There are many schemes currently available in NSW to help First Home Buyers get into the property market. Your Mortgage Broker can help you understand your eligibility and how to maximise the benefits.
First Home Buyers Assistance Scheme
To be eligible for this scheme, you must never have owned, or had interest in, residential property in Australia. You must be purchasing it with the intent to live in it for at least 12 months, commencing within the first 12 months after settlement. There is an exception for members of the ADF who do not have to meet the requirements for living in the property so long as all purchasers are on the NSW electoral role when contracts are exchanged.
If you’re purchasing an established property, you will pay no stamp duty for purchases up to $800,000. For purchases between $800,00 – $1,000,000 you will receive a discount. For purchases over $1,000,000 you pay the normal rate.
If you’re purchasing vacant land, you will pay no stamp duty for purchases up to $350,000. For purchases between $350,00 – $450,000 you will receive a discount. For purchases over $450,000 you pay the normal rate.
Here is the link to the official First Home Buyer Assistance Scheme website.
First Home Owners Grant
This scheme provides a $10,000 one-off payment for eligible first home buyers who purchase a new or substantially renovated home, or build a new home.
The FHOG can be used as part of your contribution of funds, as long as the FHOG application is submitted to the lender with your loan application. The FHOG is then paid directly to the lender after the construction has begun.
Here is the link to the official First Home Owners Grant website.
Home Guarantee Scheme
The Home Guarantee Scheme (HGS) is the umbrella scheme for the Regional First Home Buyers Guarantee, the First Home Guarantee and the Family Home Guarantee. Each of these schemes has different eligibility criteria but the premise is the same, the government will provide a guarantee for a portion of the equity and you won’t need to pay Lenders Mortgage Insurance (LMI). Only certain lenders are participating in this scheme, and a limited number of scheme places are released each financial year.
Regional First Home Buyers Guarantee is for people who are buying a home in the regional area they have resided in for the previous 12 months. If you meet the criteria for income caps and purchase price caps, you need a minimum 5% deposit and will pay no LMI. People who have not owned a home for more than 10 years can also be eligible for this scheme.
First Home Guarantee is for people who meet all the criteria except for the regional area criteria.
Family Home Guarantee is a little different in that you only need a 2% deposit instead of 5%, although you must be a single parent caring for a dependent child. You do not need to be a first home buyer, but you cannot own another property.
Here is the link to the official Home Guarantee Scheme website.
First Home Super Saver Scheme (FHSSS)
It can be difficult to save for your deposit, and the FHSSS was designed to give first home buyers a better chance. Under this scheme, you can make additional contributions to your superannuation fund to be later withdrawn as part of your savings contribution. You can deposit up to $15,000 per year, and can apply to withdraw up to $50,000 once it has been accumulated.
It is important to understand that only voluntary additional payments to your superannuation count towards the FHSSS, this does not include mandatory contributions from your employer. You cannot withdraw from your superannuation for your deposit unless you meet these requirements.
Here is the link to the official First Home Super Saver website.
This information was current as of 22nd February 2024.
