Purchasing your first home can be a daunting experience. It is a big decision with many factors contributing to the final outcome. The First Home Super Saver Scheme is one option to consider when embarking on this journey. We sat down with our in-house Finance Broker, Anthony Beauchamp, to find out more.
What is the First Home Super Saver (FHSS) Scheme?
Through the FHSS Scheme, first-home buyers may be able to use Australia’s superannuation system as a tax-effective way to save for part of their home deposit.
Who can use the scheme?
Suppose you’re 18 or over and are an eligible first-homer (which means you’ve never owned any Australian property before), you can withdraw voluntary super contributions you’ve made since 1 July 2017 to put towards a home deposit.
Under the FHSS Scheme, first-home buyers who have made voluntary super contributions up to $15,000 per financial year into their super, can withdraw these amounts (plus associated earnings/less tax) from their super fund to help with a deposit on their first home.
If you’re eligible, the maximum amount of contributions that can be withdrawn under the scheme is broadly $50,000 for individuals.
What are the benefits of using the FHSS Scheme?
Due to the favourable tax treatment generally available through super, the FHSS Scheme intends to help first-home buyers to grow their deposits more quickly.
What are the biggest challenges First Home Buyers face?
We often see two main challenges, the first being able to save enough for the required deposit and being realistic about the location of where you can afford to buy. Secondly, we have experienced with our clients exactly how essential lifestyle is. For those looking to purchase a property, getting the balance between paying back a loan and not changing your lifestyle can be a tricky balancing act.
How can HTA assist First Home Buyers in overcoming these challenges?
We look at the overall scenario for each client and understand what is important to them now and in the future to ensure we are putting a suitable solution in front of each client. Sometimes it’s as simple as creating a plan to save money for a first home or working out what purchase price is affordable.
We also help guide them through the challenges of purchasing a property, and if they cannot complete their purchase at the time, we can develop a clear plan to allow this to occur in the future.
If you would like to hear more about how HTA can help you purchase your first home, please contact us.
