The Federal Government Budget for 2021/22 was recently handed down with some exciting news for aspiring first home buyers and others looking to buy their next home. The Government announced five schemes on offer starting in the new financial year to help turn your dreams into a reality.
The 5 Government Initiatives
1. Family Home Guarantee
10,000 spaces for eligible sole parents with dependent children to purchase a home (new or existing) with a deposit as low as 2 per cent.
The Family Home Guarantee assists single parents with dependents regardless of whether the parent is a first home buyer or has previously owned property before.
The only eligibility requirements are that applicants must be Australian citizens, at least 18 years of age and have an annual taxable income no greater than $120,000.
Eligibility is also subject to the individual’s capacity to secure a home loan.
2. First Home Super Saver Scheme
Eligible first home buyers will be able to access up to $50,000 of their voluntary superannuation contributions to put towards purchasing their first home.
As part of the 2021-22 Budget, the Federal Government has raised the First Home Super Saver Scheme limit from $30,000 to $50,000. This scheme allows first home buyers to make deposits to their super accounts for withdrawal later to buy an owner-occupied home.
3. First Home Loan Deposit Scheme (FHLDS)
10,000 spaces for eligible first home buyers to purchase a home (new or existing) with a deposit with as little as 5 per cent (lenders criteria also apply).
The FHLDS has been extended, allowing first home buyers to purchase an existing home or build a new home with a deposit as little as 5 per cent, with the government acting as guarantor for the outstanding balance of 15 per cent.
As per our recent update, the FHLDS eligibility has been increased as of the 1st of July.
The First Home Loan Deposit Scheme can be used in conjunction with other schemes such as the First Home Super Saver Scheme, HomeBuilder Grant or state and territory First Home Owner Grants.
10,000 places will be available as of the 1st of July, but we already of have access to lenders who will accept home loan application on the basis of the First Home Loan Deposit Scheme.
The HomeBuilder program provides eligible owner-occupiers (including first home buyers) with a $25,000 grant to build a new home or substantially renovate an existing home.
The construction period for existing applicants under the $25,000 HomeBuilder Grant has been extended to 18 months.
The HomeBuilder grant can be used with existing state grants like First Home Owners Grant and the First Home Loan Deposit Scheme.
5. New Home Guarantee
10,000 places made available for eligible first home buyers seeking to build a new home or purchase a newly built home with a deposit as low as 5 per cent.
Like the First Home Loan Deposit Scheme (FHLDS), the New Home Guarantee scheme helps first home buyers build or purchase a new home with a deposit as low as 5 per cent.
However, only newly constructed dwellings, off-the-plan dwellings, house and land packages, or land and a separate contract to build a new home are accepted under this scheme.
How Zobel can help
As can be seen above, there are a number of Government schemes available to support new home purchases and builds. Each of these schemes has its own set of eligibility requirements so Zobel can help ensure your eligibility before submitting your application.
Zobel will provide information on what Government schemes and grants may be available to you, walk you through the application process and most importantly – find you a great deal on your home loan!
Request an appointment with Zobel today.