The First Home Buyer Assistance Scheme (FHBAS) is undergoing some exciting changes, set to take effect from 1 July 2023. These changes aim to empower eligible first-home buyers with enhanced opportunities to step onto the property ladder and achieve their homeownership dreams. Let’s explore the details of these exciting developments:
1. Increased Transfer Duty Exemption Threshold
The transfer duty exemption threshold for both new and existing home purchases by eligible first-home buyers will witness a substantial increase from $650,000 to $800,000. This means that first-home buyers will be exempt from paying transfer duty for homes valued below $800,000.
2. Enhanced Concessional Rate
In addition to the increased exemption threshold, the concessional rate of transfer duty will also be expanded, rising from $800,000 to $1 million. This implies that first-home buyers purchasing homes between $800,000 and $1 million will benefit from a concessional rate of transfer duty.
3. Changes to First Home Buyer Choice
Under the new FHBAS guidelines, the First Home Buyer Choice (FHBC) will no longer be available. While this change may bring some adjustments, it is designed to streamline and enhance the overall effectiveness of the scheme.
4. Extended Residence Requirement
To further support first-home buyers, the residence requirement for various components of the FHBAS will increase from 6 months to 12 months. This extended duration applies to the FHBAS itself, the First Home Owner Grant, the deferral of transfer duty payment for off-the-plan transactions, and the exemptions for tenants of the Department of Housing and Aboriginal Housing Office. The extended residence requirement grants aspiring homeowners more time to save for their deposit, reducing financial stress and making homeownership more attainable.
These changes signify a positive shift in the landscape of homeownership, providing first-home buyers with increased affordability and a clearer path to get onto the property ladder. It’s an exciting time for those looking to fulfil their homeownership dreams and make a lasting investment in their future.
We’re Here to Help
We understand the importance of these changes and are committed to assisting first-home buyers in navigating the evolving landscape. Whether you need guidance on the application process, expert advice on financing options, or assistance in finding your ideal home, our dedicated team is here to support you.
Don’t miss out on the incredible opportunities offered by the revised FHBAS. Contact us today to learn more about how we can help turn your dreams of homeownership into a reality. Together, let’s embark on this exciting journey and create a strong foundation for a brighter future.
Maria Papa is a senior property and finance expert specialising in home loans, investment loans, self-employed loans, alt doc loans, car loans, personal loans, and loan protection. She has offices in Sydney, Melbourne, and Manila. If you have questions, you can call Maria at 0430 144 008 or email her at mpapa@maverickfinance.com.au.
Disclaimer: Your full financial situation will need to be reviewed prior to acceptance of any offer or product.