When it comes to deposits, bigger is better.
It’s a no-brainer that your first home is likely one of the biggest purchases you’ll ever make, so you want to make sure you do it right. You’ve worked hard to save your money, so you’ll want to stretch it as far as possible. Luckily, there’s a range of options out there to help you both grow your deposit and make the most of what you have.
As a first homebuyer, saving up as much as possible will benefit you both now and in the future. With a larger deposit, you can;
The good news is, there is a generous selection of financial support options available to first home buyers to boost your deposit and savings.
You probably know that super is money set aside for your retirement. But in 2017, the Federal Government introduced the First Home Super Saver Scheme (FHSS), which allows first homebuyers to use superannuation for a first home deposit. As a first homebuyer, you can make voluntary super contributions of up to $15,000 per year (and $30,000 in total) to put towards the purchase of first home. When you’re ready to buy, you can withdraw these contributions — plus the returns the government estimates you have earned — and use them for your deposit.
One of the advantages of using super to buy your first home is that your contributions are taxed at a lower rate. Essentially, more of your money goes towards growing your deposit.
A deposit bond, sometimes referred to as a deposit guarantee, is an insurance policy that is used in place of the cash deposit required between signing the contract of sale and settlement.
Just like a cash deposit, a deposit bond guarantees your commitment to an unconditional contract of sale.
The main benefit of using a deposit bond, is that you can defer paying the deposit until settlement. Your Aussie Broker can help with more information and assess whether a deposit bond might help you to make an offer on your chosen property.
Most states and territories have schemes available to first homebuyers to help them save money on stamp duty. You can have a look at our state-by-state breakdown of stamp duty savings or use Aussie’s Stamp Duty Calculator to see how first homebuyer incentives can help you save on stamp duty.