Buying your first home is a big financial commitment. So of course, you want to make sure you use your hard-earned money wisely. Be savvy and take advantage of the current government grants and schemes available to first home buyers to help you get into the market and make your money go further.
There are three types of government support currently available to assist you with your purchase:
First Home Owner Grant
This is a lump sum payment of $10,000.00 when you buy or build your first home. You can build a house, townhouse, unit or buy off the plan. It also includes a home you want to substantially renovate. If purchasing a newly built home the purchase price must not exceed $600,000.00. If purchasing land to build the combined cost of the land and build must not exceed $750,000.00.
First Home Buyer Assistance Scheme
When purchasing land in New South Wales you will incur a government duty based on the value of the land called transfer duty or stamp duty. The First Home Buyer Assistance Scheme provides an exemption of this duty when purchasing your first home up to the value of $650,000.00. There is then a concessional rate between the value of $650,000.00 to $800,000.00. This exemption can save you a significant amount on the purchase of your home. For example, the duty payable on a home purchase of $500,000.00 is $17,590.00.
First Home Guarantee
Under this government incentive, you can obtain finance for the purchase of your home with a 5% deposit. A lender normally requires a 20% deposit on a purchase of land. If you do not have this amount, you will incur Lenders Mortgage Insurance. This will mean an additional $5,000-$10,000.00 payable to the bank to borrow money for your purchase. Under the First Home Guarantee, you can secure a loan with only a 5% deposit and avoid paying the Lenders Mortgage Insurance.
Unlike the First Home Owner Grant and the First Home buyer Assistance Scheme there are a limited number of places available under the First Home Guarantee scheme each year.
Eligibility criteria apply to each of the above incentives. Some criteria include:
• Must be over 18 years of age
• Be an Australian citizen
• Have not previously owned or had an interest in land in Australia
It is important that you check the eligibility criteria as they vary between the different incentives.
Your conveyancer – as a property law specialist – can answer any questions you may have and confirm whether you are eligible for any of these government initiatives prior to committing to a purchase.
Complete Conveyancing New England
Maximum Support, Minimum Fuss.
(02) 6771 3686