Know the facts about The First Home Loan Deposit Scheme and the First Home Owners Grant (FHOG) NSW.
First Home Loan Deposit Scheme.
The scheme started on the 1st January 2020. This scheme is designed to help the first home buyers purchase a home faster, by lowering the deposit needed to take out a home loan.
The Australian Government, through the National Housing and Finance Investment Corporation (NHFIC) will guarantee the difference between your deposit (of at least 5 percent) and 20 percent of the value of your home. This means first home buyers can enter the market sooner and be exempt from paying Lenders Mortgage Insurance (LMI), which can potentially save them thousands.
First Home Owners Grant (FHOG) NSW
The First Home Owners Grant NSW 2020, called the ‘First Home Owner Grant (New Homes) Scheme’ was developed to assist eligible first home owners to purchase or build a new home by offering a $10,000 grant.
The NSW Government’s comprehensive package to improve housing affordability is focused on helping first home buyers, who often face stiff competition from investors.
For first home buyers, this comprehensive package will:
The First Home Buyers Assistance scheme provides first home buyers with exemptions from transfer duty on new homes valued up to $650,000 and concessions for new homes valued between $650,000 and $800,000.
No duty is payable by eligible purchasers buying a vacant block of residential land valued at up to $350,000, while concessions are available for vacant land purchased for between $350,000 and $450,000.
Are you eligible?
First home buyers are entitled to the First Home Grant, however, the amount payable and eligibility criteria varies by state. The guidelines for First Home Owners Grant eligibility in NSW are:
You will not be eligible for the First Home Owner Grant if you or your spouse:
Every first home buyer should take the necessary steps to understand their options and support available, to help make the process as smooth as possible.
It is important to fully understand what you are getting yourself into. You will need to know about the current economic climate, as well as what is happening in the property market at this particular point in time. It will require an extraordinary amount of research as a young investor in order to make a well-informed decision. However, it is possible to jump start the process by simply approaching our friendly staff at Code Homes who have been successfully advising new home-owners for decades.
New technology is emerging every day which radically changes the way in which businesses and corporations are operating. This is why our highly trained employees are constantly researching and learning in order to ensure that the company is fully coherent with the latest concepts and innovations in the construction industry.
Code homes has a range of construction solutions to suit the first home buyer, so please give us a call to discuss the many options available.
THIS ARTICLE PROVIDES GENERAL INFORMATION AND HAS BEEN PREPARED WITHOUT TAKING INTO ACCOUNT YOUR OBJECTIVES, FINANCIAL SITUATION OR NEEDS. WE RECOMMEND THAT YOU CONSIDER WHETHER IT IS APPROPRIATE FOR YOUR CIRCUMSTANCES. YOUR FULL FINANCIAL SITUATION WILL NEED TO BE REVIEWED PRIOR TO ACCEPTANCE OF ANY OFFER OR LOAN PRODUCT. IT DOES NOT CONSTITUTE LEGAL, TAX OR FINANCIAL ADVICE AND YOU SHOULD ALWAYS SEEK PROFESSIONAL ADVICE IN RELATION TO YOUR INDIVIDUAL CIRCUMSTANCES. ALL LOAN APPLICATIONS ARE SUBJECT TO LENDERS’ TERMS AND CONDITIONS, AND ELIGIBILITY CRITERIA. LENDER FEES AND CHARGES WILL APPLY.