There are 10,000 FHLDS places available from July 2021 for the 2021-22 financial year.
How to apply:
Check your eligibility (shown below)
Get in touch with myself to go through your current situation
Get conditional approval
Buy your first home: you’ll have 90 days to purchase your first home after you’re approved in the Scheme, then all you need to do is settle and move in.
Eligibility criteria includes:
All applicants must be First Home Buyers and must not have owned or had an interest in residential property (whether as an investment or owner occupied).
Individual applicants must have earned less than $125,000 or $200,000 for couples in the last financial year (as evidenced on your ATO Notice of Assessment).
Couples must be married or in a de facto relationship. Other persons buying together, including friends, siblings or a parent/child are not eligible.
All applicants must be at least 18 years of age and have a valid Medicare card.
All applicants must be Australian citizens with either a valid Australian passport or proof of Australian citizenship. Permanent residents are not eligible.
Applicants must have a deposit of between 5% and 20% of the property’s value.
Your purchased property must be an acceptable property type and within the property price threshold for the suburb and postcode.
Property Price Thresholds
For more information on the First Home Loan Deposit Scheme, read the 2021/22 Fact Sheet.
First Home Owner Grant (FHOG)
The FHOG is a national scheme, but it’s funded by the states and territories which has resulted in each state or territory tweaking its own FHOG rules pretty much every year. This article will focus on Queensland’s processes.
To be eligible for the FHOG QLD, you need to buy a brand new home or build a home from scratch. The value of your first home including the land, must be below $750,000.
There are a few rules to be eligible for the First Home Owner Grant in QLD, these conditions are:
You need to be a natural person (not a company or trust) aged 18 years or older.
You must be an Australian citizen or permanent resident (or applying with someone who is).
You need to be a permanent resident or Australian citizen.
You or your spouse must not have previously received a First Home Owner Grant in Australia.
You must not have previously owned property in Australia that you lived in.
You may still be eligible for the First Home Owner Grant in Queensland if you have owned an investment property as long as you haven’t lived in it.
In addition, you’ll need to live in your first home for at least six months within a year of becoming the owner.
First Home Super Saver Scheme
The First Home Super Saver (FHSS) scheme enables you to use voluntary contributions from your superannuation to put towards your deposit, helping you to buy your first home sooner.
To be eligible to withdraw from your superannuation under the FHSS scheme, you must:
not have owned property in Australia before
be aged 18 years or older; and
have not previously had an amount released from superannuation under this scheme.
Only voluntary contributions can be accessed as part of the FHSS scheme.
Certain types of contributions are not eligible to be withdrawn under the FHSS scheme, including:
compulsory employer contributions (e.g.: Superannuation Guarantee)
spouse or child contributions
Government co-contribution
Contributions made by another individual or entity on your behalf (except where your employer makes additional contributions for you under an agreed salary sacrifice arrangement), and
voluntary contributions to defined benefit funds or constitutionally protected funds.
The maximum amounts you’re able to contribute (within the ordinary caps) and withdraw as part of the FHSS scheme are:
$15,000 per financial year, and
$30,000 in total.
For more information, please visit the ATO website’s information on First Home Super Saver Scheme.
The Family Home Guarantee Scheme
The Family Home Guarantee is an Australian Government scheme that helps single parents buy a family home.
From 1 July 2021, 10,000 Family Home Guarantees will be available to eligible single parents with dependents.
You can use the Family Home Guarantee to build a new home or buy an existing home with a deposit of as little as 2%. Both first home buyers and previous home owners can apply. You can’t use the Family Home Guarantee to buy an investment property.
To be eligible you must:
be an Australian citizen, aged 18 years or over. Permanent residents aren’t eligible.
be a single parent with at least one dependent living with you
have earned $125,000 or less last financial year
Property Requirements
You cannot currently own a home, but you can have owned a home before.
You have at least a 2% deposit to contribute towards your property purchase.
The single parent must be the only name listed on the loan and the certificate of title.
Navigating these different schemes without the assistance of a broking professional can be stressful. To avoid this stress please reach please contact myself on 0401 225 713 or lmckean@lbkprivatelending.com.au.