What benefits do I have as a First Home Buyer in NSW?
First Home Guarantee (FHG) formerly known as First Home Loan Deposit Scheme (FHLDS)
The First Home Guarantee is an initiative from the Australian Government designed to support eligible first home buyers purchase a home sooner.
The National Housing Finance and Investment Corporation (NHFIC) provides a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as five percent.
If you want to buy a property today, you typically need to save at least 20% of the property’s value to secure a home loan and avoid paying lenders Mortgage Insurance (LMI) or Low Deposit Premium (LDP) or to avoid relying on a guarantor.
Under the First Home Guarantee, you're required to contribute a minimum of five percent of the property’s value towards the deposit. NHFIC (National Housing Finance and Investment Corporation) then provides a guarantee to the lender covering up to 15% of the property’s value.
Only singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum may be eligible (taxable income as shown on the Notice of Assessment issued by the Australian Taxation Office).
https://www.nhfic.gov.au/what-we-do/support-to-buy-a-home/first-home-guarantee/
Super Saver Scheme
You can make voluntary concessional (before-tax) and voluntary non-concessional (after-tax) contributions into your super fund to save for your first home. You can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these amounts.
You can use this scheme if you are a first home buyer and both of the following apply:
- You will occupy the premises you buy or intend to as soon as practicable.
- You intend to occupy the property for at least 6 months within the first 12 months you own it, after it is practical to move in.
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS (First Home Super Saver) [RM1] scheme, up to a total of $50,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.
FHOG (First Home Owners Grant)
First home owners grants are offered by almost every state and territory government. These are cash grants available to buyers who have never purchased a home before. The eligibility criteria and grant amounts vary a lot depending on where you live.
- You must be a first home buyer as a person, not as a company or trust.
- At least one applicant must be a permanent resident or Australian citizen.
- Each applicant must be at least 18 years old.
In NSW the First Home Owner Grant (New Homes) scheme offers a $10,000 grant for the purchase or construction of new homes. The value of the property of a newly constructed property must be under $600,000. If buying land to build a property, the combined land and dwelling valued must be less than $750,000.
First Home Owner Stamp Duty Concessions for New South Wales (NSW)
The First Home Buyers Assistance scheme provides first home buyers with exemptions from transfer duty (stamp duty) on new and existing homes:
- New homes. If you are buying a new home worth less than $650,000 you pay no stamp duty (if eligible). If the home is valued between $650,000 and $800,000 you can get a discount.
- Existing homes. If you are a first home buyer purchasing an existing home worth less than $650,000 you pay no stamp duty (if eligible). If the home is valued between $650,000 and $800,000 you can get a discount.
- Vacant land. If you buy vacant land under $350,000 then you pay no stamp duty. Between $350,000 and $450,000 you can get a discount on the duty.
