Are you a first-home buyer? It’s no secret that the housing market is tough right now. Interest rates are skyrocketing and don’t appear to be stopping any time soon. This can be very daunting, but it doesn’t have to be if you use the FHLDS, government grants, and access to $0 stamp duty.
What Is The First Home Loan Deposit Scheme
First Home Loan Deposit Scheme (FHLDS): The FHLDS is a government-incentivized scheme to help first-time homebuyers purchase their first property. It essentially allows eligible borrowers to get into the market with a smaller deposit than would otherwise be required. It also includes access to a range of other benefits such as lower interest rates, exemptions from up-front fees and charges.
What does that mean exactly?
Generally speaking, the old fashion way of buying a house would mean that you need to come up with a 20% deposit to avoid paying LMI. However in today’s market, if you rent and are trying to save for a home deposit its nearly impossible to save for a 20% deposit which is why the government implemented the FHLDS this means that you only need to save 5% and the government will come to the party with the extra 15% to avoid you having to pay LMI. Sounds too good to be true doesn’t it trust me I didn’t believe it either until I did my first one for my first client and realized how important it is for first-home buyers to be able to buy in today’s market
Stamp duty concessions
If you do a google search on stamp duty concessions in Victoria, you will find the state revenue office (SRO) defines concessions like this:
The first home buyer duty exemption or concession may be available if:
You enter into a contract of sale to buy your first home on or after 1 July 2017.
Your home has a dutiable value of:
$600,000 or less to receive the first home buyer duty exemption,
$600,001 to $750,000 to receive the first home buyer duty concession.
What this means is that if you keep your first home to a maximum of $600,000 you will pay $0 stamp duty, saving you a whopping $31,070.
How would it look to use all of these to your advantage?
To put it simply if you buy your first home for $600,000 house you would only require a 5% deposit which is $30,000 plus costs (like conveyancing and government transfer fees) so we generally say a $35,000 deposit is the only thing that is needed to purchase your own home right now even in this crazy market.
So what are you waiting for? Getting in touch with Loan Location is as easy as pressing the button below and starting your simple journey to owning your first home today.
