First Home Buyers

Embarking on the journey of buying your first home is a thrilling and empowering experience, whether you’re starting a new chapter in your life or simply moving out of the family home.

For first-home buyers, the deposit for their first loan can often be the biggest obstacle to overcome. This can be especially challenging for those who are young and don’t have a high income. Furthermore, property prices tend to rise continuously each year, making it seem like an impossible task to purchase a home.

The State Government currently assists first-home buyers seeking to purchase their first home. The government can assist with saving for your first home deposit and also provides savings on the stamp duty payable on the purchase of the house.  

 

First Home Owners Grant

The First Home Owner Grant is available for first-home buyers and is also beneficial for new constructions and house and land packages.

Seeking government assistance can be difficult to navigate, so it is important to speak with somebody who understands what assistance you may be eligible for.

If you are working towards buying your first home, speak to an Oracle Lending Specialist today to see how the government could help you purchase your first home. 

 

Save on stamp duty

For first-home buyers, stamp duty can be the forgotten cost of purchasing a house. The cost of Stamp Duty is usually a significant amount that must be not forgotten by the purchasers.

You may be eligible to reduce or eliminate the cost of paying stamp duty on the purchase. For example, a $500,000 home purchase will normally attract a stamp duty of approximately $20,000.

The government assistance available to first-home buyers varies by state.

Below is a summary of the First Home Owners Grant and Stamp Duty relief available in NSW, Queensland and Victoria. 

 

New South Wales

First Home Owner (New Homes) Grant

At present, The NSW government offers a $10,000 First Home Owner Grant when you buy or build your first new home.

Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.

If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000.

If you purchase vacant land and sign a building contract with a builder, then we add the value of the vacant land plus the value of the comprehensive home building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.

First Home Buyers Assistance Scheme

In addition, from 1 July 2023, a full exemption from transfer duty will be available if you are buying a new or existing home valued up to $800,000, while homes valued over $800,000 and less than $1,000,000 may qualify for a concessional rate.

There are a range of requirements that you must meet to be eligible, our Lending team can assist you with the scheme.

 

Queensland

First Home Owner Grant

At present, the Queensland Government offers a First Home Owner Grant of $15,000 when you buy or build a home from scratch. The value of the home including land, must be below $750,000.

In addition, the Queensland government also offer a regional building boost grant that gives eligible applicant an extra $5,000 after the purchase or construction of a new house, unit or townhouse in regional Queensland.

 

Victoria

First Home Owner Grant

At present, the Victoria government offers a First Home Owner Grant for eligible first-home buyers who could receive a $10,000 lump sum in addition to a discount on stamp duty.

The new home must be valued at $750,000 or less and be a new home.

There are a range of requirements that you must meet to be eligible, our Lending team can assist you with the scheme. 

 

Stamp Duty exemptions and concessions

There are a range of exemptions, concessions or reductions from stamp duty available to eligible first-home buyers.

For instance, First-home buyer duty exemption or concession, First-home buyer reduction, Off-the-plan concession, Pensioner concession, Principal place of residence (PPR) concession, First-home owner with family exemption or concession and Young farmer’s exemption or concession. 

 

First Home Guarantee Scheme

The Australian government offers the First Home Guarantee (FHBG) as part of the Home Guarantee Scheme (HGS), this supports eligible home buyers to buy a home faster.

Underneath the First Home Guarantee, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This allows an eligible home buyer to buy a home with as little as a 5% deposit without paying the Lender’s Mortgage Insurance. 

For the First Home Guarantee, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). There are price caps on each location within Australia.

 

To discuss your eligibility for any of the government schemes mentioned above, don’t hesitate to reach out to one of our knowledgeable Oracle lending specialists.

 

Enquire today to see how Oracle can assist you!
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