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14 Nov 2019

Australian Residential Property: First Home Buyers

The First Home Loan Deposit Scheme has been legislated by the Federal Government and will commence on 1st January 2020.

It is designed to help Australian citizen over the age of 18 buy their first home with a minimum 5% deposit and not pay lenders mortgage insurance which is normally charged if the deposit is less than 20%.

In NSW, specifically Sydney it is capped at $700,000 purchase price.

The NSW Government will also waive (exempt) the stamp duty in full under the First Home Buyer Assistance Scheme if the purchase price is less than $650,000.

But wait, there is more.

If you’re a first home buyer and you’re buying a new home in NSW then you may also qualify for a $10,000 grant under the NSW Government First Home Owner Grant (New Homes) Scheme.

So, from 1st January 2020 an Australian citizen over the age of 18 can purchase a new $650,000 first home in Sydney with $32,500 deposit, pay no lenders mortgage insurance, pay no stamp duty and receive a $10,000 grant.

Yes they would have a $617,500 mortgage which at 3.0% per annum principal and interest would cost $2,600 per month (or $1,544 per month interest only) but they would stop paying rent.

This will present an opportunity for some.


WARNING, this does not constitute Personal Advice and to discuss if this is appropriate for your given circumstances please do not hesitate to contact us directly.


Click for Federal Government Scheme.

Click for NSW Government Scheme.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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