Government Grants
The luckiest people currently are those wanting to buy their first home!
Never before has there been so much Government support with packages to realise new home ownership sooner.
These packages mean there is a legitimate lifetime opportunity to secure bonuses, start with lower than normal deposits and pay the lowest interest rates we have seen in decades.
PLUS builders and land developers are offering highly competitive packages with extra bonuses that compound the Government incentives even further.
On the table are varying packages that suit every person differently. That’s why it’s so important to understand the ins and outs around your options and work with professionals that know the options best. Below are examples of the differing opportunities to review.
Victorian Government Support
Not sure about $10,000 First Home Owner Grant?
This is available to eligible applicants buying or building a new home valued at up to $750,000 in metropolitan Melbourne.
A $10,000 First Home Owner Grant is available to applicants buying or building a new home in regional Victoria valued up to $750,000.
Not sure about stamp duty concession?
First home buyers purchasing a new or established home valued below $600,000 will be exempt from stamp duty, while buyers purchasing a new or established home valued between $601,000 and $750,000 will be eligible for a stamp duty concession, applied on a sliding scale.
On a $600,000 new build house and land package, this saving is approximately $9,000.
Federal Government Support
First Home Loan Deposit Scheme
This program supports eligible first home buyers purchase their first home sooner.
Usually first home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a home of their own with a deposit as little as 5% (lenders criteria also apply).
This is because the Government guarantees to a participating lender, up to 15 percent of the value of the property purchased.
This initiative can save first home buyers up to $25,000. In the Oct 4, 2020 budget, an extra 10,000 places have been reserved for first home buyers and the price caps were also raised from $600k to $850k in Melbourne.
https://www.nhfic.gov.au/support-buy-home/property-price-caps
First Home Super Saver Scheme
Easy calculator worksheet
What could this mean for you?
Let’s take a look at an example of what it means for a first home buyer looking to buy a $600,000 home and land package.
First Home Loan Deposit
Scheme- 15% of deposit is guaranteed by NHFIC
- $20,000 Loan Mortgage Insurance saving
- This makes it easier to start as the fees required are a lot less
First Home Owners
Grant- Home valued under $750K
- Not regional
- You get this and don’t have to pay it back
Stamp Duty
concession- On land only
- This is a saving- not required to pay back
First home super saver
Scheme- Up to $15,000 if you have made additional contributions to this value
- This is smart saving as tax payable is lower
Do you fit the criteria?
For all schemes and bonuses, you need to be a natural person (not a company or trust).
You need to be aged 18 years or older and an Australian citizen. Exclusions apply for permanent residents with the State Government grant. You will be eligible providing they are a first home buyer.
Then each program includes other criteria including income levels, home values, construction timeframes, previous home ownership and more. We can explain all these to you.
The State packages in Victoria are also specific to the State. There are differences in other States.
It’s critically important that you understand the Government programs available.
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