First home buyer grants vary from state to state, so the help available depends on your location. But since the start of 2017, there have been a number of announcements from State governments, extending or boosting their schemes. Those with new measures are outlined below.
If you’ve done the sums on buying your first home and decided it’s out of reach, perhaps it’s time to pull out a calculator again. With these recent changes, your dream home may be in reach after all.
Victoria - Stamp duty relief increased
Stamp duty for purchases under $600,000 has been abolished for contracts entered into from 1 July 2017. Previously, there was a 50% reduction on stamp duty – now, you pay no stamp duty at all.
For homes valued between $600,001 and $750,000, there are stamp duty reductions, calculated on a sliding scale. [i]
In addition, there are two types of grants to first home buyers of new properties:
New South Wales – New stamp duty exemption
From 1 July, the NSW has abolished stamp duty on all homes worth up to $650,000. For properties up to $800,000, stamp duty is reduced; the level of the discount depends on the exact amount.
There is a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000.
And in another boost, you won’t pay insurance duty on lenders’ mortgage insurance (LMI). This is the insurance you’re required to take out if your deposit is below certain threshold - generally 20%. So, while you still need to pay for LMI, you don’t pay extra tax on it.[ii]
Queensland – First home buyer grant extended
The sunshine state’s first home buyer grant provides first-home buyers $20,000 to purchase new houses, units or townhouses valued at less than $750,000.
The grant, was set to expire at the end of June 2017, but in the latest Budget, the government announced the scheme will be extended for another six months, until December 31.[iii]
Other states around Australia
There are first home buyer schemes across all the state and territories, and it’s easy to check the details for your location. This website - http://www.firsthome.gov.au/ - provides a link to each state or territory’s relevant web pages.
How to claim the grants
Buying your first home can be daunting, and dealing with government agencies even more so!
Fortunately, when you work with a professional mortgage broker, you have someone with you every step of the way.
Not only will they walk you through all the paperwork and processes, they will also take the lead on claiming your government grants or exemptions.
It’s just one more reason to speak to an expert about turning your first home dream into a reality.