By Flemings Property Services & Highlands Funding.
Buying your first home is an exciting milestone, but it can also be overwhelming. With many home loan schemes available in Australia, it’s hard to know which ones are best suited to your needs as a first home buyer.
If you’re a first-time homebuyer in Australia, there are several government schemes that can help make buying your first home more affordable. We sat down with mortgage broker Paul Goldsmith from Highlands Funding to outline and explain the New South Wales, and Federal Government home loan schemes available to first home buyers as of April 2023.
New South Wales (NSW) Schemes:
First Home Buyers Assistance Scheme (FHBAS)
The First Home Buyers Assistance Scheme provides a stamp duty concession for eligible first home buyers, with geographic-based limits applied. This means that no or discounted stamp duty is payable. The scheme is aimed at assisting first home buyers in saving for stamp duty and is available to first home buyers who purchase within price thresholds.
Target: People who are having difficulties saving for stamp duty.
Eligibility: First Home Buyers (FHB), purchasing within price thresholds
For more information, click here.
First Home Owners Grant (New Homes)
The First Home Owners Grant (New Homes) provides eligible first home buyers with $10,000 cash when purchasing or building a new home. This scheme replaced the HomeBuilder Grant. It is targeted towards people who are building or buying a newly built home, and is available to FHB who are purchasing or building within price thresholds.
Target: People building or buying a newly built home
Eligibility: FHB, purchasing/building within price thresholds
For more information, click here.
First Home Buyers Choice
The First Home Buyers Choice scheme provides an option to pay annual land tax instead of upfront stamp duty. This scheme is aimed at people who are finding it challenging to save for stamp duty, particularly those at a higher price point than traditional FHB scheme recipients. The $1.5 million cap means it’s aimed toward those residing in capital cities.
Target: People who are finding it challenging to save for stamp duty, particularly those at a higher price point than traditional FHB scheme recipients
Eligibility: FHB, max purchase $1.5 million
For more information, click here.
Shared Equity Home Buyer Helper
The Shared Equity Home Buyer Helper scheme allows you to co-purchase a property with the NSW Government, meaning that a property can be purchased with as little as a 2% deposit. This scheme is also available to people aged 50+ and ‘key workers’ including nurses, midwives, paramedics, teachers, early childhood educators and police officers. It is aimed at people struggling to save for a deposit, single parents, single ‘elderly’ individuals, and key workers.
Target: People struggling to save for a deposit, single parents, single ‘elderly’ individuals, and key workers
Eligibility: Income caps apply, price caps apply, single parent, or single 50YO+, key worker FHB, people who do not currently own property
For more information, click here.
Federal Schemes:
The Home Guarantee Scheme
The Home Guarantee Scheme includes the First Home Guarantee, Regional First Home Guarantee, and the Family Home Guarantee. The government guarantees part of your loan so that Lenders Mortgage Insurance (LMI) isn’t applicable. This scheme is generally used in conjunction with the NSW First Home Buyers Assistance Scheme so that buyers can purchase property with as little as a 5% deposit (2% for eligible single parents), and the bank will lend 95% without LMI. Limited places are offered through participating lenders only.
Target: First home buyers struggling to save a 20% deposit
Eligibility: FHB, income caps apply, price caps apply
For more information, click here.
First Home Super Saver Scheme (FHSS)
The First Home Super Saver Scheme allows you to draw down on voluntary (additional) super contributions and associated earnings to contribute to the purchase of your first home.
Target: People who have or wish to use their super to save for their first home deposit.
Eligibility: Must be a first home buyer who has made eligible voluntary contributions to super that are able to be withdrawn under the scheme.
For more information, click here.
The schemes outlined above are exclusively available to first home buyers who intend to occupy the property, and therefore cannot be used for investment properties.
Navigating home loan schemes as a first home buyer in Australia can be challenging. That’s why it’s essential to have expert guidance and support to help you make the right decision.
Working with a mortgage broker can be a great option as they have access to a wide range of lenders and can help you find the best home loan scheme to suit you.
To learn more, contact Paul Goldsmith from Highlands Funding.