Are you getting confused with all the different first home buyer assistance schemes out there? We have put together a list for you to make it easier:
New! Australian First Home Loan Deposit Scheme
From 1 January 2020, eligible Australian first home buyers with a 5% deposit can get home loans without lenders mortgage insurance (LMI) through a brand new government scheme.
- If you’ve saved 5% of the purchase price of your property the government will guarantee the remaining 15% of the deposit.
- You still need to borrow 95%, but you can avoid LMI.
- Your mortgage needs to be an owner-occupied loan with principal-and-interest repayments.
- Eligible first home buyers can’t be earning more than $125,000 a year ($200,000 combined for couples).
- Access to the scheme is limited to 10,000 borrowers.
- The value of eligible homes under the scheme varies by state and city/region (see below).
- The scheme starts on 1 January 2020.
This scheme will make low deposit home loans cheaper. The scheme will be administered through the National Housing Finance and Investment Corporation (NHFIC) in partnership with lenders. In an announcement, the government said it would prioritise “smaller lenders to boost competition”.
We can expect more details about the scheme to be announced before it launches.
You will need to be a first home buyer earning $125,000 ($200,000 for a couple) a year or less.
The scheme is limited to 10,000 borrowers.
Property value caps
To be eligible for the scheme you must be purchasing a property valued at various thresholds for different locations across Australia. For Brisbane, the threshold is $475,000 or $400,000 for regional areas of Queensland.
Items relating to this scheme are still being finalised through parliament. This scheme will not come into effect until 1 January 2020.
Australian First Home Super Saver Scheme
From 1 July 2018 first home buyers can withdraw a portion of their extra super contributions and use them a deposit for a property. An individual can withdraw a maximum of $30,000 using the scheme.
This benefits buyers because:
- You might earn a higher return on the deposit money as the return on a super account is higher than a regular savings account.
- You can salary sacrifice these contributions into your super account so they come from your pre-tax income. This means you’ll avoid being taxed for making deposits.
- The money in the account will be taxed at 15%, meaning most Australians using the scheme will pay much less tax on their contributions.
- When it’s time to withdraw funds, you’ll be taxed at a marginal rate less a 30% offset.
For more information visit:
Queensland First Home Owners Grant
The Queensland First Home Owners’ Grant offers $15,000 to first-time owners buying or building your new house, unit or townhouse. The grant is available for properties valued at less than $750,000.
The grant is paid per new home and not to each of the applicants for the same home.
You can buy off the plan or choose to build yourself.
To be eligible for the grant:
- You must be at least 18 years of age.
- You must be an Australian citizen or permanent resident (or applying with someone who is).
- You or your spouse must not have previously owned property in Australia that you lived in.
- You must be buying or building a brand new home.
- The value of the home including the land is less than $750,000.
- You must move into the new home as your principal place of residence within 1 year of the completed transaction and live there continuously for 6 months.
For more information visit:
Queensland First Home Concession on Stamp Duty
You can claim a first home concession for transfer duty (stamp duty) when acquiring your first residence if you meet certain requirements.
The first home concession only applies to a home valued under $550,000 and can save you up to $15,925. The home concession may still apply for a home valued over $550,000.
To be eligible for a first home concession when you buy or acquire a home, you must:
- have never claimed the first home vacant land concession
- have never held an interest in a residence anywhere in Australia or overseas
- be at least 18 years of age (we explain below when we may waive this requirement)
- move into it with your personal belongings and live there on a daily basis within 1 year of settlement
- not dispose (sell, transfer, lease or otherwise grant exclusive possession) of all or part of the property before you move in
- be paying market value if the residence is valued between $500,001 and $549,999.
To keep the benefit of the first home concession in full after you move in, you must not dispose of all or part of the property within 1 year. A partial concession may apply if you dispose within 1 year.
For more information visit
Brisbane City Council First Home Owner Remission Scheme
Brisbane City Council is making it easier to buy your first home by providing a one-year 50 per cent rates discount for first home owners.
The 50 per cent rates remission of up to $1,000 over a 12-month period for eligible first home owners will commence for title transfers from 1 October and will be available on homes with a value less than $750,000.