First-home buyers can apply for the First Home Loan Deposit Scheme which will allow eligible singles and couples to pay a deposit of as little as 5% on their first home.
Under the scheme, the government acts as guarantor so borrowers won’t need to pay lender’s mortgage insurance, which usually applies when buying with a deposit less than 20 per cent of the value of the property.
The objective of the Scheme is to assist in the purchase or construction of a modest home and the value of the residential property must not exceed the relevant price cap for the area in which it is located.
Who is eligible?
Singles with a taxable income under $125,000 per annum in the previous financial year, and couples with a taxable income of up to $200,000 per annum in the previous financial year.
Couples must be married or in a de factor relationship – siblings, friends or relatives buying together are not eligible. The scheme is only available to owner occupiers, and investment properties are not eligible.
Eligible residential properties include:
- An existing house, townhouse or apartment
- A house and land package
- Land together with a separate contract to build a home
- An off-the-plan apartment or townhouse
Applicant must be first home buyers who have not previously owned or had an interest in a property in Australia either separately or jointly with someone else
- This is a $10,000 grant for purchasers of new properties costing less than $600,000 and owner-builder/building contracts worth less than $700,000.
- If you’re buying land to build a new home, the total price – including the land and home – must be no more than $750,000.
- You will also be eligible for this grant, if you’ve already completed the purchase process or construction has commenced.
First-Home Buyer Assistance Scheme (Existing Homes)
First-time purchasers of existing homes will pay no stamp duty on property worth less than $650,000, or vacant land worth less than $350,000, and reduced stamp duty on properties up to $800,000 or land up to $450,000.
First-Home Buyer Assistance Scheme (New Homes and Vacant Land)
- To be eligible for an exemption or reduction in the amount of duty payable you will need to be a first home buyer who purchases a new home or a vacant block of land on which you intend to build a new home.
- For the full exemption to apply, the value of the new home must be no more than $800,000 and the value of a vacant block of residential land must be no more than $400,000.
- A concessional rate of duty will apply to homes valued more than $800,000 but less than $1,000,000 and vacant block of land valued more than $400,000 and less than $500,000.
The new transfer (stamp) duty threshold will only apply to contracts executed from 1 August 2020 to 31 July 2021.