7 reasons why 2023 is a great year for first home buyers
If you’re dreaming of buying your first home, the turn of this new decade might just be your moment. With new schemes to help with the deposit, plus attractive interest rates and some great offers, there’s never been a better time to buy.
Here are seven reasons to kick-start your house hunting in 2020.
- There’s a new scheme in town
As of 1 January 2020, a new federal first home loan deposit scheme lets approved first home buyers take out a mortgage by providing just a 5% deposit without paying lenders mortgage insurance (LMI). Most banks usually ask for a 20% deposit and charge LMI for deposits less than that. The new scheme means approved first home buyers can access a mortgage with less money up front and no LMI.
“Based on average house prices in the capital cities, first home buyers could potentially save thousands in lenders mortgage insurance fees,” says Simon Basheer, Lendlease Residential General Manager of Sales.
- Banks are offering attractive interest rates
The Reserve Bank of Australia cut official interest rates yet again to a record-low 0.75% in October 2019. This means banks and other financial institutions are now offering very attractive home loan rates.
- Granting you the power to buy
A First Home Owner Grant can be worth up to $20,000, depending on which state you live in. The amount offered and requirements for those buying or building a new home or purchasing an existing home vary between states and territories, so check how much you might be eligible for.
- Full or partial exemptions from duty
A stamp duty exemption may be available for first time home buyers. The exemption can lower the tax you pay when purchasing your property. Depending on purchase price, you can get partial or full exemption on stamp duty when you buy your first home, leaving you more money to spend on making your first place feel like home.
- Changes to the ‘stress test’
The Australian Prudential Regulation Authority (APRA) has changed the 'stress test' banks are required to apply to see if the customers can repay residential home loans if the interest rates go up.
The changes to the ‘stress test’ could allow more Australians to borrow the amount for which they are hoping.
- Extra incentives
A competitive market for builders and sellers is good for first time home buyers, with developers offering deals that can save you money on your first home.
“Lendlease is offering incentives on a range of land lots around Australia through February and March 2020,” Basheer says. Combine these with builder offers, and watch the savings add up.
- Masterful new masterplans
When you become a first home buyer, you also buy in to your first community. “We take a holistic approach to master planning,” Basheer says. “We focus on lifestyle and community benefits that provide a strong sense of belonging for new residents.” From schools and town centres to shops, cafes and restaurants, building your first home comes with much more than new walls and a roof.
With so many great opportunities for savings and a range of exciting communities around the country, there’s no time like the present to buy or build your first home.