What government grants are available for first time home buyers?

There are three FEDERAL government schemes for first home buyers:

1. The First Home Loan Deposit Scheme 

2. The First Home Super Saver Scheme

3. The Home Builder Grant

✅Exempted or reduced stamp duty - varies state to state.  

✅First Home Owners Grant - varies state to state.

1. The First Home Loan Deposit Scheme

✅All loans with a deposit less than 20% attract Lenders Mortgage Insurance or LMI.

✅The government is willing to act as your mortgage insurer to help first home buyers with a smaller deposit.  This means you will save tens of thousands in LMI.

✅The scheme is limited to 10,000 places per financial year or unless otherwise stated by the government.  They are released on the 1st of July each year and there is generally a lot of demand for these slots.

✅There are now an extra 10,000 slots for this financial year for New Home Sales (on top of the 10,000 slots for the purchase of an existing dwelling).

✅Mortgage Broker Revesby can guide you through this process as the 1st of July rolls back around.  Be sure to get your tax returns done early and come armed with your notice of assessment for the previous financial year.

2. First Home Super Save Scheme

✅This allows first home buyers to save their deposit over time within their super fund.

✅Pre-tax income is used, helping you save quicker.

✅Up to $15,000 per year over 2 years for a total of $30,000.  This isn't much of a deposit, however, it is pre-tax savings and should be considered as part of your plan to getting on the property ladder.

✅Make sure your super fund will allow the release of your deposit under the agreement.

3. New Home Builder Grant

✅This is for first home buyers building a new home.

✅The grant is $15,000 for owner occupiers.

✅Most lenders are not accepting this grant as part of your funds to complete, however, there are still a few that will issue a pre-approval utilising these funds.  Speak to Mortgage Broker Revesby to learn how.

✅You must enter into a building contract before 31st March 2021 as of the last government communication. 

But isn't the New Home Builders Grant $25,000?

✅We are in an extension period for the grant.  It is now $15,000 between the 1st January 2021 & 31st March 2021.

Do I have to pick one grant or can I apply for them all?

✅If you're eligible for all three, then Mortgage Broker Revesby will show you how.  It's definitely is challenging to get all three aligned within a single time frame.

What about stamp duty?

✅This is a state initiative and varies depending on where you purchase.

✅NSW first home buyer exemptions up to a purchase price of $650,000.

✅NSW discounts or concessions for property purchases $650,000 - $850,000.

✅Your solicitor will handle your stamp duty exemption on settlement day.

✅Ask Mortgage Broker Revesby to calculate it for you.  We'll help you understand all your purchase costs in one conversation.

But Isn't there a First Home Owners Grant?

✅The FHOG is a state ran initiative, so it varies depending on where you're buying.

✅This is for new and existing properties.

✅Each applicant must be a natural person, not a business, company or trust account.

✅18 years or older.

✅At least one applicant must be a Permanent Resident.

✅All applicants & de facto's must never have owned a property or lived in the property longer than 6 months continuously after 1 July 2000.

✅All applicants and de factos can't have owned a property in Australia before 1 July 2000 whether they lived in it or not.

✅Each state will have a cap or limit amount.  For NSW: the property must be <$600,000.   For new home builds it must be less than $750,000.

Which grants can I apply for?

✅Mortgage Broker Revesby or your lender will help you find the grants you're eligible for.

✅Apply for the grants alongside your home loan.  

✅Some lenders will apply for these grants once your formal approval is granted.

✅Your solicitor will handle the stamp duty waiver on settlement day.

Let us help you.  We will:

✅Apply for all the grants you're entitled to.

✅Guide you through the whole process.

✅Organise your home loan with a competitive interest rate and features.

✅Introduce you to the best local real estate agents.  And help them to understand your position and what you are looking for.  We will introduce you to a few local agents.

✅Free property reports and suburb reports to assist you in making the right decision.

✅Manage the mortgage for the life of the loan.  A free assessment every 2 years for the best interest rate at the time.  We'll show you how to pay it off quicker.

No fee service.

Matthew Stack

matthew@mortgagebrokerrevesby.com.au

www.mortgagebrokerrevesby.com.au

0423 237 242

#firsthomebuyer #firsthomebuyergrant #stampduty #mortgagebrokerrevesby #mortgagebrokersydney #homeloan #stampdutyexemption #newbuildergrant #FHOG #thehomebuilderscheme #FHSSS #firsthomesupersaverscheme