It can be an exciting time as you get ready to be a first time property buyer and start your search in finding a space to call your own. The journey to get on the property market can be competitive and confusing with challenges brought on by the pandemic, rising property prices and tougher lending conditions.
Fortunately, the Australian government offers a variety of first home buyer incentives and real estate grants to assist you in purchasing your ideal property.
As your Sydney property experts, let us keep you up to date with everything you need to know as a first home buyer.
What are the first home buyer incentives you need to know?
From January to October last year, new loans from first home buyers had been on a decline. Records from the Australia Bureau of Statistics show that the share in finance allocated to first-home buyers fell 16% in the year to October 2021.
With household incomes increasing slowly in comparison to the value of housing, it has been understandably difficult for people to enter the property market.
However, in November 2021, the number of new loan commitments rose by 1.9% – a good indication that first home buyers are starting to progress towards their property goals again.
We know you want to get your hands on the keys to your dream home. So, here are some available first home buyer incentives that can assist you financially.
- The First Home Loan Deposit Scheme
This is an initiative by the National Housing Finance and Investment Corporation (NHFIC) to support low and middle-income earners buy their first homes.
The First Home Loan Deposit Scheme allows first home buyers like you the opportunity to buy a residential property with just a 5% deposit. It also enables the Federal government to serve as your guarantor for up to 15% of your home loan, so you can avoid paying the Lenders Mortgage Insurance (LMI).
For more information, see our article on The First Home Loan Deposit Scheme.
2. First Home Super Saver Scheme
As part of the 2021-2022 Federal budget, the Australian government has increased the maximum releasable amount of First Home Super Saver Scheme (FHSSS) to $50,000 from the current $30,000 limit.
Technical amendments were also made to ensure that more first home buyers will be able to enter the property market.
3. Family Home Guarantee
This new scheme is quite similar to First Home Loan Deposit Scheme, but focuses more on single parents with dependents.
It aims to guarantee the loans of first home buyers who are single parents by helping them build or buy a house with just a 2% deposit.
4. Australia’s First Home Owner Grants
Australian states and territories offer First Home Owner Grants (FHOGs) to help first home buyers purchase their dream property.
The size of the grant and the eligibility criteria differs by location. There are also several Australian states and territories that offer other types of concessions (reduced rates) or exemptions on stamp duty to help minimise your costs.
How can you qualify and apply for first home buyer incentives?
As a first home buyer, you don’t want to miss out on these helpful government incentives. The right scheme can potentially open the doors to a dream property for you and your family.
Just make sure to keep the following factors in mind, so you’ll know if you are eligible for a specific scheme or grant.
What do you need to access the First Home Loan Deposit Scheme?
Applications for the First Home Loan Deposit Scheme are done through a lender. Some of the requirements set by the NFIC include income limits, prior property ownership test, minimum age, a deposit requirement and an owner-occupier requirement.
For complete details, you can read more in this fact sheet.
What do you need to access the First Home Super Saver Scheme?
To be eligible for the First Home Super Saver Scheme, you must be at least 18 years old. You also can’t have previously made an FHSS release request under the FHSS scheme and never owned a property in Australia.
What do you need to access the Family Home Guarantee?
Applicants for the Family Home Guarantee should take note of the following requirements:
- must be Australian citizens and at least 18 years old
- must have a deposit that’s between 2% and 20% of the property value
- must intend to be owner-occupiers
- repayments must be for the principal and interest of the loan for the full period of the loan agreement
- the loan term can’t be longer than 30 years
What do you need to access Australia’s First Home Owner Grants?
To obtain more information for the First Home Owner Grant in your specific state or territory, check out firsthome.gov.au.
How can Upstate help you?
If you’re a first home buyer looking in Sydney, we’re here to support you.
After all – there’s no place like home! By applying for the right first home owner schemes for you, it will be easier to make your dream property a reality.
As your local Sydney property experts, you can rely on us to be skilled, agile, client-focused and tech-savvy as we help you find the perfect home. We also have a team of financial specialists who can help assess your personal situation to find the best financial solution for you.
The Upstate Team
