First Home Super Saver Scheme (FHSSS)

FIRST HOME SUPER SAVER SCHEME

What is FHSSS?

A government initiative to help borrowers save for their first home.  It allows the borrower to save $15K a year for 2 years "tax free" in a super account.  There are pro's and con's as we'll soon see.  Mortgage Broker Revesby can work it out for you.

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Using Superannuation as a Deposit?

        1. Well you could look at it like that.  It sits in a separate account to your superannuation.

        2. Can only be released for the purchase of your home.

        3. Requires genuine savings; some exemptions apply.

What are Genuine Savings?

         ✅Savings held or accumulated over the course of 3 months.

        ✅Term deposit held for three months.

        ✅Shares held for three months.

        ✅Some lenders allow you to use your rental history.

        ✅Salary sacrificing each pay is considered genuine savings.

        ✅Lump sum deposits are considered genuine if held for 3 months.

        ✅Must be left in First Home Super Saver Scheme for at least 3 months.

Am I eligible?

        ✅Must be >18 years old.

        ✅Never owned a property or land.

        ✅Never used the First Home Super Saver Scheme before.

        ✅Contact the Australian Tax Office to get you started.

        ✅You must live in property for 6 of the first 12 month after purchase.

  

Is it worth it?

        ✅Contribute $25,000 a year for 2 years; makes a maximum deposit of $50,000.

        ✅Sydney homes are averaging over $1,000,000.  Deposit is at least $50K.

        ✅But these are before tax payments, which lowers your tax bill.

        ✅You are missing out on the 10%+ investment returns of superannuation funds.

        ✅Potentially a less exciting initiative.  Seek proper advice.

I drew my deposit, it's been 12 months, & I haven't found a property?

        ✅You can apply for a 12 month extension after drawing your funds.

        ✅Still can't find a home?  You can apply for another 12 months.

        ✅Still no luck?  You should re-contribute the funds back to super.

 

How can I use this money for a deposit?

           ✅Fill out a determination letter from your online mygov account.

          ✅Detail the eligible concessional contributions.

          ✅The lender may use this as proof of genuine savings.

          ✅Request your letter, and then contact Mortgage Broker Revesby for guidance.

          ✅The ATO might ask you for a copy of the signed Contract of Sale & Proof of                             Occupancy certificate.

I'm here to help.
No fee service.

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Matthew Stack

Mortgage Broker Revesby

matthew@mortgagebrokerrevesby.com.au

www.mortgagebrokerrevesby.com.au

0423 237 242