Home Property & Investment Help To Buy Your First Home Scheme

Help To Buy Your First Home Scheme

Help To Buy Your First Home Scheme | First home buyers depending on parents to get into housing market | Herald Sun

Housing affordability was one of the key battlegrounds of the federal election last month. So, the new Labor Government is proposing to assist first home buyers break into the property market by introducing what is effectively a shared equity scheme.

Eligible first home buyers would need to have saved a minimum deposit of 2%, and the scheme would be limited to individuals earning less than $90,000 or couples earning $120,000. Under the scheme, which would be capped at 10,000 spots each year, the government would own the relevant percentage of the dwelling which you have the option to buy back in 5% reductions over time.

Who Is Eligible For The Help To Buy Scheme?

Criteria Eligibility Requirements
Income Individual gross income must not exceed $90,000 a year

Gross income for couples applying together must not exceed $120,000 a year

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If income exceeds the maximum allowed for two consecutive years, participants will have to repay the government’s financial contribution in part or whole, as their circumstances permit.

Property ownership and residency Must be a first-home buyer with no land or property under your name in Australia or overseas

Property purchased through the scheme must be participants’ primary residence

Age and citizenship Must be at least 18 years old

Must be an Australian citizen

Permanent residents aren’t eligible

Deposit and other expenses Minimum deposit 2%

Participants must pay legal costs, conveyancing fees, stamp duty, and any related taxes or expenses

Type of housing Participants can purchase a new or existing home that is one of the following types:Stand-alone house

Semi-detached house

Duplex

Townhouse

Unit

Other requirements Must pass the serviceability test of the lender and qualify for a home loan

 

First Home Super Saver Scheme: What you need to know

How Much Will I Save?

The savings on a property through the scheme will depend on the property’s price. Based on the price cap for different locations, a 40% equity contribution from the government for purchasing a new house can save you anywhere from $120,000 to $380,000. A 30% equity contribution from the government to purchase an established home can save anywhere from $120,000 to $285,000.

The chart below shows price caps for properties in different locations and the maximum the government would pay under the scheme, based on the property type.

Budget expands deposit scheme for first home buyers: a second-best option, with risks down the road | UNSW Newsroom

Even if you don’t qualify for the scheme, there are other programs for you to choose from, including the following:

With limited places available, competition for a spot in this scheme is sure to be fierce. Don’t delay! Discuss your situation with our mortgage brokers today, and we’ll find the best home loan scheme for your situation.

 

Wealthy & Wise

Article Supplied by Scott Heathwood of https://www.wealthyandwise.com.au
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