WHICH SCHEME WORKS FOR YOU?
There are so many loans out there as well as all the government incentives to help you get your own home sooner. It's hard to find the ‘right’ loan for you.
The first question is are you going to live in this home? If the answer is no, you may only be eligible for certain schemes as others are not available for investment property purchases.
A good place to start is here https://www.nhfic.gov.au/
Are you an Australian Citizen? If not, these schemes will not apply to you. They are strictly for Australian Citizens only. However, if you are not a citizen, you may still be eligible for stamp duty discounts and first homeowners grant if you are building your first home or buying a newly built home.
If you are an Australian Citizen you must also meet all the other criteria about what you are earning, and how much you are buying for. You also need to have % genuine savings and enough money to cover stamp duty.
You also need to have submitted your tax return as you need your tax notice of assessment for the 2022 financial year.
There is a similar scheme for single parents but it does not have to be your first home, and you need 2% plus stamp duty which is a great incentive.
Of course, you need to be in a position to pay the loan back, and we can help you with working out how various lenders will look at your income.
Then you need to decide if you are building a home, buying a new home, or buying an established home. If you are building or buying a home that has not been lived in and it’s your first home you may be eligible for a first home owner’s grant. The requirements on this vary from state to state and the best place to find out more is the state revenue office in your state (hop on to the First HomeBuyers Club for more information on this).
https://www.cloverfinancial.com.au/first-home-buyers-club
You will need to make a contribution to any property purchase and with the Super Saver Scheme, you can make additional contributions to super and then take out those additional contributions. There is a bit you need to be aware of here and as there are tax implications we would recommend you examine the suitability of this for your own circumstances. You can check that out here https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/
Victorian Government (and soon to be National) Shared equity scheme. This means the government has an interest in your property for up to 25% or 35% for Aboriginal and Torres Strait Islanders. If the value of your home increases, so does the government interest in your property. You can find out more here https://www.sro.vic.gov.au/homebuyer
If you are outside the eligibility criteria for these schemes, you may still be able to buy a home with a little help from your parents. There are a few lenders offering a family guarantee where you borrow up to 110% of the property value and use your parents’ home as security. Again, check out the First Home Buyers Club for more information on this.
When we are looking for a loan for you, we will be looking at your eligibility for the various schemes that exist. Not all lenders offer them so your eligibility and loan structure will determine your choice of lender and the loans they offer with these schemes.
Phoebe x