Are you still trying to buy that first home? Support for first home buyers is changing.
The Labor government has recently announced increased first home buyer assistance thresholds and other changes to NSW housing grants and schemes to assist more people in gaining access to the different guarantee schemes.
Some of the changes include the following and will become effective on July 1, 2023;
- They are expanding the criteria for joint applications to friends, siblings, and other family members. These schemes allow first-home buyers to purchase a property with only a 5% deposit without paying Lenders' Mortgage Insurance (LMI).
- The family home guarantee has expanded from just single parents with dependants to include single guardians with dependants .
- People who have previously owned properties in Australia but not in the last ten years can join the scheme.
- The transfer duty exemption threshold for new and existing home purchases by eligible first home buyers will increase from $650,000 to $800,000 and the concessional rate will increase from $800,000 to $1 million.
- The government is also closing off access to First Home Buyer Choice (FHBC). From July 1 2023 there will be no option to choose between property tax and transfer duty on new purchases.
Additionally, the residence requirement will change for the following:
- First Home Buyers Assistance scheme
- First Home Owner grant
- Deferral of transfer duty payment for off the plan transactions
- Exemptions for tenants of the Department of Housing and Aboriginal Housing Office
For contracts entered into on or after 1 July 2023, purchasers under the above schemes, grants or exemptions must move into their homes within 12 months of settlement and live in the property for a continuous 12-month period to satisfy the residence requirement.
If you would like further advice on the NSW housing grants and schemes including those listed below:
- First Home Buyers Choice
- First Home Buyers Assistance Scheme
- First Home Owners Grant
please contact our office on (02) 6583 0400 or attend our First Home Buyers Seminar on July 13th. Registration is free of charge https://www.eventbrite.com.au/e/660121821137
