Buying your first home

 The professionals at Intro Finance are highly experienced in assisting people wanting to get into the property market for the first time. As a first home buyer in Australia you may be eligible for certain Government incentives setup specifically to assist you getting into your dream home faster, these include access to the First Home Owner Grant, the First Home Buyer Guarantee Scheme and the First Home Super Saver Scheme (FHSSS).

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), a federal government initiative to support eligible first home buyers purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the federal government. Under the FHBG, part of an eligible first home buyer’s home loan from a participating lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance. 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). This guarantee is not a cash payment or a deposit for a home loan.

In NSW, first home buyers have a few months left to make use of an extra $66,000 in their budgets as the new Labor government plans to end the previous government’s stamp duty reform.  Under the current policy, introduced on January 16, 2023, first home buyers can opt to pay an annual property tax on homes valued up to $1.5 million. They avoid paying upfront stamp duty of up to $66,000. That is set to change on July 1, 2023, when the new government aims to scrap the property tax option and commence its stamp duty exemption for first home buyers who purchase properties worth up to $850,000 and concessions for homes up to $1 million.

Across Australia, the First Home Buyers’ Grant provides a one-off lump sum payment. The grant is funded separately by each of the states and territories. How much you may receive and the conditions for eligibility will vary around the country. It is generally only available if you buy or build a new home. In some states and territories, you may also be eligible if you purchase a substantially renovated home. In NSW, the grant is worth $10,000.

First home buyers may also be eligible for the FHSSS, which allows you to make voluntary (before tax) contributions to your super fund that you can withdraw to use as a home deposit. At present, you can make contributions of up to $15,000 per financial year, subject to your normal super contribution caps.