family looking at new home with realtor

For first-time buyers, the journey to finding and purchasing a property can be confusing and competitive, especially with challenges brought on by the pandemic, rising property prices, and stricter lending conditions.

The Australian government offers many incentives and grants to help first home buyers purchase their dream property. As your property experts, we will keep you informed of everything you need to know as a first home buyer.

1. First Home Super Saver Scheme

The Australian government has announced that the maximum release amount for the First Home Super Saver Scheme (FHSSS) will be increased to $50,000 in the 2021-2022 Federal budget. The budget also includes technical amendments that will make it easier for first-home buyers to enter the property market.

2. First Home Loan Deposit Scheme

The National Housing Finance and Investment Corporation (NHFIC) has created a scheme to help low and middle-income earners buy their first homes.

The First Home Loan Deposit Scheme allows first home buyers to buy a residential property with a five per cent deposit. The Federal government will act as a guarantor for up to 15 per cent of the loan, so you won't have to pay Lenders Mortgage Insurance (LMI).

3. Family Home Guarantee

This new scheme works similarly to the First Home Loan Deposit Scheme but prioritises single parents with dependents. Its function is to guarantee the loans of single parents who are first home buyers by helping them purchase a house with just a two per cent deposit.

4. Australia's First Home Owner Grants

Australian states and territories offer the First Home Owner Grant (FHOG) to help first-time home buyers purchase their dream property. The amount of the grant and the eligibility requirements differ depending on the location. Several Australian states and territories offer other types of concessions (reduced rates) or exemptions on stamp duty to help reduce your costs.

Applying for First Home Buyer Incentives

Several government schemes and grants help first-home buyers get on the property ladder. But there are a few things you need to know before you can access them.

For example, the First Home Loan Deposit Scheme requires a household income of no more than $125,000 per year. If your household income is higher than this, you may still be eligible for other grants and government schemes.

To find out what grants and assistance you're eligible for and the requirements to access these benefits, visit the Australian government's First Home Owner Grants page or speak to an experienced property advisor.

The market is competitive and it's important to have all the facts so you can take advantage of all the assistance available. Most importantly, you need an experienced property advisor who will put your interests first. 

Conclusion

First home buyers play a vital role in the Australian economy and the housing industry. The Australian government is always looking for ways to help this particular group of homeowners.

But with so many rules and regulations, it's easy to get overwhelmed and miss out on opportunities to buy your first home. That's why you must partner with an experienced property advisor to help you get the government grants and assistance you are eligible for.

Wealthy You is an Australian mortgage company servicing Sydney for almost a decade, offering various mortgage solutions to meet the specific financial needs of every client. As an alternative lending specialist, we can make refinancing your home simple. If you want access to the best home loans in Sydney, get in touch with us! We look forward to meeting you.

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