There are multiple assistances from goverment to help first home buyers in Australia.

Federal goverment level: there has been introduced a First Home Loan Deposit Scheme (FHLDS) to support eligible first home buyers to purchase a home. It does this by providing a gurantee that will allow low to medium income earners to purchase a home with as low as 5% deposit. Each financial year the FHLDS will support up to $10,000 buyers. The guarantee is not a cash payment. How the scheme help buyers? By saving the Lender’s Mortgage Insurance (LMI). Rule of thumb, LMI is payable when buyers cannot come up with 20% deposit; the goverment guarantee helps buyers to save such LMI because approved buyers won’t be charged such LMI by the participated lenders.

In practice, to be approved to receive FHLDS you will have to follow a competitive procurement process.

State goverment level: there are Stamp Duty concessions and First Home Owners Grant (FHOG) to help first home buyers. Eligibility and requirements vary state by state. Generally speaking, Stamp Duty concession is that buyers don’t required to pay duty or only pay discounted duty if the purchase price is not exceeding a certain level. The FHOG is actually cash payment to eligible first home buyers.

For example, in NSW:

Stamp Duty Concession

• NSW abolished stamp duty on new and existing homes worth up to $650,000 for first home buyers.
• For properties valued between $650,000 – $800,000 you get duty concession and concession will be gradually reduced.
• Your solicitor/conveyancer is to assist you with duty matters.

First Home Owners Grant

• The amount is currently at $10,000 provide to
  • Purchasers of a new home up to $600,000 or
  • First home buyers to build a new home up to $750,000.
• Your mortgage broker is to assist you with application of FHOG going through your loan lender/bank.

Hope above helps, if you have further questions, please let me know.

Linda Huo

0413 175 422 or linda.huo@nectarmortgages.com.au