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