Government Assistance
Buying your first home is both exciting and daunting. You may be getting married or simply beginning your own journey out of the family home.
A deposit for your first loan can be the biggest hurdle to overcome for first home buyers. You may be young and you don’t have a high income. Property prices seem to continually rise each year, making this seem an impossible feat.
The Federal Government currently provides assistance to 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 useful 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.
Applicants need to have 5% in genuine savings to go towards the purchase. That means for a $500,000 home you’ll have to have $25,000 saved up before you can apply. Family guarantees still enable you to enter into a loan arrangement with no deposit needs.
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 is must not be 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 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
From 1 January 2016, the NSW government will offer a grant of $10,000 to any first home buyer for properties valued up to $600,000.
For a property where you enter into a contract to build or are an owner builder the cap is $750,000.
In addition, from 1 July 2017, if you build or purchase a new home valued under $650,000, you won’t be charged stamp duty.
You will need to move into the property within the first year and live in it for at least 6 months.
Queensland
From 1 July 2018, the Victorian Government will offer a grant of $15,000 per applicant to any first home buyer for properties valued up to $600,000.
In addition, eligible first home buyers purchasing a new home valued at less than $750,000 will pay no transfer duty (previously known as stamp duty).
You will need to move into your first home within the first year and live in it for at least 6 months.
Victoria
From 1 July, 2017, eligible first home buyers could receive a $10,000 lump sum in addition a discount on stamp duty.
If the value of the new home is less than $600,000 you’ll not only receive that lump sum payment but the stamp duty will be waived too.
Victoria also has a Rural Offer. From July 2017, the Victorian Government will offer $20,000 to any first home buyer building a brand new home in regional Victoria valued up to $750,000.
To discuss your eligibility for government assistance in purchasing your first home, please contact us to talk to a lending specialist.
