New home buyers in Victoria got some good news last month with the extension of the state’s First Home Buyers scheme for new home buyers. From July 1, the Victorian government will now be offering a first home buyer grant of $10,000 rather than $7,000 towards the purchase price of any newly built home.
You will also receive a 40% discount on stamp duty, rather than the previous 30%. This is the second stamp duty cut the Victorian government has announced this year, and they’re planning to cut another 10% from stamp duty for first home buyers in September 2014.
This means if you’re a first home buyer and have been thinking about buying a newly built home, now is the perfect time. The new first home buyer grant money means you could receive an extra $3,000 on top of the current $7,000 towards your first home loan, which will reduce the amount you have to borrow and make your monthly repayments lower. High repayments are usually the main barrier to buying a new home, as these homes hold their value better in the long term, but tend to have a higher purchase price.
The stamp duty discount will also help lower your purchasing costs if you are buying a new home, as stamp duty is usually the biggest extra cost you will have to pay when you buying a first home. This discount is also available for first home buyers who are purchasing an existing property, as long as it is below $600,000. You can use Choice Home Loans’ stamp duty calculator to work out how much stamp duty you will now have to pay.
With the new grant amounts coming into effect in July, now is the perfect time to consult a mortgage broker about your home loan options in the new financial year. If you purchase a property at the Victorian average price of $400,000 for a newly constructed dwelling , you will save $16,500 on your loan and costs from the combination of the increased grant and stamp duty cuts.
If you’re a first home buyer, Choice Home Loans’ dedicated team of mortgage professionals can help you find the perfect loan for your needs, and make sure you receive all the grants you’re entitled to. Talk to one of our team today to find out more.