The 2021-22 Federal Budget is out and there are plenty of incentives for first homebuyers!
Family Home Guarantee
If you are a single parent, the Family Home Guarantee might be your answer to the challenge of home ownership. This new program gives eligible single parents the opportunity to purchase a home (new or existing) with a deposit of only 2%. Ten thousand places will be available over 4 financial years starting from 1 July 2021. Significantly, the Family Home Guarantee is available to parents regardless of whether they have owned a home previously.
New Home Guarantee (NHG)
Formerly known as the First Home Loan Deposit Scheme (FHLDS), the NHG has been renamed and extended, with an extra 10,000 places available for the coming financial year (the 2021–22 financial year). Under this scheme, eligible first home buyers can purchase a property with as little as a 5% deposit. The Australian Government guarantees the difference between the homeowner’s deposit and the required 20%, so the homeowner does not have to take out lenders mortgage insurance.
The scheme only applies to new homes and can include:
- newly-constructed dwellings
- off-the-plan dwellings
- house and land packages
- land and a separate contract to build a new home.
There are strict eligibility criteria and important timeframes, so do your research before you start property hunting!
First Home Super Saver Scheme (FHSS)
Under the FHSS, first home buyers can release voluntary super contributions to put towards a house deposit. The changes announced in the latest budget allow home buyers to release up to $50,000 of voluntary contributions from their Super, an increase of $20,000. The changes come into effect on July 1 2022. Employer contributions and spouse contributions cannot be accessed under the FHSS.
Other schemes for first home buyers
- First Home Buyers Assistance Scheme – As long as your home isn’t valued at more than $1 million, you can apply for a full or partial exemption on transfer duty.
- First Home Buyers Grant ( New home) – Apply for $10,000 towards the purchase price of a new home in addition to the First Home Buyers Assistance Scheme.
If you’re thinking about building a new home in Vincentia, talk to AK Buckley Building. We can also help with extensions, additions, garages, kitchens and granny flats.