RESIDENTIAL PURCHASE & FIRST HOME BUYER INCENTIVES VICTORIA

Stamp duty waiver for residential property transactions of up to $1 million

First Home Loan Deposit Scheme – 5% deposit

HomeBuilder Grant – $15,000

First Home Buyer Grant

First Home Buyer stamp duty concession 

By National Lending Group

Stamp duty waiver for residential property transactions of up to $1 million
The Victorian Government has announced a land transfer (stamp) duty waiver for purchases of Victorian residential property with a dutiable value of up to $1 million.

  • For new residential properties, a 50% land transfer duty waiver of the duty otherwise payable applies.
  • For existing residential properties, a 25% land transfer duty waiver of the duty otherwise payable applies.
  • For vacant residential land, a 25% land transfer duty waiver of the duty otherwise payable applies.

The waiver applies after all other eligible benefits, such as the first home buyer duty concession, the principal place of residence concession and the pensioner concession, have been taken into account. However, the waiver does not apply to foreign purchaser additional duty.

More information including eligibility crtiera on the stamp duty waiver can be found here.

First Home Loan Deposit Scheme – 5% deposit

The First Home Loan Deposit Scheme (FHLDS) is an Australian  Government initiative to support eligible first home buyers to purchase their first home sooner.

Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance.

Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because the National Housing Finance and Investment Corporation (NHFIC) guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.
All applications for the FHLDS need to be made directly with one of the scheme’s participating lenders or through a mortgage broker and your ability to secure a Scheme place when doing so will depend on
whether a place is available at that time.

Full eligibility criteria for the First Home Loan Deposit Scheme can be found here.

HomeBuilder Grant – $15,000
Commencing on the 4t h of June 2020 the HomeBuilder Grant provides eligible owner-occupiers (including first home buyers) with a grant of $15,000 (between 01/01/2021 > 31/03/2021) to build a new home, substantially renovate an existing home or buy an off-the plan home/new home where the contract is signed between the dates highlighted above and construction commences within 6 months of the contracts being signed.
Applications can be submitted via an online portal no later than 14/04/2021. The SRO will advise whether the application has been approved or declined and generally takes around 15 business days of a
complete application being received.

Full HomeBuilder Grant guidelines can be found here.

First Home Buyer Grant (metropolitan) – $10,000
When buying or building a new home, buyers may be eligible for the $10,000 FHOG if they signed a contract on or after 1 july 2013.

First Home Buyer Grant (regional) – $20,000
The regional FHBG is a $20,000 payment for first home buyers who sign a contract to buy or build their new home, where the contract price (or cost of construction for an owner builder) is $750,000 or less, in regional victoria. 

FHBG eligibility criteria – metropolitan & regional

  • Property must be less than five years old. It can be a house, townhouse, apartment, unit or similar.
  • Must be valued at $750,000 or less and be the first sale of the property as a residential premises
  • The buyer (or at least one applicant) must be an Australian citizen or permanent resident
  • The buyer (or at least one applicant) must occupy the home as their PPR for at least 12 months, commencing within the 12 months of settlement or completion of construction.
  • The buyer or their partner have NOT,
    ○ Received the FHOG in Australia
    ○ Owned a home or other residential property in Australia, either jointly or separately, prior to 1 July 2000.
    ○ Lived in a home in Australia which either of the buyers have owned or part-owned on or after 1 July 2000, for a continuous period of at least 6 months
    ○ The above criteria applies even if the buyers spouse/partner is not an applicant with the buyer for the FHOG

First Home Buyer stamp duty concession – $31,070 > $0.00
If buyers enter into a contract or buy their first home after 1 July 2017, they may be eligible for a stamp duty exemption or concession.
The first home buyer duty exemption or concession may be available if,

  • The purchased home has a dutiable value of:
    ○ $600,000 or less to receive the first home buyer duty exemption
    ○ $600,001 to $750,000 to receive the first home buyer duty concession
  • Unlike the FHBG, it doesn’t matter whether you buy a new or established home
  • All purchasers of the property meet the First Home Buyer Grant (metropolitan) eligibility criteria.

Click here for stamp duty calculator
Note that the above is an overview only and should not be relied upon when considering your eligibility. Policies change without notice and it is important to conduct your own due diligence before applying.

For more information on FHBG and concessions click here to visit the State Revenue Office of Victoria for full eligibility requirements or call them on 13 21 61. 

Reference: 
National Lending Group 2020, Residential Purchase & First Home Buyer Incentives Victoria. 

Disclaimer

Richard E Suttie Pty. Ltd. Trading as Suttie Financial Group.

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