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First Home Buyers Loans On the Rise, The Time is Now!

Mar 01, 2024

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Certainly, there are lots of Real Estate market changes, and with investors offloading their properties the time for first homeowners is here!

There's been a significant increase in first-home buyer activity over the past months, based on the latest data from the Australian Bureau of Statistics.

There were a total of 9,491 owner-occupier first-home buyer mortgages issued across Australia in December 2023, which was 12.9% higher than the year before.

The are lots of options and incentives for those who are trying to get into their first home, we have;

Victorian Homebuyer Fund
the Victorian Government will use the Victorian Homebuyer Fund to make a financial contribution to the purchase price in exchange for an equivalent share in the property. For example, if you have a 5%* deposit together, the Victorian Government will provide a contribution of up to 25%. That means that you’ll only apply for a mortgage equal to 70% of the value.

First Home Owner Grant
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. Your first new home can be a house, townhouse, apartment, unit or similar. A new home can be a home that has been substantially renovated, or a home built to replace demolished premises.

Stamp Duty Waiver
Both the duty exemption and the 50% duty reduction are available to first-home buyers when they purchase a new or established property in Victoria with a dutiable value of up to $600,000. The duty concession applies where the dutiable value is more than $600,000 but not more than $750,000. Vacant land can also attract the exemption or concession if you are buying it to build your home.

First Home Guarantee
The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative. It is administered by Housing Australia on behalf of the Australian Government.
Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance.
For the FHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan.

First Home Super Saver Scheme (FHSS)
The FHSS scheme allows you to save money for your first home in your super fund.

The scheme allows you to make voluntary contributions (both before-tax concessional and after-tax non-concessional) into your super fund to save for your first home. If you meet the eligibility requirements, you can have these voluntary contributions released, up to a limit, (along with associated earnings) to help you purchase your first home.

Taking this into consideration and now knowing that we might start seeing some interest rate reductions coming in the next couple of months, the perfect time to buy your first home is now.

Make sure you contact your broker or financial advisor to find out what grants and benefits you can take advantage of.

If you have any questions or want to know more about market conditions specific to your desired area, reach out to your trusted Real Estate Agent for more information.


Written by Elli Blanco