Buying a first home in Australia is not easy, especially with the increasing rates of properties. However, you don’t need to worry about it because the government offers first-home buyers schemes where different states and territories provide first-home buyers with financial assistance. The amount offered by the scheme may vary between states and territories.
What Grants are Available for First Home Buyers in Victoria?
First Home Buyers Grant in Melbourne
Eligibility criteria may vary between territories and states, however, basic eligibility criteria may include:
- To qualify for the first home buyer grant, at least one of the applicants must be an Australian citizen or permanent resident.
- 18 years old or older candidates can apply.
- The grant is only available to individuals, not companies or trusts.
- Additionally, you and your spouse, partner, or co-purchaser must not have owned any property with a residence on it prior to 1 July 2000, nor lived in a residential property that you owned after that date.
- The grant must not have been claimed by you or any of the aforementioned parties before.
- You must occupy the property as your primary residence for a minimum of 12 continuous months within one year of purchasing or constructing it.
There might be other conditions from different states or territories. To get the first home buyers grant in Melbourne, you need to meet all the eligibility requirements.
Government Schemes for First Home Buyers
The following are some schemes offered by the government to first-time home buyers:
First Home Guarantee
The first home guarantee helps first-time home buyers to purchase a home sooner. As a first home buyer, you can use this scheme to buy a home with only a 5% deposit. However, you can’t use this scheme for buying an investment property. Eligibility criteria include:
- All candidates must be first home buyers and must not have owned an interest in residential property.
- Individual candidates must have earnings of less than $125,000 or $200,000 for couples in the last fiscal year.
- Couples must be in a de facto relationship or must be married.
- 18 years old or older candidates can apply.
- All applicants must carry Australian citizens.
Family Home Guarantee
As the name implies, the family home guarantee supports single parents to purchase a home with only a 2% deposit. Eligible single parents can access this scheme to construct a home or buy an existing home with only a 2% deposit. However, this scheme can’t be used to buy an investment property. Eligibility criteria include:
- You must be an Australian citizen, 18 years of age or over.
- Must be a single parent and must have at least one dependent child.
- Must have earned $125,000 or less in the last financial year.
Regional First Home Buyer Guarantee
The regional scheme helps first home buyers buy a home located in a regional area. With this scheme, first-time home buyers can buy an existing home or construct a home with a deposit of 5%. Only first-time home buyers who have occupied a regional area for the preceding 12 months, can apply. Eligibility criteria include:
- Must not have owned a property previously.
- Apply either joint or single applicant.
- For singles, they must have earned $125,000 or less, for couples, they must have earned $200,000 or less in the last financial year.
Stamp Duty Concessions
Stamp duty is a tax that you have to pay when you purchase a property. It applies to properties purchased for both owner-occupier and investment purposes. If you are a first-time home buyer, then there will be a reduction in stamp duty. Eligibility requirements and type of reduction will vary based on your state.
First Home Super Saver Scheme
The first home super saver scheme allows you to use voluntary contributions from your super fund to use it as a deposit, so you can buy your first home sooner. You can withdraw from superannuation under the first home super saver scheme if:
- You haven’t bought a property in Australia before.
- You haven’t previously had an amount released from super funds under this scheme.
Conclusion
As a first home buyer, you can access various grants and concessions, only if you are eligible. To know, what and how you can access those grants, you can speak to one of our expert brokers at Home Star Home Loan.