First Home Guarantee (FHBG)
WHAT IT IS: The government acts as a guarantor, allowing eligible first home buyers to purchase a home with only a 5% deposit.
HOW YOU BENEFIT: Generally, if you have a deposit of less than 20%, you will need to pay Lender’s Mortgage Insurance (LMI) or have a guarantor who places a portion of their own home’s value as security. This is security for the bank, in case you can’t pay back your loan. With this scheme, you won’t have to pay LMI or find a guarantor if you have a 5% deposit.
Based on calculations using
Your Mortgage's LMI calculator in July 2023, if you bought a $600,000 property with a 5% deposit ($30,000) you would have to pay $31,008 for LMI. This scheme could save you the cost of LMI.
THE FINE PRINT: From 1 July 2023 – 30 June 2024, there are 35,000 FHBG places are available. There are property price caps on the maximum value of the house based on location, check your area
here. To be eligible, your taxable income must be less than $125,000 per annum for singles and below $200,000 per annum for couples.
Check here for more information and eligibility criteria.
First Home Super Saver Scheme (FHSSS)
WHAT IT IS: Take advantage of the growth and tax benefits of super to save for your first home deposit within your super account. You can personally contribute up to $15k per year up to a total of $50k into your super account.
HOW YOU BENEFIT:
- Earn more money – money saved using the First Home Super Saver Scheme generally earns higher interest than you’d earn in a savings account. – 6.90% vs 4.10% p.a.1 Your money in super is also invested, any earnings above the deemed rate of return stay in your super account for the future. Find out more about our investment options.
- Save tax – Super is generally taxed at 15%, compared to your personal income tax rate which could be as high as 47%!
First Home Owner Grant Scheme (FHOGS)
WHAT IT IS: Get $7,000 - $30,000 towards your deposit if buying newly built or off the plan home.
HOW YOU BENEFIT: This scheme provides a grant to eligible first home buyers who purchase newly-built or off the plan, or are building a brand new home.
THE FINE PRINT: The grant varies by state, and so does the eligibility criteria for the value of the home. In NSW, for example, the newly constructed home must be valued under than $750,000. Check your state
here.
As at July 2023: