For the first time, new home buyers can pay a fraction of the deposit amount – or none at all – with no penalties, and save up to $50,000 on their loan, using the toolkit of first home owner grants available in Queensland.
Having a small deposit used to mean hefty bank fees or missing out on the home you wanted.
Being a first home buyer meant being lowest rung on the property market ladder.
That’s no longer true, with new government incentives favouring new home owners – and it’s even better for buyers, especially brand new builds.
Here’s what’s up for grabs:
| First Home Buyers Grant | $15,000 |
| First HomeBuilders Grant | $25,000 |
| First Home Loan Deposit Scheme | Savings on Lenders Mortgage Insurance of approx. $10K-$15K |
| Stamp Duty Rebate | Up to $8,750 |
| Potential savings: | Approx $50,000 |
That’s a lot of money on the table for first home buyers right now. In fact, considering the current low interest rates, it’s a once-in-a-generation unprecedented opportunity to buy – particularly if you purchase a new build, which unlocks the $25,000 HomeBuilders grant.
To put the toolkit together, let’s take a look at each grant and how they work for you.
Grant #1: The $15,000 First Home Buyers Grant
The national First Home Buyers Grant is a government scheme that was rolled out in 2010.
Each state and territory has specific eligibility rules, but Queensland is straightforward: the $15,000 cash boost is granted to first home owners purchasing properties valued at less than $750,000.
Here’s your two biggest wins:
- The First Home Buyers Grant can be used for your deposit.
That’s a massive boost, especially when you combine it with the next two available grants (more on those in a minute).- The grant isn’t income tested. As long as you meet the other basic requirements (like being over 18, never owning a property before, and being an Australian citizen or permanent resident), the grant is yours.
Grant #2: The $25,000 HomeBuilders Grant
The HomeBuilders Grant is a federal government cash grant of $25,000 toward new home builds and major renovations. It’s designed to help stimulate trade work after the 2020 coronavirus setbacks.The HomeBuilders Grant has eligibility requirements for new home owners in Queensland:
- Your income must be less than $125,000 per year ($200,000 for a couple)
- The cost of the new build must be less than $750,000
- The grant offer expires December 31, 2020 and construction needs to start within three months
In Queensland, new home owners can also apply for the Stamp Duty Concession on a home priced under $550,000; an extra saving of up to $8,750.
Grant #3: The First Home Loan Deposit Scheme
New data from the Housing Industry Association shows the biggest problem for first home buyers is not paying off the mortgage – it’s pulling together the deposit.
That’s where the First Home Loan Deposit Scheme (FHLDS) steps in and serves up another win for brand new buyers:
- Launched in January 2020, the FHLDS allows you to put up a lower deposit – as low as 5% – without the usual tens of thousands of dollars in extra loan costs.
- In Queensland, the scheme is available for first home owners purchasing a new or existing home for less than $475,000 (or $400,000 in regional Qld).
To explain, let’s use Steve and Sarah as our example.
Our couple want to buy a $475,000 home in Ipswich, Queensland.
Typically, they would need to save a 20% deposit of $95,000. That’s a lot for anyone to save.
If they pay down a smaller deposit, they would have to pay the lender’s ‘insurance policy’ called Lenders Mortgage Insurance, which would add up to approximately $15,000 extra on their loan.
The First Home Loan Deposit Scheme is a government-backed financial guarantee for up to 15% of the deposit. So, in the case of Steve and Sarah, they would only need around $24,000 deposit, and they can borrow the remaining 95% loan without inciting LMI.
And remember, they can use the $15,000 Fist Home Buyers Grant toward their deposit!
Currently, you do need to apply for the FHLDS, but we’ll help you through the application process so you tick all the right boxes.
How the toolkit works together
So, if you’re a first home owner in Queensland, and in the market for a new build, you have all these grants – up to $50,000 in savings – ready and waiting to help.
The First Home Buyers Grant and the HomeBuilders Grant are a cash injection of $35,000.
The First Home Loan Deposit Scheme isn’t cash, but it’ll save you between $10,000 to $15,000 in loan charges and make the loan more serviceable, which looks good to your lender.
And, finally, you can get into your new home sooner – rather than saving a deposit for years while the market keeps getting ahead of you – because you only need a fraction of the required deposit.
Don’t miss out
The HomeBuilders grant and the FHLDS have expiry dates and limited numbers. Our Insignia Homes team can guide you through the entire process from start to finish, from finding your first new home in Queensland through to settlement, and all the grant applications in between.
