First home buyers benefits

If you in the market for your first home, make sure you look into the some of the benefits you may be eligible for.

First home buyers grant

The first homeowner grant (FHOG) is a one-off payment to encourage and assist first home buyers who build, substantially renovate or buy a new home. A $10,000 grant is available for eligible first homeowners who use the home as their principle place of residence.

First home buyers stamp duty or concession rates of duty

While the government tends to take “a cut” of everything these days, first home buyers may be able to take advantage of discounted stamp duty rates or avoid the cost altogether if eligible for the government initiative. Avoiding the thousands of dollars associated with this tax means that you could put the funds to better use. A new couch, tv or have it sitting in an offset account against loan!

The home buyer’s assistance account

A grant from the Home Buyers Assistance Account reimburses some of the incidental expenses incurred during the purchase of a first home in Western Australia. If applicants meet all criteria, they’re eligible to receive a grant of up to $2,000!

First home super saver scheme

You can make voluntary before-tax, and voluntary after-tax, contributions into your super fund to save for your first home. You can then apply to release your voluntary contributions, along with any associated interest earnings, to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these super savings.

Government mortgage guarantee scheme

From January 2020 eligible first home buyers with a 5% deposit or more will be able to avoid Lenders Mortgage Insurance (saving you thousands!!!). The government will effectively be the first home buyer’s “guarantor” on the loan. Only 10,000 guarantees (first home buyer loans approved via this scheme) will be available each year with strict criteria on eligibility. You’ll need to get in quick to take advantage of this option.

Bank based discounts

Some banks are working to support first home buyers by offering specific loan products with special discounts and extras added in. Along with reduced rates, you may be able to avoid annual fees and charges that non first home buyers have to pay.

Bank purchase incentives

How does $2,000 sound? When looking to buy your first home make sure you ask your lender (or get your broker to ask them!) if you are eligible for a cashback incentive for choosing them over your other options. Lenders and banks are offering as much as $2,000 cashback, and this much needed cash will cover a large portion of purchase costs that you normally have to cover.

 

Buying your first home is a big step, but you don’t have to do it alone. We’re here to assist and the benefit of using a mortgage broker ensures we get the best possible option suited to your situation, we negotiate with lenders on your behalf and we have the experience and industry knowledge to ensure you fully understand your options and take advantage of all the rebates, discounts and incentives currently on offer… it can get very confusing due to multiple options currently being available!

Get in touch with us to find out which grants you’re eligible for and ensure the purchase of your first home is a great experience with minimal stress.

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