First Home Loan Deposit Scheme Exclusive Access!
Are you a First Home Buyer? We have distilled all the key information you need to know about the new home loan scheme and what finance options are available. Our in-house finance team, MyChoice Home Loans, are ready to answer your questions and also have exclusive access to the First Home Loan Deposit Scheme.
What the First Home Loan Deposit Scheme means for first home buyers
The new first home loan deposit scheme came into place from the start of 2020. Eligible first home buyers on low and middle income earners will have their 5 per cent deposit topped up with a government guarantee for 15 per cent of the loan. The scheme aims to support up to 10,000 loans each financial year, starting from 1 January 2020.
Who is eligible?
There are several criteria used to determine your eligibility as a first home buyer who can access the scheme. You must be:
- Over 18 years old
- An Australian citizen
- Able to provide a deposit of at least 5% of the property value
- Intending to buy a home as an owner-occupier
- A genuine first home buyer (not holding interest in other property)
- Earning a taxable income of less than $125,000 for singles and $200,000 combined for couples
The scheme only covers residential properties that are under the purchase price cap for the location you are wanting to buy.
Purchase price caps
The scheme is aimed at helping first home buyers with the purchase of a modest first home. To ensure this, there are price thresholds in place for properties depending on the state, city or regional area it’s in. So across our build areas the purchase price caps are:
| Region | Price Cap ($AUD) |
| NSW - capital city | $700,000 |
| NSW - regional centre (Newcastle and Lake Macquarie) | $700,000 |
| NSW – regional centre (Illawarra) | $700,000 |
| NSW – other | $450,000 |
| ACT | $500,000 |
Capital city price caps will apply to large regional centres with a population over 250,000 such as Newcastle, Lake Macquarie and Illawarra. This is to recognise that dwellings in large regional centres are usually much more expensive than other regional areas.
Other grants and concessions to consider
There may be other grants and concessions you are eligible for including the First Home Owner Grant (FHOG). Eligibility requirements vary, so visit your state’s office of revenue website to find out that exact eligibility requirements.
- $10,000 FHOG for properties under $600,000 or land and property less than $750,000.
- No transfer duty on new homes less than $650,000 and concessions for new homes valued between $650,000 and $800,000.
- No duty for a vacant block of residential land valued at up to $350,000
- Concessions for vacant land valued between $350,000 and $450,000.
- $7,000 FHOG for properties under $750,000.
- No duty for buyers earning a combined income of between $160,000 (no dependents) to $176,650 (5 or more dependents).
MyChoice Home Loans
At McDonald Jones, we understand that finding the right loan for your new build can be challenging. The hassle of finding lenders and dealing with negotiations and the endless paperwork can be frustrating and overwhelming in addition to arranging the new construction of your home. That’s why we offer a holistic package with MyChoice Home Loans, our in-house finance team, which eliminates the stress of finding your own finance and makes achieving your dream home easier and more enjoyable.
Plus MyChoice Homes Loans are one of a limited number of lenders who have exclusive access to the First Home Loan Deposit Scheme, so not only are they specialists in construction loans they can help First Home Buyers make the most of the current Government support available.
Get in touch with us today
We are a leader in home building throughout NSW and ACT. Our new home designs are affordable, contemporary and perfect for the modern family and homeowner.
If you want to build a new home or find out more about our finance options, contact us today on 1300 555 382.