First Time Home Buyer
If you live in Australia and are a first time home buyer it take years to save up enough money for a down payment and other associated costs with buying a home. Luckily various Australian states offer some programs that can help the first time home buyer be able to afford a home a little sooner than they would be able to without the existence of such programs. Here is a look at some of the programs for first time home buyers offered by various Australian states and territories.
First Home Owners Grant
Various states in Australia offer what is known as the First Home Owners Grant. This grant is for first time home owners who purchase or build new homes. Each individual state sets criteria that must be followed in order for home purchases to be eligible for this grant. While the criteria differs from state to state generally these states set requirements such as:
- Must be an Australian or a permanent resident
- Must occupy the home within a set time period after the sales transaction is complete or building of a new home is commenced.
- Must live in the home for a set period of time
- There may be other criteria as well
Since these First Home Owners Grants are only for new homes first time home owners who purchase am existent home do not qualify. Depending on where you purchase a new home you could save as much as $10,000, $15,000 or ever $20,000 on the purchasing of a new home.
Stamp Duty Concessions
In addition to the First Home Owners Grant some Australian States and territories offer stamp duty concessions that allows some first time home owners to forgo or pay a lower stamp duty. These concessions are limited to properties valued under a specific amount which may vary depending on the individual state. Unlike the First Home Owners Grant not all homes have to be newly built and can include the purchasing of vacant land.
If you qualify for a stamp duty concession you could save thousands of dollars when purchasing a new home. Keep in mind that some Australian states do not give any stamp duty concessions to the first time home buyer and you may not be able to claim the concession if you already qualify for the First Home Owners Grant.
Abolishment of Insurance Duty on Lender’s Mortgage Insurance
As of July 1, 2017 Australia abolished the Insurance duty on Lender’s Mortgage insurance which now can save all home buyers including first time home buyers a couple of thousand dollars in mortgage insurance payments.
Know Which Programs You May be Eligible For
If you are considering buying a home in Australia then you need to which programs you may be eligible for in the area in which you are planning to purchase your home. Knowing what grants, concessions or other programs you may qualify for can allow you to purchase your own home sooner rather than later.