First Home Buyers
Buying your first home is a very exciting and satisfying experience.
However there are a number of things to be aware of ranging from the various government benefits for first home buyers to understanding the requirements the various lenders place on you before they will give you a loan. Don’t be worried about the number of things to consider … that’s where we come in …
Our service at Synapse Finance Solutions won’t cost you anything and we provide the best personalised professional assistance through the entire buying process.
We’ll explain to you how government grants and stamp duty exemptions can save you up to $40,000.00 off the cost of your new property in some states. So clearly these benefits are worthwhile if you’re eligible!
As the grant and tax benefits are different in each state, it is best to fill out the enquiry form at the bottom of this page and we will contact you to discuss your individual needs.
Remember, our service is provided completely free to you so if you are looking to buy a home or investment property in the near future, we definitely recommend speaking to one of our experienced consultants.
Here are some basic information about the First home owners grant
To be eligible for the federal government’s First Home Owners Grant scheme you must be an Australian citizen or permanent resident and you (and your spouse / partner) must have not previously owned a home in Australia. If there are 2 applicants, at least one applicant needs to be an Australian citizen or permanent resident to qualify.
The grant amount varies from state to state. In NSW, QLD, and the ACT it is currently $14,000 ($21,000 for new unlived in properties). In VIC and NSW, first home buyers receive an extra $3,000 taking the grant to as high as $24000. In VIC however stamp duty exemptions are not as favourable as some other states.
The government gives you the First Home Owners Grant in the form of cash to add to your deposit and this is usually paid at the time of property settlement. The property you buy must be an owner occupied property and legislation introduced back 2004 requires you live in the property for a period of at least 6 consecutive months commencing within the first 12 months after purchase. Therefore, there is some flexibility in complying with this legislation and you still may qualify if you decide not to live in the property straight away or alternatively, live in it for six or more months and then rent it out afterwards.
The First Home Owners Grant application can be submitted up to 12 months after the property purchase has settled.
Stamp duty concessions
In NSW first home buyers are eligible for the First Home Plus stamp duty exemption scheme which gives first home buyers discounts on stamp duty payable dependant on the cost price of the purchased property. Similar to the First Home Owners Grant, eligible applicants must be an Australian citizen or permanent resident and you (and your spouse / partner) must have not previously owned a home in Australia. There are equivalent schemes in other states however the exemptions receivable vary greatly, so if you are unsure, why not give us a call.
The First Home Plus scheme in NSW gives a 100% stamp duty exemption for property purchases up to a cost price of $500,000 ($300,000 if vacant land).
A $500,000 first home purchase in NSW,QLD & WA for example will have no stamp duty payable (on the transfer of title nor on the mortgage) saving up to $19,000 in stamp duties normally payable. Above a $500,000 cost price, purchasers are on a sliding scale of increasing stamp duty up to a purchase price of $600,000 where 100% stamp duty is again payable.
Your deposit
If you’re a first home buyer, you will need to provide some amount of deposit towards the purchase of your first home. The amount of deposit you require is dependent on a number of factors including the cost price of the property and the corresponding loan amount you arrange against your property the cost of stamp duties and other purchase costs (e.g. loan application fee, mortgage registration fees, legal costs, mortgage insurance premium) whether any other security property can be pledged by family towards your purchase.
The loan amount depends on the policy of the various lenders however in general the maximum loan against your new purchase is 90% of the value of the property.
As a guide in NSW,
90% loan - the deposit amount you would need ranges from ~$18000 for a $300,000 property to ~$38,000 for a $500,000 property
Remember…. If you’d like us to help you work out your loan options - it’s just 30 seconds away by filling out our short online enquiry form.
