If you are looking to purchase your first home but are struggling to save up enough money for a deposit, you might want to check out the Australian Government’s First home super saver (FHSS) scheme.
The First Home Super Saver Scheme (FHSSS) was introduced in July 2017 by the Australian Government and the Australian Taxation Office as a way to improve housing affordability and help first home buyers get into Australia’s expensive property market.
The scheme allows borrowers to save money and grow their home deposit using their superannuation fund. Borrowers will benefit from a lower rate of tax charged on their superannuation account.
The FHSS scheme requires you to make voluntary contributions into your super fund account. This is done by either making manual personal contributions or you may be able to enter into a salary sacrifice arrangement with your employer.
It’s important to note that not all employers provide these arrangements, so you may have to make the contributions yourself or opt for another saving method.
The main benefit to the FHSS scheme is the tax saving that can be made, as super contributions are charged at a lower tax rate than most income levels.
Related: Our complete guide to the First Home Owner Grant
The main eligibility requirement to partake in the First Home Super Saver Scheme is to have never owned property in Australia. You must also be at least 18 years old.
In some cases of severe financial hardship, the ATO may consider granting those who have previously owned property access to the scheme. To be eligible for this, you should have lost all property because of events such as:
Calculate your borrowing power based on your income.
The benefits of the First Home Super Saver Scheme include:
See how much you might need to pay if you're low on a deposit.
There are a number of First Home Super Saver Scheme restrictions you should be aware of:
If eligible, you can benefit greatly by using the FHSS scheme. Find out more by speaking to one of our Home Loan Specialists today.
We search over 25 major Australian lenders in seconds.
We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here.
The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.
Find out how much it's worth with our free property report.
Enter a few details about your home loan and see how much you could save on your repayments