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Independent Mortgage

Australian First-Time Buyer Schemes

Australian First-Time Buyer Schemes

If you are a first time home buyer and are new to the property market, you might have heard there are various incentives on offer. It is one thing hearing about them, but what are they and how do you apply?

First Home Loan Deposit Scheme

This scheme allows first-time buyers to purchase a home with a minimum 5% deposit. The Government covers the cost of the Lenders Mortgage Insurance (LMI), saving you thousands. There are only 10,000 places available on the scheme, and it is only open to Australian Citizens. To secure your spot, you must apply through a registered bank, although you can still use a mortgage broker to find you the best bank.

First Home Super Saver Scheme

This scheme will help you save up your home deposit faster. You can make voluntary contributions to your superannuation to use as a home deposit. You can only save a maximum of $15k per year to a total amount of $30k. Using your superannuation should build a deposit quicker because the money is locked away until you withdraw it and you are paying less tax on your voluntary contributions. The scheme does have tax implications when you remove the money, and not all super funds are eligible. Check the ATO website for details.

First Home Owner Grant

The First Home Owner Grant (FHOG) is the scheme every first -time buyer should use. The eligibility conditions and the benefits on offer vary State by State, but generally, you receive a lump-sum payment and relief on your stamp duty. Check your State or Territory Government website for details.

Don’t Miss Out

The easiest way to make sure you claim all of your first-time buyer entitlements is to use a mortgage broker. Not only will they make sure you don’t miss out on any first time buyers schemes, but they will also get the best deal on your mortgage. Brokers have access to the most up-to-date mortgage information, which means you won’t spend a cent more than you need to.

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