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When you're living in someone else's house and feel like the rent you're paying is just dead money, the thought of paying it off your own home is very appealing.
But how do you save for a deposit when a huge slice of your income goes towards the rent and property prices seem to rise faster than you can save?
It's now easier to get into your own home now than it has been for some time thanks to these factors:
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| Don't have a deposit? |
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Do you want to get into in the property market but you haven't been able to save a deposit?
There are some options open to you:
Some lenders are willing to lend you the full amount of a property plus start up costs (up tp 107%). They may require a relative (usually your parents) to guarantee the loan, sometimes using their own house as security. It is generally better to find another way other than cross securitising someone else's property. Because of the "all monies clause" in many loan contracts, the guarantors house is always tied to the other asset even after all or most of the debt has been paid off.
Some lenders may even lend you the full amount without much security. However, they will usually require strong evidence of stable employment and income and you will often pay a slightly higher rate of interest.
It is always better to have a deposit if possible, even if it is only 3% - 5%. Higher deposits, up to 20%, also eliminate the cost of Mortgage Insurance.
If require any additional information then submit your details in the Online Application, or Contact Us directly, or phone us on 0500 551 800.
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Federal Government First Home Owners Grant |
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The Federal Government's First Home Owner Grant Scheme (FHOG) provides a one-off $7,000 payment to all first home buyers, regardless of their income or the price of the property they buy. State Governments are responsible for administering the grant. To qualify for the scheme:
- This will be the first time your or your spouse/de facto will receive a grant under the First Home Owner Grant Act 20002 in any State or Territory.
- You and/or your spouse/de facto have not owned a residential property, jointly, separately, or with some other person, in any other State or Territory before 1 July 2000.
- You and /or your spouse/de facto have not owned on/after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory.
- Each Applicant is a natural person and not a company, trust or partnership.
- Each applicant must be at least 16 years of age.
- At least one applicant is a permanent resident or Australian Citizen for a minimum of 6 months.
- At least one applicant will occupy the home as their principal place of residence for a continuous period of six months commencing within 12 months of settlement or construction.
- You have entered a contract for the purchase of a home on/after 1 July 2000 or signed a contract to build a home on/after 1 July 2000.
- You are not buying a commercial building, holiday house, or renovating an existing building.
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| State Government Concessions |
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The states provide a concession on stamp duty for first home buyers. The size of this concession varies significantly from state to state. State Government concessions are set out briefly below. Please check out the Calculators page on our website which has a range of calculators that will enable you to calculate grants, stamp duty and more. To check for more detailed and up to date information for each site click here to find out how to contact your Office of State Revenue. We strongly recommend that you follow the links to their websites. |
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New South Wales |
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Concession for first home buyers: No stamp duty on properties valued up to $500,000. Concession phases out at $600,000. No stamp duty on land purchases to $450,000. |
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Australian Capital Territory |
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Concession for first home buyers: Concession is determined by your income and number of dependent children. If you are eligible and your property is less than $282,500 you pay only $20. The concession phases out at $386,000. |
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Queensland |
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Concession for first home buyers: Full stamp duty rebate if property is worth less than $250,000. Concession phases out at $500,000. No mortgage duties if property is worth less than $250,000. |
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Victoria |
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The Victorian government used to provide the following concessions for First Home Buyers:
From 1 May 2004 the Victorian Government introduced the First Home Bonus (FHB), which provides an additional $5,000 to any first home buyer who was eligible for the Federal Government's $7,000 First Home Owner Grant. The FHB replaced previous stamp duty concessions for families. Pensioners could choose between a stamp duty concession or the FHB. The FHB finished on 30 June 2005. No prizes for guessing what you get from the Victorian government now. |
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South Australia |
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Concession for first home buyers: Full stamp duty rebate if property is worth $80,000 or less. Phases out at $130,000. |
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Western Australia |
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Concession for first home buyers: No stamp duty payable on house worth up to $250,000, land worth up to $150,000. |
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Northern Territory |
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Concession for first home buyers: Concession on the first $125,000 of a home. Maximum benefit is $3,640.60. |
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Disclaimer
The information provided here is general only. It does not purport to be comprehensive or to provide financial advice. Additionally, while every effort has been made to ensure the accuracy of the information provided, governments and other associated entities can change guidelines quickly and without notice. Lenders can also change products and guidelines in the same manner.
You should not act on the basis of information contained on this site without obtaining qualified professional advice which can be tailored to your specific circumstances and needs. Therefore, before finalising any decision we strongly advise to exercise due diligence and consult with the appropriate professionals, particularly with regard to taxation and legal issues. |
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