The Federal government’s incentive scheme for first-time homebuyers is about to go live with applications open from next Monday.
The First-Home Buyer Incentive enables eligible buyers with incomes of up to $120K to reduce mortgage payments without increasing the amount needed for a down payment.
The incentive is available to buyers of new or existing homes and new or resale manufactured/mobile homes. The incentive is 5%, with a 10% option for new constructions.
A participant’s insured mortgage and the incentive amount cannot be greater than four times the participant’s qualified annual household income.
Homebuyers should be aware that using the incentive means that the government will share in both upside and downside changes in the property’s value.
The incentive must be repaid when the home is sold or after 25 years, whichever is sooner.
How much can be saved?
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