The Federal Budget contained some good news for Australians looking to buy a home, especially first home buyers. Although property prices are currently rising in the highest market boom we’ve seen in over a decade, there is some financial help available.
A new Family Home Guarantee Scheme
The Family Home Guarantee is a new scheme offering help to eligible single parents with dependants. If you’re eligible, you’ll be able to build or buy a new home with a deposit of just two per cent.
You don’t have to be a first home buyer to be eligible. You can be a previous owner-occupier, but you must also have an annual taxable income less than $125,000.
10,000 Family Home Guarantee places will be made available from July 1, 2021. If you want to take advantage of it, you should talk to a mortgage broker and apply as soon as possible.
10,000 more places in the First Home Loan Deposit Scheme
Another key Federal Budget announcement for home buyers is the extension of the First Home Loan Deposit Scheme. 10,000 more places will be up for grabs over the next financial year. This scheme was first introduced on January 1, 2020 and has been very popular. It helps eligible first home buyers to buy a home with a 5% deposit without needing to pay for lenders’ mortgage insurance.
To be eligible, you must be buying your first residential property. You and your partner must also have an annual combined income less than $200,000. If you’re applying on your own, your yearly income must be less than $125,000. The value of your home must also be less than threshold limits. These limits vary based on your location and the type of home you’re buying. The threshold limits for New South Wales are listed below.
|Type of home||Location||Threshold limit|
|Existing||Sydney, Newcastle, lake Macquarie, Illawarra||$700,000|
|Existing||Other locations not listed above||$450,000|
|New||Sydney, Newcastle, lake Macquarie, Illawarra||$950,000|
|New||Other locations not listed above||$600,000|
Again, if you’d like to apply, you should talk to a mortgage broker as soon as possible.
A $20,000 enhancement to the First Home Super Saver Scheme
An enhancement to the First Home Super Saver Scheme was also announced in the Federal Budget. This is another incentive to help first home buyers. The scheme gives you the opportunity to save for your first home inside your super fund. It allows you to afford a deposit sooner.
Currently, you can access up to $30,000 of voluntary super contributions to use as a deposit on your first home. From July 1 2022, this maximum amount will be increased to $50,000. To take advantage of this scheme, start making voluntary super contributions as soon as you can.
How we can help
If you’d like to take advantage of these home buyer incentives, our experienced and licensed brokers at Wisebuy Investment Group can help you find the right loan for your needs. We can also help you with your application.
We service a diverse range of clients in Newcastle, Lake Macquarie, Port Stephens, the Hunter Valley and the Central Coast.
Contact us today for an obligation-free chat!