First Home Saver Accounts

Financial help is at hand for first home buyers!

For many Australians, buying a first home can seem like a distant dream as the battle to save up enough money to put down a deposit becomes an uphill struggle.

To help first home buyers on to the property ladder, the Government is set to introduce a brand new savings initiative on 1 October 2008 - First Home Saver Accounts (FHSAs).

This has been designed to further boost savings for a first home deposit through tax concessions and Government contributions, delivering higher returns versus conventional savings accounts.

If you are aged between 18 and 65, have never bought or built a first home before in Australia and have never previously opened a FHSA, you are likely to be eligible to take advantage of this investment scheme.

To understand your eligibility for this first home owner saving program, speak to your local Mortgage Choice broker for further help and information.

Key facts

No minium deposit required to open account
Limit of $75,000 on overall account balance
Flat Government contribution of 17% paid on first $5,000 of individual contributions made each year
Government contributions are tax free
Interest earned taxed at 15%
Can still claim the First Home Buyers Grant in addition
Available through public-offer superannuation providers, life insurers, friendly societies, banks, building societies and credit unions

Potential drawbacks

You must contribute at least $1,000 in at least four separate financial years before you can withdraw your funds
You must use your fund to purchase or build a new home. The only alternative is to switch the entire amount into your superannuation fund
You must live in the home for at least 6 months within the first 12 months of purchase or completion of construction

For advice on whether opening a Government first time buyer savings account is the best approach for you right now, contact your local Mortgage Choice broker who can talk you through all of your options.

To find out more about the FHSA, you can also visit the Government’s website.

Benefits of using Mortgage Choice

Experienced specialists. We’ve spent more than 14 years helping first home buyers secure suitable home loans.
With access to a wide range of banks and lenders, we can compare literally hundreds of policies. We do the shopping around for you.
Unlike some other brokers, we don’t offer our own loan products.
With you every step of the way. We help you through the entire process.
Brokers right across Australia - local brokers with local knowledge.

Contact Mortgage Choice today and we’ll help you get started.

How Mortgage Choice can help you

Mortgage Choice offers professional services to help you find your first home loan. We offer dedicated help and information for first home buyers including information about eligibility for the Government’s First Home Saver Accounts and the First Home Buyer’s Grant.

Using a Mortgage Choice broker takes the hassle and stress out of securing a home loan.

First they understand your personal circumstances and goals.
Next they sort through hundreds of available home loan products from their large lender panel and find suitable options for you.
Then they help you make an informed choice, and assist with the whole process from application through to settlement.

Better still, Mortgage Choice does not charge you for our service. Our fees are paid by the home loan lenders, and our consultants get paid the same* commission no matter which loan you choose from our panel of lenders. Finding a solution that meets your needs is our top priority.

*This information refers only to loans provided by our panel of lenders with whom Mortgage Choice has an arrangement, under which it receives commissions and other payments.