Five reasons for First Home Buyers to get excited!

Homeownership can be a wonderful and achievable dream for first-time buyers with the right guidance and support. There are several government incentives that can help make the process more manageable, and a trusted broker can help navigate the complexities of home financing. Here are 5 of the most popular options:

1. First Home Owner Grant: This is a one-time grant of $10,000 for eligible first-time homebuyers in New South Wales to purchase a new, off-the-plan, or substantially renovated property. There is a price cap of $600K for new buildings and $750K for vacant land and build contracts.
2. First Home Buyers Guarantee and Regional First Home Buyers Guarantee: These schemes act as a guarantee from the government to waive the massive LMI fees. Under this scheme you will be able to borrow up to 95% of the property’s value without being charged LMI. There is a price cap that applies, depending on your area; $900,000 for cities and major regional centres and $750,000 for everywhere else. There are two schemes, and this depends on where you purchase. Along with saving on LMI fees, you are also assessed on an 80% loan to value ratio which can have a 1-2% lower interest rate compared to standard 95% lends.
3. First Home Buyer Assistance Scheme: Provides a full exemption on stamp duty for properties under $650K or $350K for vacant land. This can cut the upfront cost of a home by up to $15K in some circumstances! Above these caps you also have a ‘pro-rata’ concession that’s applied to properties up to the value of $800K and land of $450K.
4. Family Home Guarantee: specifically catering to single parents with one or more dependants. Unlike all the other options on this list, the family home guarantee can be applied for if you have owned property in the past. The Guarantee has the same benefits as the above “regional and first home guarantees” but with a maximum of 98% lending (although 5% genuine savings are still required at all lenders as stamp duty will need to be paid in full). 
5. First Home Buyer Choice: This is a trial program for first home buyers that allows them to pay stamp duty on a yearly basis instead of a one-off lump sum upfront. This can help reduce the short-term financial burden for first-time home buyers. First homeowners can access this scheme on house values of up to $1.5M! This scheme however is not suited for those who will hold their property for a long time as property tax will be charged every year you own the property.

It is important to note that there is a lot of information to consider when taking advantage of these offers. It is recommended to reach out to a broker like Wilson Financial to help navigate the eligibility criteria and ensure you take full advantage of these programs.
Buying your first home can be an exciting and achievable dream with the help of government incentives and the support of a trusted broker.