Other eligibility criteria apply, check out the relevant government websites for the FHLDS
. Eligibility for the FHBDS varies by state, see the relevant state websites: NSW
First Home Loan Deposit Scheme
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 March 2020, if you bought a $600,000 property with a 5% deposit ($30,000) you would have to pay $25,365 for LMI. This scheme could save you the cost of LMI.
THE FINE PRINT: The Scheme will only support up to 10,000 loans each financial year, starting from 1 January 2020. There are 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.
First Home Super Saver Scheme
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: According to the government, for most people, the FHSSS could boost the savings they can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account.1
- Earn more money – money saved using the First Home Super Saver Scheme generally earns higher interest than you’d earn in a savings account. – 3.91% vs 0.75% p.a.2 Your money in super is also invested, any earnings above the deemed rate of return stay in your super account for the future. And, in 2019 our High Growth investment option returned 22.07%3! 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%!
THE FINE PRINT: Per person, the maximum amount you can withdraw is $50,000 for your first home deposit, plus the interest earned, less any taxes. If you purchase the first home as a couple, it could be up to $100,000. The $50,000 limit on eligible contributions will only apply to requests for FHSS determinations made from 1 July 2022. The previous $30,000 limit on eligible contributions will apply to requests for FHSS determinations made before 1 July 2022. You need to apply to the ATO for a determination before you sign, and request your money to be released within two weeks of signing a contract
First Home Owner Grant Scheme
WHAT IT IS: Get $7,000 - $20,000 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