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First Home Buyer

Buy an Off-The-Plan property for your First Home and not only do you get a beautiful, brand new home, you also save tens of thousands of dollars!
AND you get into the property market sooner!

GOVERNMENT ASSISTANCE FOR AUSTRALIANS

FIRST HOME OWNER GRANT (FHOG)

The Australian Government offers assistance to First Home Buyers when looking to buy their first home.

It is ONLY available when purchasing brand new or Off-The Plan property.

The First Home Owner Grant scheme is a national scheme funded by the States and Territories and administered under their own legislation.

In most States, you &/or your spouse cannot currently own or have previously owned a property you have lived in. Though you could own or have owned an investment property and still be eligible.

In some States, if you or your spouse have previously owned a property, you may still be eligible if it was purchased after 1 July 2000 and you did not occupy the home for a continuous period of 6 months or longer.

You may also still be eligible if you previously owned property in another State than where you are currently wanting to buy.

If you are buying or building a brand new home you may be eligible to receive a Grant of up to $20,000.

The Grant is available once construction commences, so you will still need deposit funds to secure the property, though Blaq Property may be able to assist you in negotiating a smaller deposit with a builder/ developer so that you need less savings up front.

For the different eligibility criteria & property value caps for each State and Territory GO HERE

First Home Buyer | Blaq Property | Off-the-Plan Specialists

STAMP DUTY SAVINGS

In addition, you will also be eligible for reduced or NIL Stamp Duty/Land Transfer Duty fees, depending on the purchase price and what State or Territory you buy-in.

Saving you many Thousands of Dollars!

CALCULATOR HERE

FIRST HOME SUPER SAVER SCHEME (FHSS)

The FHSS scheme allows you to save money for your first home inside your Superannuation Fund.

This will help first home buyers save faster with concessional (before tax) voluntary contributions (you will be taxed at 15% within your Super rather than being taxed at the income tax rate of 19%-45%)  and also with non-concessional (after tax) voluntary contributions into your fund.

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 scheme, up to a total of $50,000 contributions across ALL years. You will also receive an amount of earnings (from where that Super was invested) that relate to those contributions.

CLICK HERE FOR DETAILS

House and Land | Blaq Property Off-the-Plan Specialists

THE FIRST HOME GUARANTEE (FHBG) 

In addition to the First Home Buyers (FHB) Scheme and Stamp Duty Savings you may also be eligible to claim the Australian Government First Home Guarantee (FHBG)

The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible first home buyers purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

Under the FHBG, part of an eligible first home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lender’s Mortgage Insurance (LMI).

Any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender).

This Guarantee is not a cash payment or a deposit for a home loan.

From 1 July 2022 – 30 June 2023, 35,000 FHBG places are available to eligible first home buyers.

For full details and Eligibility criteria visit:

https://www.nhfic.gov.au/support-buy-home/first-home-guarantee

THE REGIONAL FIRST HOME GUARANTEE (RFHBG)

The Regional First Home Buyer Guarantee (RFHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible first home buyers purchase a home sooner. It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

The RFHBG aims to support eligible regional first home buyers to purchase a home in a regional area. From 1 October 2022 – 30 June 2023, 10,000 RFHBG places are available to eligible regional first home buyers.

Under the RFHBG, part of an eligible regional first home buyer’s home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance.

Any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.

For full details and Eligibility criteria visit:

https://www.nhfic.gov.au/support-buy-home/regional-first-home-buyer-guarantee

What is LMI and how does it work?

Lenders Mortgage Insurance is a fee banks and other finance lenders charge borrowers when they are deemed high risk. Usually, this is when their deposit is less than 20% of their property’s purchase price and the lender is loaning more than 80% of the property value.

LMI can either be paid upfront or capitalised into the loan.

On a normal property purchase when you are required to pay LMI, it typically costs over $10,000.

Change in Finances | Blaq Property | Off-the-Plan Specialists

Tips For Being Finance & Grant Ready

Be prepared
Having all your records up to date and accessible is essential. This will make the application process a lot faster.

Ensure you have your:

  • Identification
  • Proof of employment
  • Savings history
  • Evidence of current assets and
  • Statements of all debt.

Minimise your spending NOW!
Put the brakes on your spending to demonstrate good budgeting and financial discipline.

Clean up your credit – NOW!
Even if you have a credit card with a zero balance, lenders will see there is always a chance for you to dive into debt up to your credit limit.

So close down or reduce your credit limits where you can. That includes buy now, pay later options!

The more ‘available’ credit you have access to, the less you will be able to borrow.

Stay in your current job
Those who can show a strong and consistent employment history will stand a better chance of approval.

If you have started a new job recently, you will need to wait until your probationary period is complete before applying for Finance and the different Grants.

 

Increase your chances of being mortgage ready by using a Mortgage Broker to help you choose the right Lender & to prepare your Applications.

A mortgage broker does the running around on your behalf saving you heaps of time and stress.

PLUS there is no cost to you- the lender pays them a commission.

They will help you every step of the way and their expertise in presenting your application could mean the difference in your obtaining loan approval… Or not!

Contact us for help choosing a mortgage broker

Have a question, want to know more? Get in touch today or if you are ready to get started book in a short consultation with Rachelle.

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