Recently we have seen a number of initiatives from our Prime Minister to boost the economy.

There seems to be a lot of confusion around these matters so i decided to list them out for you.

Following incentives and initiatives have been announced for the first home buyers:

  • First home loan deposit scheme
  • Home builder scheme in response to Covid-19
  • First home buyer grant
  • First home buyer assistance scheme
  • First home super saver scheme

Request a call to discuss which benefit suits you best

    Lets expand on these:

    First home loan deposit scheme:

    This scheme is to assist singles and couples who have less than 5% deposit for their first home.
    The government provides guarantee of the remaining 15% which will help the first home buyers to avoid the hefty Lenders mortgage insurance premiums.
    This scheme has a limit of 10,000 applications. The applications open 1st of July 2020 so better hurry

    Home Builder scheme in response to Covid-19:

    This scheme is for the existing homeowners looking to renovate and the first home buyers looking to build their first home. This is in conjunction with Commonwealth governments and state governments.

    • You must sign a contract to renovate your house or build a new house between 04/06 and 31/12/20 to get $25k from the government.
    • This is for people over 18, Australian citizens, earning below $125K for singles and $200k for couples.
    • Applicants must provide 2018-19 ITR’s.
    • The property value of new home must not exceed $750k.
    • One must be looking at substantial renovation of existing home over $150k. The value of the existing property should not exceed 1.5 million.
    • Owner builder renovations are not permitted. Only via registered builders.

    First home buyer Grant:

    This is not really new but its still $10,000!!

    Available to First Home buyers buying a new or established home under $600K. Or you can build a new home under $750K with land not being more than $350K.
    You must move into the property within 12 months of purchase/build and must live in the property for a continuous period of 6 months.

    First home buyer Assistance scheme:

    Stamp Duty waiver for First Home buyers looking at buying a new or existing home under $650K. Concessional duty applies if the property is between $650K-$800K.
    Shared equity arrangement with non-spouse buyer is eligible too.
    You must move into the property within 12 months of purchase/build and must live in the property for a continuous period of 6 months.

    First home Super saver scheme:

    This scheme was lodged in 2017-18 federal budget. From 01/07/17, first home buyers are eligible to make voluntary  contributions(concessional and non-concessional) in the superfund. From 01/07/18, one can apply to withdraw these to release the contributions with the associated earnings.

    One can have maximum of $15k in one financial year withdrawn, and no more than 30k across all contributions. 100% of non-concessional and 85% of concessional contributions can be withdrawn.

    Too much information? I agree but we are here to help you through this journey. So call us or request a call using the button below.

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