Is 2022 the year you’re going to build your first home? We want to help you feel as prepared and knowledgeable as possible, particularly when it comes to any assistance you can receive at a state and federal level to help you get into your first home sooner! Two of the most important parts of your financing are the First Home Loan Deposit Scheme, and First Home Owner Grants, and we’ve a quick summary of each below.
First Home Loan Deposit Scheme
Recently the Australian Government announced the introduction of a First Home Loan Deposit Scheme to support eligible first home buyers to purchase a home faster. The Scheme came into effect on January 1, 2020 and is administered by the National House Finance and Investment Corporation (NHFIC). 10,000 First Home Loan Deposit Scheme places will be available to first home buyers from 1 July 2021 to 30 June 2022. Eligible applicants are subject to criteria relating to income thresholds: for single purchasers the income threshold is $125,000 and for couples is $200,000. Applicants must be 18 years of age or older, be an Australian citizen, and all purchasers of the house or land cannot have previously owned an interest in land in Australia which had a residence on it before July 1, 2000.
If you’ve saved 5% of the purchase price of your property, the government will guarantee the remaining 15% of the deposit. This means that while you still need to borrow the remaining 95% of your home’s purchase price, you won’t need lenders mortgage insurance. The Scheme will also have property price threshold criteria for each state and territory, which will ensure the scheme is only available for the purchase of modest homes, or the purchase of land and the subsequent construction of a modest home. It’s also important to note that the scheme is not available for investment properties, so you must occupy the home as your principal place of residence within twelve months of the construction or purchase of the home, for a minimum period of twelve continuous months.
First Home Owner Grant Changes
Depending on your state, you may be eligible for a First Home Owners Grant to help you get in to your own home sooner. Many states have recently made changes to the eligibility criteria for their First Home Owner Grants, which you can read about here. It’s also worth noting that many of these grants have eligibility criteria that may be subject to buying or building a home in a regional or metropolitan area. Most state grants are subject to the land or home’s value not exceeding a certain amount, and it’s worth noting that the regional Victoria grant stipulates that the building work must start no later than June 30, 2021 to be eligible, and the Tasmanian grant reduces from $20,000 to $10,000 from July 1, 2020.
Each state and territory First Home Owner Grant and bonus payments within Australia are subject to further terms and conditions, and further eligibility criteria, so check with your State Revenue Office to find out more information.
First Home Buyers Resources
We know what a truly exciting milestone your first house purchase is and even though it may seem daunting, at Hotondo Homes we’ve put together a wealth of resources to assist you with all your planning. Our website features information about the First Home Owners Grants in each state so you can see exactly what you’re eligible to receive. We have a suite of eight calculators to help you understand things like your borrowing power, how much your loan repayments will be, a loan comparison calculator, a stamp duty calculator, plus much more. We’ve also got ten beautiful homes in our Forever Retreat range perfect for first home buyers to get their foot in the door of the property market, and our blog features plenty of tips, tricks, and advice for anyone ready to build or buy their first home!
Hotondo Homes is ready to get you started on your journey towards home ownership, and our builders will work with you through each stage of your building process from finding the perfect design that suits your budget, to handing over the keys to your very first new home. We know how much you want to celebrate this amazing milestone and we’ll be with you every step of your building journey to help you navigate the process. To find a builder local to you, head to our website today.
Hotondo Homes is not a registered financial advisory and therefore we recommend you speak to your financial advisor or mortgage broker to receive expert advice before you enter into a real estate contract of sale.