First Time Home Buyers Assistance

Buying your first home is an exciting and daunting decision to make. However, it is one that is made by many people who, with some assistance, are very successful in completing their purchase and enjoying their new home. For those who want to pursue this dream, there are various forms of assistance available from the Australian government. In this article we are going to take a brief look at the three most widely known. 

Option One: First Home Owners Grant NSW 

The First Home Owners Grant has very specific requirements for purchasing a new home. These requirements include; 

1. You must be at least 18 years of age. 
2. You must be a first-time home buyer; you cannot purchase as a company or as a trust 
3. You must be an Australian Citizen or be a permanent citizen; if you do not have either of these statuses, you must be applying/purchasing with someone who does meet one of these requirements. 
4. The property you are purchasing must be one that you will move into within 12 months of the completion of the purchase. 
5. The cost of the new home cannot exceed $600,000.00.  
6. If you are purchasing property, the value of the property and the cost of building the new home cannot exceed $750,000.00. 
7. Individual applicants must have earned less than $125,000 in the last financial year. Couples must have earned less than $200,000 combined in the last financial year  
8. You will still be required to make a down payment of between 5%-20% of the purchase price of the property. This money can come from the grant and/or a combination of the grant and personal savings. 
9. Once moved in, the address must be your primary residence for at least 12 months. Over the course of these 12 months, you must continually occupy the property.  

If you are purchasing an existing home, you could still qualify for the First Home Owners Grant if; 

1. The home you are purchasing was mostly replaced or removed via renovation or rebuilding 
2. The seller, the tenant or the builder before, during or after the renovations occurred 
3. You are the first purchaser after the completion of the renovation process 

If you meet these criteria, you can apply for the First Home Owners Grant. The application process can be handled by yourself and your mortgage broker.  

The maximum you can receive toward your down payment, via the grant, will be $10,000.00. Since it is possible that this will not cover the full percentage required for the down payment, you will probably need to cover the cost from your personal savings, or you can explore additional lending options to cover the balance of the down payment. Again, your mortgage broker can provide you with a full understanding of the options for covering any balance you need to meet the down payment requirements.  

Option Two: First Home Buyers Assistance Scheme 

This is not necessarily a second option but a second offer of assistance to those who qualify for the First Home Owners Grant NSW. This assistance is an exemption from transfer duty for contracts that are exchanged on or after July 1, 2023. Simply put these two additional exemptions are available on purchasing a new or existing home or vacant land. 

1. New Home: If you are buying a new home or an existent home with a purchase price of $800,000.00 or less, you may be exempt from the cost of the transfer duty. 
2. Adjustments are also available if you are purchasing a home with a cost between $800,000 and one million dollars. The adjustments can be applied and thereafter the normal transfer duty rate will apply. 
3. Vacant Land: If you purchase vacant land at a price of $350,000.00 or less, you may be exempt from transfer duty.  
4. In addition, if the purchase price of the vacant land is between $350,000 – $450,000.00 there may be an adjustment and then the normal transfer duty rate will apply.  

Option Three: Shared Equity Home Buyer Help 

The assistance provided with this option is particularly to benefit the following groups of people: 

• Single parents with dependent children 
• A single person over the age of 50 
• A first-time home buyer within one of the following professions; 
• Nurse 
• Midwife 
• Paramedic 
• Teacher 
• Early childhood educator 
• Police officer 
• Survivor of domestic/family violence 

In addition to qualifying by profession, you must also meet the income requirements which are; 

• Single gross income of not more than $90,000.00 
• Couple income not to exceed $120,000.00 
• You must be able to put down at least 2% of the purchase price of the property you are buying 

There are also age and residency requirements; 

• You must be at least 18 years of age 
• You must be an Australian citizen, a New Zealand citizen or a permanent Australian resident 
• The property must be your principal place of residence 

Owning a home is the dream of many. And, while it might seem out of reach, with these options and government programs, buying a home may be more within your grasp than you originally considered.  

In the event that you find yourself in need of assistance, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to assist clients in understanding the full ramifications of any and all of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.