Home LoanFirst Home Buyer Schemes for You and Your Family

March 25, 2024

Are you ready to buy your first home in Sydney but uncertain how to make it more affordable? The First Home Buyer Scheme in Sydney offers needed financial assistance to eligible buyers like grants, tax exemptions and reductions, and a First Home Guarantee.

The NSW government has several first home buyers schemes and each of them is offering different forms of financial assistance such as grants, exemptions and low deposit loans. Eligibility for these assistance schemes has specific criteria like Australian citizenship or permanent residency, property value thresholds and circumstances about co-ownership or previous property ownership. Thus, necessitating thorough understanding before filing an application. First-home buyers in Sydney are recommended to research and study the different assistance schemes to compare their pros and cons, ask for professional financial advice for educated decision-making and make sure all paperworks are submitted within the application period to stretch the opportunities the government provides.

First Homeowner Grant

The First Homeowner Grant is a one-time discount for payments of $10,000 which intends to help first homeowners carry the expenses of purchasing their dream house. This assistance scheme is relevant for first time buyers looking to buy or build their new home which includes:

  1. newly built houses
  2. townhouses
  3. apartments
  4. units
  5. and similar properties bought off the plan or renovated.

To be eligible for this first home buyer assistance scheme, the buyer must buy or build their first new house and the property value must meet specific amounts. This grant is an advantage for first time homeowners which simplifies the financial hardship and allows them to enter the property market with confidence.

First Home Buyers Assistance Scheme

This was developed to open the way for first time homeownership. The scheme offers a full exemption from transfer duty for new or existing homes valued up to $800,000. And an exemption for vacant land valued up to $350,000. To be qualified for this scheme, buyers must settle in the property within 12 months of agreement or completion date. The total amount of the first home should not exceed $600,000. This first home buyer scheme notably supports first home buyers which reduces upfront charges and makes homeownership more achievable.

First Home Guarantee

It is a government assistance to support eligible first home buyers. This scheme allows buyers to get or build a new home with a low deposit as little as five percent. The scheme could be as low as two percent for eligible single parents which makes the property purchase more convenient. This scheme allows eligible first home buyers to safeguard their home with a mere five percent deposit only. This scheme is braced by national housing finance which bypasses the Lenders’ Mortgage Insurance requirement and leads to a lot of savings on initial charges. By reducing the deposit requirement, this scheme brings homeownership closer to reality for many aspiring home buyers in NSW.

Requirements for First Home Buyer Schemes

While these schemes are created to help first-home buyers, it’s necessary to take note that there are requirements that need to be met. These requirements include:

  1. Australian Citizenship
    This is a major requirement for first home buyers schemes in NSW. This requirement guarantees that the advantages of these schemes are administered towards citizens dedicated to living and investing in Australia. But, buyers who are not citizens or permanent residents can still be qualified for a full exemption or a reduced transfer duty costs under the FHBAS. They may also be qualified for some duty exemptions, concessions or grants which includes the possibility to pay stamp duty at a reduced amount. That’s why exploring these options is valuable even if you don’t have the citizenship or residency requirement.
  2. Property Value Thresholds
    Property value thresholds are another requirement to take advantage of these first home buyers schemes. These thresholds differ depending on the scheme and review the price of the property a first home buyer wants to buy or build or the land they plan to develop.
  3. Co-ownership and Previous Property Ownership
    These also influence eligibility for first home buyers schemes. To be qualified, buyers and their spouses must not have previously bought or co-owned a residential property in Australia or received a First Home Buyer Grant or duty concessions for a co-owned residential property. There are specific exceptions to this rule.

Buying your first dream home is a fulfilling milestone and the walk to homeownership can be complicated and demanding. But it becomes much more attainable with the proper assistance and support. NSW’s different assistance schemes and initiatives are created to give financial help and make homeownership more achievable for first home buyers. Another tip is to ask professional advice from experts such as mortgage brokers or financial advisors. These professionals can help you through the process and offer advice and recommendations on requirements, grants, loans, deposits, costs, taxes and more. They can also aid the application process and make sure that you maximise the schemes’ advantages.

Australian Financial and Mortgage Solutions’ Role in Fulfilling Your First Home Goals

We are a prime financial services provider devoted to assisting first home buyers in getting into the complicated world of property and homeownership through different government schemes which includes the First Home Buyers Scheme in Australia. AFMS gives personalised financial solutions, mortgage counsel and expert advice to help buyers reach their dream of home ownership. AFMS helps clients go through the application process for government first home buyers schemes like the First Home Buyers Scheme which ensures observance with requirements and enhances availability of incentives and exemptions.

Ready to turn your dreams into reality?

Australian Financial and Mortgage Solutions makes sure that finding the best home deal will be easy and accessible. That’s why we’re committed to helping you go through the first home buyer scheme to achieve your lifelong dream. Go and reach your real estate goals with us!

Contact Australian Financial and Mortgage Solutions today for a one on one consultation and let our dedicated team of experts guide you towards a more secure financial future.