Problems with interest rates and repayments? Ask for home loan help.
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The First Home Savers Account is a new scheme introduced by the Federal Government which came into effect on 1 October 2008.
The accounts can be opened at most banks and credit unions, and individuals must contribute at least $1,000 per year for a minimum of four years. The government will contribute 17 cents for every dollar saved, on the first $5,000 of individual contributions made
each year.
The contributions are tax free, and you can withdraw the account balance tax free to buy or build a first home in which to
live. The full amount will need to be withdrawn and the account closed.
Applicants are eligible if they:
- are aged 18 or over and under 65;
- have not previously purchased or built a first home in which to live;
- do not have, or have not previously had, a First Home Saver Account; and
- provide their tax file number to the provider.
A free First Home Owners Grant eligibility quiz is available here.
You must live in the home for at least 6 months within the first 12 months of purchasing the home or completion of construction.
The account must be open for at least four years, and have a minimum contribution of $1,000 per year. However, if an account holder is purchasing a property in joint names with someone else who also holds an account, only
one account holder needs to meet the four-year requirement. If one person meets this, then the other
individual can also withdraw their funds.
The funds must be used to purchase a first home. Should your circumstances change, and you no longer wish to buy a property, the funds are transferred to your superannuation fund.
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