Stamp Duty Savings for First Home Buyers

The Victorian Government recently announced significant changes to the First Home Owners Grant (FHOG) and stamp duty for first home buyers.  

Stamp Duty

First Home Buyers who enter into a contract of sale from 1st July 2017 will obtain;

  • an exemption on stamp duty for purchasing a property up to $600,000 or 
  • a concession on stamp duty applied if the property is valued beteen $600,001 and $750,000.

To qualify for the exemption or the concession, the following requirements must be met;

  • the purchaser and the purchaser's partner (if applicable) must both be first home buyers
  • the purchaser must be an Australian citizen or permanent resident
  • the property purchased must be used as the purchaser's principal place of residence for a period of 12 months.

The exemption or concession applies to new and established homes. An example of the changes are refelcted in the table below.

Property Value Stamp Duty on Contracts of sale entered into on or before 30th June 2017 Stamp Duty on applicable contracts of sale entered into on or after 1st July 2017

Property Value Stamp Duty on Contracts of sale entered into on or before 30th June 2017 Stamp Duty on applicable contracts of sale entered into on or after 1st July 2017

 

   
$400,000                   $8,185                           $0
$500,000                 $10,985                           $0
$600,000                 $15,535                           $0
$650,000                 $34,070                       $11,357
$700,000                 $37,070                       $24,713

 

The stamp duty exemption/concessions are expected to befentif thousands of first home buyers and enable them to contribute more towards the equity of the home and reduce their mortgage repayments.

Summary

If you or someone you know is at a stage in their lives where they are contemplating purchasing their first home, these incentives may help. Mortgage Choice in Brimbank and Melton can assit you applying for your first home loan, providing you with expert advice at $0 cost to you. We'll search through hundred's of loans from over 20 lenders to find the right loan for you.

 

 

 

 

 

 

 

 

 

Posted in: First home buyers

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