How much do I need to save for my first home in Victoria?

July 18, 2017
Craig Kendall

It’s no secret that finding an affordable property as a first home buyer in Melbourne is becoming more and more difficult. Many first home buyers resort to drastic measures to get into their own home, like moving back in with their parents to save money.

 

But don’t give up yet. There are a few ways that the state government is trying to help Victorians get into their first home sooner, and they are exclusively available to home buyers who qualify for the First Home Buyers Grant.

 

No more stamp duty

Before 1 July 2017, any first home buyer in Victoria who purchased a property worth $600,000 would be required to pay in excess of $15,000 in stamp duty.

 

But no more! From 1 July, the Victorian State Government removed all stamp duty fees for first home buyers purchasing a home worth $600,000 or less. And, those purchasing a property worth between $600,000 and $750,000 will get a significant discount.

 

The changes are expected to help more than 25,000 first home buyers each year, by allowing them to save more than of $8,000 each in stamp duty fees. 

 

First home owners grant

If you’re planning on buying your first home in metropolitan Melbourne, you may be eligible for the $10,000 First Home Buyers grant from the Victorian Government.

 

But for those from regional areas, the news gets even better. From 1 July, the grant for new homes in regional areas has been doubled to $20,000.

 

What does it mean for you?

Before these changes came into place, you needed to save a deposit of at least 5%, plus costs on top of that for stamp duty and other fees.  If your loan is more than 80% of the property value, then you would need to save for the cost of lenders mortgage insurance as well.

 

Now you may not need to use your savings to pay for stamp duty.  This could mean you can get into your first home sooner. Find out what it all means for you by speaking to us at Mortgage Choice today!

 

 

Posted in: First home buyers

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