Flexibility for first homebuyers

Font size :

Home ownership will soon be easier for first-time buyers, with the government announcing changes to the First Home Saver (FHS) Account scheme this week. The Minister for Housing Tanya Plibersek and Treasurer Wayne Swan revealed plans to increase flexibility for FHS Account-holders trying to save for their first home. “We’re improving the FHS Accounts to help address the housing affordability challenge faced by so many young Australians,” the Treasurer said in his Budget speech.

Currently, an FHS Account must be held for four financial years before the account-holder can access their savings to buy a dwelling. If a home is bought prior to the end of the four-year period, the account is closed and the balance is transferred to a superannuation fund. However, under changes announced as part of the 2010/11 Budget, the four-year period will remain, but an account-holder will have the opportunity to buy a home at any time, with the funds simply being transferred into an approved mortgage at the end of the qualifying timeframe. The government will make draft amendments available for consultation in the coming months, with the changes coming into effect following Royal Assent of the legislation.

The various FHS Account concessions already in operation will remain. The government will continue to provide 17% on the first $5,000 (indexed) deposited by an individual account-holder each year. Earnings will still be taxed at 15% and withdrawals will remain tax-free when they’re used to purchase a home. Couples also have the opportunity to combine their individual accounts and purchase a home together. The account-holder still can’t make additional contributions beyond the $75,000 (indexed) account limit, but the funds will continue to earn interest and outstanding government contributions after that time.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords