I’m purchasing a property. How does the 2021 Federal Budget help me?

Published 13 May 2021

With the local property market booming, purchasing a property, particularly if it’s somewhere you are hoping to live, can seem daunting. On 11 May 2021, the Treasurer announced the 2021 Federal Budget. There has been a continuation of some schemes and introduction of new schemes. These should assist people buying in the current market.

New Home Guarantee

This initiative is for first home buyers who are building or purchasing a new property but only have a deposit of 5%. An extra 10,000 places will now be available to applicants during the 2021-2022 financial year.

Family Home Guarantee

This is new initiative being introduced for separated parents with dependent children. The purpose of the scheme is to assist people re-establishing themselves post separation. Applicants will be able to build a new home or purchase an existing dwelling with a deposit as little as 2%, with the government guaranteeing the remaining 18%. This means that applicants will not have to take out Lenders Mortgage Insurance. The scheme will be available to 10,000 applicants over a period of four years.

First Home Super Saver

This scheme was initially introduced back in 2017 but is now being extended so that prospective first home buyers can access as much as $50,000.00 of voluntary contributions from their superannuation.

HomeBuilder Scheme

This provides eligible owner occupiers with up to $25,000.00 to build a new residence or substantially renovate their existing residence.

The scheme was initially required applicants to commence construction within six months but this is now being extended to eighteen months for all existing applicants.