What are the benefits available for First Home Buyers in Australia?

It is the dream of many young Australians- buying your first home, getting out of the rental race. It is getting more challenging, that’s for sure, with house prices constantly on the up, but there is some help available for first-home buyers. There are hoops to jump through, naturally, but we’ll show you what’s available and give you tips on how to navigate your way through.

What is the First Home Owners Grant (FHOG)?

The first homeowner’s grant was introduced way back in 2000 to offset GST applied to home ownership. It is a national scheme funded by the states. Each state and territory has their own legislation surrounding this scheme, so check by state for your eligibility.

Some elements for eligibility include an upper limit on the value of the home you’re about to purchase, if the home is a ‘new’ home or recently renovated, and so on.

Who is Eligible for the Grant?

There are a few rules and conditions you need to check off before you’re eligible for a first homeowners grant. They include:

Being a permanent resident or citizen of Australia.
Have not previously owned a home in Australia or received a FHOG.
You need to live in the house for at least six months
You must be an actual person, not a Trust or Company
You need to be over the age of 18.

What is the First Home Loan Deposit Scheme (FHLDS)?

This is a government-funded scheme to help first-home buyers get enough money for a deposit, without having to pay for Lender’s Mortgage Fees.

It is a loan, and will need to be repaid.

The property price threshold for eligibility is different per state, with NSW being $800 000 and the Northern Territory being $500 000. We will give you links below to your state’s criteria.

Who is Eligible for the Deposit Scheme?

The eligibility for this scheme is as follows:

You must be an Australian citizen or Permanent Resident over the age of 18.
A single applicant must have a taxable income of up to $125 000 pa, or couples with up to $200 000 pa.
Couples are only eligible if they are married or in a de facto relationship.
You must have at least 5% of your home loan deposit saved. If you have more than 20%, then you will not be eligible, as you would have covered the LMI.
Loans require regular payments.
You must be an owner-occupier of the home being purchased.
You must be a first home buyer, as per the conditions of the First Home buyers Scheme.

What is the First Home Super Saver Scheme (FHSS)?

This is a scheme where first home buyers can save money to purchase their first home, inside their super fund.

You make voluntary contributions to your super fund, and when you need them for purchasing your home, you can apply to release those funds, specifically for purchasing a home.

Who is Eligible for the Deposit Scheme?

There are conditions to be eligible for this, and there are things you can’t do for this scheme.

You must be 18 years of age or older.
You must never have owned a property in Australia. This includes vacant land or investment property.
The property you buy must be located within Australia.
You must not have requested a FHSS previously.
Only voluntary contributions are eligible for this scheme. Contributions made by your employer are exempt from this scheme.
You can apply for a maximum of $15 000 per financial year of your voluntary contributions released, up to a maximum of $50 000.

Engage the Professionals

The realestateview.com.au team are here to answer any queries you may have regarding first homeowners grants, or other ways you can save for your first home.

There are different benefits available, depending where you live;

Benefits for those living in Victoria

Benefits for those living in New South Wales

Benefits for those living in Queensland

Benefits for those living in South Australia

Benefits for those living in Western Australia

This article was written and originally appeared on realestateview.com.au