Government Schemes to help First Home Buyers in QLD

Buying your first home in QLD can be difficult and expensive in 2022. In an effort to get more first home buyers into the market, the Government has a number of schemes available to first home buyers: ·

Home Guarantee Scheme: the Government will put a ‘guarantee’ on your home loan, which enables First Home Buyers to purchase with a 5% deposit and no Lender’s Mortgage Insurance. It also allows single parents buy with just a 2% deposit whether or not they are a first home buyer.

Stamp duty exemption: when purchasing for under $500,000, there is no stamp duty payable. There is a partial discount on stamp duty when paying between $500,000 and $550,000.

First Home Owner’s Grant: $15,000 payable to first home buyers when purchasing or building a new home.

First Home Super Saver Scheme: a tax-efficient way to save for a deposit using pre-tax Superannuation payments.

How to make the most out of the schemes

If you’re purchasing for under $500,000 and meet the other criteria:

· Over 18 years of age

· Australian Citizen

· Have saved a 5% deposit yourself

· Fall within the necessary income brackets (each scheme has a different thereshold).

Then you can buy with just a 5% deposit, and pay no stamp duty or LMI.

That means the total cost of purchasing a house using these schemes would be:

· 5% deposit

· $0 Stamp Duty

· $3,000 to cover other Government costs, Solicitor fees and application fees.

Which makes a $500,000 purchase accessible with just $28,000 in savings.

If you don’t have the deposit ready

If you don’t already have the deposit, it’s strongly recommended you research the First Home Super Saver Scheme as a first step and set it up if you’re able.

This will help you save a higher deposit quicker, and can be used as your ‘funds to complete’ when you are ready to apply for a home loan. If you have credit cards or multiple debts, it may be worth speaking to Personal Loan Brokers to see if you can consolidate the debts – this may mean you can save more and put you in a better financials position when you apply for a home loan.

When you’re ready to buy

You can find a Mortgage Broker to assist you in utilizing your Super Saver Scheme, and applying for the FHOG and/or Home Guarantee Scheme. They can assess your affordability upfront and assist you in applying for a home loan.

You can reserve a spot for the Home Guarantee Scheme when applying for a pre-approval.

The timeframes for getting your home loan are:

· Initial pre-assessment: 24 – 48 hours generally.

· Pre-approval from the bank: 2 days – 2 weeks, depending on the bank.

· Final approval: 2 days – 2 weeks, depending on the bank.

· Settlement: 2 weeks after final approval.

Other professionals to assist you

When trying to purchase your house, you should also research and choose a:

· Solicitor/Conveyancer: they can review the contract for you, assist in getting the appropriate stamp duty exemptions, and complete the settlement for you.

· Building & Pest professional: you’ll want someone to inspect the property and provide you a Building & Pest report.

· Real Estate Agent: the selling Agent should be able to provide guidance surrounding the whole process.

This article should be used as a guide only – but hopefully points you in the right direction of which schemes you s