Now that Labour has been elected, there is a focus in the media about all the schemes and incentives available from the government to assist new and first homebuyers. In addition to the numerous existing schemes and grants, Labour are set to roll out their Help to Buy scheme on July 1, 2022.
Not only are there a lot of different schemes but there are different eligibility requirements for each. So its not surprising if you don't understand them or more importantly, understand what you are entitled to!
You can read on for more information on the Help to Buy Scheme or you can let us at Complete Home Brokers do the work for you and advise you what schemes or grants you could be eligible for!
We can help you take advantage of schemes you are entitled to and get into a home sooner!.
Help to Buy
Expected to roll out on 1 July 2022, Labour's new shared equity scheme, Help to Buy, is aimed at helping people get into the market sooner by contributing up to 40% of the purchase price of a new home and up to 30% of the purchase price for an existing home.
The government will hold that equity share in the property. If the property is sold the amount must be repaid to the government plus the same % of any capital growth (or loss) the property incurs.
The benefit of this scheme is you require less funds up from to purchase a home and with the equity contributed by the government, you will not be required to pay lenders mortgage insurance on the home loan.
Help to Buy will be open to just 10,000 Australians each financial year.
Eligibility Criteria:
- You must have saved at least 2% of the purchase price
- You must qualify for a loan to cover your % of the property purchase
- You must cover all purchasing costs including stamp duty, bank fees and legal fees
- You must not currently own property in Australia or overseas
- You must be purchasing a home to live in, not as an investment
- Individuals must earn less than $90,000 per year
- Couples must earn less than $120,000 per year combined
- If your income exceeds this for 2 consecutive years, you may be required to repay the government early.
- There are caps on the purchase price by region. In Victoria these caps are $850,000 for metro or regional centres, and $550,000 for the rest of the state
- You will be responsible for ongoing property costs like rates, strata and any other bills
This is what we currently know about this scheme and may be subject to change once Labour officially launches the scheme in July.
Can You Apply for Multiple Schemes or Grants?
Yes you can! As long as you are eligible for each.
Most of the assistance currently available are listed below, so you can see how many options there are but we can make it simple for you.
Chat to us today and we can see what you're eligible for!
- First Home Guarantee
- Family Home Guarantee
- Regional Home Guarantee
- First Home Super Saver Scheme
- Victorian Government First Home Owner's Grant
- Victorian Government Stamp Duty Concessions
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