Are you a First Home Buyer in Tasmania? Now is a good time. A number of incentives exist to help First Home Buyers enter the market.
Incentive reduces the costs of buying your first home, regardless of whether it’s an existing or brand new home. Some incentives can be combined and increase the benefit.
The list below includes First Home Buyer incentives that are specific to Tasmania and others that are nationwide and apply to Tasmania.
1. First Home Builders Boost
Tasmanian government offer of $20,000 if buying one of the following
- Brand new completed property where you will be the first occupant
- Buying land and building a new home
- Buying a property off the plan.
You must have signed a contract to buy the property or a builidng contract in the case of house and land by 30/06/2020. After 30/06/2020 the grant reduces to $10,000.
2. Stamp Duty concession for existing property
If you purchase an existing property by 30/06/2020 up to $400,000 the State Government will give you a 50% reduction on stamp duty. A potential saving of up to $6999.
3. First Home Loan Deposit Scheme
Part of a national incentive by the federal government. They provide a guarantee for the First Home Buyer who has a deposit of between 5 and 20%. The incentive allows a First Home Buyer to contribute as little as 5% of the purchase price as a deposit. The government provides a guarantee (not cash) for the difference between the borrowers deposit and a 20% deposit.
The benefit is the First Home Buyer doesn’t pay Lenders Mortgage Insurance saving you thousands of dollars.
The government has release an initial 10,000 places up to 30/6/2020.
In Tasmania the Scheme is applicable to property values up to $400,000 in metro locations and $300,000 elsewhere. Not a high limit because it’s targeted at First Home Buyers buying a ‘modest’ home.
4. Bank and Lender incentives
Apart from government schemes a number of banks and lenders have incentives for you the First Home Buyer.
- discounts of up to 33% on lenders mortgage insurance premiums
- cash payments for new loans
- Reduction of application fees and sometimes interest rates
5. Incentive combinations
Under certain circumstances incentives and offers can be combined ‘super sizing’ the benefit to you. Some examples;
- The $20,000 First Home Builders Boost can be combined with the First Home Loan Deposit Scheme. Saves on lenders mortgage insurance and you get $20,000
- Combine the 50% stamp duty concession with the First Home Loan Deposit Scheme
- The $20,000 First Home Builders Boost with particular bank’s lenders mortgage insurance concession and fee waivers
- Combine the First Home Loan Deposit Scheme with the state government 50% stamp duty concession.
The above incentives require you to be an eligible First Home Buyer and buy the property as your home not an investment property. Most incentives are available to Australian Citizens and permanent residents. The First Home Loan Deposit Scheme is for Australian Citizens only.
Preparing to buy you first home is a big step. Maximing the above offers and incentives can help you get there quicker and save you money. To make sure you get the right combination please call on 0410 520 398 or email email@example.com.