Looking to buy your first home? The First Home Saver account will certainly help you go a long way.
Jessica Petilla - First home buyer at Clemton Park Village.
Buying your first home is a huge milestone, and one that can be approached many ways. Whether you’re an avid budgeter tracking expenses down to the cent, or a fly by the seat of your pants type of spender, a First Home Saver account makes saving for a home a little bit easier for all.
The main advantage of First Home Saver Accounts is that the government supports them (up till 1 July 2015, after which new accounts cannot be set up) and contributes 17% on the first $6,000 deposit (in one financial year). That’s an extra $1,020!
Like any other bank account, the First Home Saver account comes with rules so be sure to read the fine print before signing on the dotted line.
Here are the top 5 things you’ll need to know:
- You must be a first home buyer.
- All the funds saved in the First Home Saver accounts must be used for purchasing a home.
- You have to save at least $1,000 each year over at least 4 financial years before you can withdraw the money. These 4 years do not need to be consecutively running.
- Any interest you earn on your savings is only taxed at a rate of 15%. No tax is applied to deposited funds, government contributions or when you withdraw the funds.
- The maximum account balance is capped at $90,000 but it’ll be indexed in future years. After your savings reach this level, only interest and earnings can be added to the balance.
First Home Saver accounts are available from some banks, building societies, credit unions, life insurance companies and super funds such as AMP, Members Equity Bank, Police Bank and more. Check with the financial institutions in your area.
Like to speak to one of our Project Sales Managers about buying your first home? Call us on 13 38 38 today or click here to find your perfect new property.