4 Great Government Incentives Every First Home Buyer Should Know
First Home Owners Grant Qld (FHOG) - you are given $30,000
To be eligible you must:
be an Australian citizen or permanent resident
not have previously owned property in Australia that you have lived in ( nor spouse)
buy a brand-new home (or build) for less than $750,000
move into the house within 1 year and live there continuously for 6 months
Note: all purchasers & borrowers & spouses must not have owned a property in Australia.
current as of May 2024
2. First Home Loan Deposit Scheme (FHLDS)- save approx. $16,000 LMI costs
To be eligible you must:
save 5% of the purchase price of your property and be an eligible First Home Buyer
be single, married, or defacto ( not friends/relatives) Aussie Citizens only
borrow 95% of the home price, but you avoid the cost of Lenders Mortgage Insurance (LMI).
purchase the owner-occupied home for SEQLD for $700,000 or less. (NSW metro -$900,000)
NOT be earning incomes more than $125,000 a year ($200,000 for couples)
be any approved property - does not need to be a new home
Access is limited per financial year. Check eligibility with us.
3. Family Home Guarantee (FHG)
eligible single parents/guardians, with at least one dependent child, to purchase owner-occupied
Minimum 2% genuine savings required, borrow up to 98% LVR,
Single income $125k pa: child support payments are not included
not just FHBuyers, who do not currently own property,
Check the relevant website
Check the relevant site: https://www.nhfic.gov.au/support-buy-home/eligibility-tool
FHBuyer Transfer Duty Concession - save up to $15,925 on transfer duty
To be eligible you must:
have never claimed the first home vacant land concession
have never held an interest in another residence anywhere in Australia or overseas
move into it and live there on a daily basis within 1 year of settlement
the Queensland residence is valued below $500,000 for full concession (partial - up to $549,999)
the NSW residence is valued below $800,000 for full concession (partial - up to $1mil )
Your Occupation and Income:
LMI costs are waived to 90% or 95% To Be eligible: work in the following professions.
Medicine- Drs & Specialist - waived to 95%
waived to 90%: Physio, Chiropractor, Vet, Optometrists, + Nurses and Midwives with income above $90k Sports and Entertainment persons- with accredited agent Solicitors, etc, Accountants ( with current memberships) earn above $120k pa Education( teachers, Uni, childcare) or healthcare ( therapists, social, aged care, speech, etc)
The Banks that lend to 85% or 90% No LMI
"No LMI Loans " -Lenders lend to 85% or 90% with no LMI costs
for all types of lending, purchases, Firsthome buyers, refinances, loan increases, etc
Cost: - the interest rate will be higher for No-LMI loans.
"The Bank of Mum and Dad” or Guarantors - to avoid LMI costs
Here are four ways that family can help to purchase property:
a) Guarantor on a loan - placing home/property/cash as additional security, lend up to the full amount to purchase avoiding LMI costs
b) Gift some money for deposit best to gift 20% or at least 10% + purchase costs
c) Buy the house with the relative as co-purchaser but the FHBuyer would lose FHOG and full transfer duty concessions.
d) Parents with cash/equity can make an investment into a managed deposit, then establish an equivalent loan to the child on terms suitable to parents paperwork agreements provide a structure to protect the parent great protection for the guarantors - as a third party facilitates the loan child will need to service parent's loan and new homeloan repayments
So, To Summarise
Purchase a new home as your first home for less than $500,000 in the Brisbane area; to live in; and save 5% in Super or savings you may be eligible for all 4 FHBuyer options.
And if the property is not new - then you may be eligible for 3 options - ineligible for FHOG.
(all these options and schemes require further discussion and T&Cs)
Call or text: M 0401 771241 David. We are here to help and answer your questions.