How the 2020-21 Budget can help you buy a home sooner

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Great news for first home buyers! The Budget brings plenty to the table to help you buy a place of your own sooner.

Tax cuts - more cash to grow a deposit

Who doesn’t love a tax cut? And some extra cash is especially handy when you’re saving for a first home.

The latest Budget is bringing forward tax cuts that could put valuable extra cash in your pocket. It can be a financial helping hand to fast-track your deposit.

The 19% tax threshold will be lifted from $37,000 to $45,000, and the 32.5% threshold will rise from $90,000 to $120,000. That’s expected to see over 7 million Australians pocket tax savings of $2,000 or more this year. Even better, the tax cuts will be backdated to 1 July this year.

Not sure how to start saving for a deposit? Your Aussie Broker can provide some simple tips to get your deposit growing.

10,000 extra places to buy with a 5% deposit

The First Home Loan Deposit Scheme (FHLDS) could be the game changer that lets you fast-track your way into the property market.

The scheme lets you buy a home with just 5% deposit – and as the government guarantees your loan for you, there’s no need to pay lenders mortgage insurance. That’s a big saving!

The exciting news from the Budget is that the number of places available through the FHLDS has doubled from 10,000 to 20,000 but only until 30 June 2021.

This is a real plus for first home buyers because this year’s quota of 10,000 places has already been filled. So, it could be a great opportunity to secure your spot for a 5% deposit home loan.

The extra 10,000 places will only be available if you build or buy a new home. As an extra sweetener, the property price limits for the FHLDS have been lifted. Check out the new price limits in your city – it could open up a wider selection of homes for you to choose from.

New price limits for First Home Loan Deposit Scheme

State

Capital city and regional centres

Rest of state

NSW

$950,000

$600,000

VIC

$850,000

$550,000

QLD

$650,000

$500,000

SA

$550,000

$400,000

WA

$550,000

$400,000

TAS

$550,000

$400,000

NT

$550,000

N/A

ACT

$600,000

N/A

Get in touch with your Aussie Broker to know more about how the FHLDS works, and whether you may be eligible.

No extension to $25,000 HomeBuilder grant

The Budget didn’t extend the end date for the $25,000 HomeBuilder Grant – available to new home builders and renovators, beyond 31 December 2020.

Other first home buyer incentives are still available from state governments. But if you’re hoping to land that $25,000 HomeBuilder cash, you need to act fast – the grant ends on 31 December.

Your local Aussie Broker can offer expert guidance on how the grant works.

Here’s to the next 12 months seeing you tick off your property goals!

Notsure how to start planning for your first  home? It could be time to talk with an Aussie Broker. Book a free appointment today.

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