First home saver accounts - what you need to know

Introduction

First home saver accounts (FHSA) are part of the government’s election commitment to provide a simple, tax effective way to help first home buyers kick start saving for a first home. These accounts will be available from financial institutions (including banks and super funds) on 1 October 2008.

There are several government agencies that provide information on first home saver accounts:Read more

The Australian Government has announced a First Home Owner Boost, which supplements the NSW Government funded First Home Owner Grant Scheme. According to the announcement from the Commonwealth:

First home buyers who purchase established homes will receive a boost of $7,000 that will double the grant to $14,000

First home buyers who build a new home or purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000.Read more

Today the Reserve Bank of Australia announced a cut of 100 basis points to the cash rate.

This announcement follows a 0.25 percent cut to the cash rate by the RBA last month on the 2nd of September.

If lenders are able to pass on this 1.25 percent cut in full to home loan interest rates the reduction will be welcomed by everyone with a variable interest rate home loan at present.

The Reserve Bank of Australia announcement from earlier today is copied below for your convenience.

STATEMENT BY GLENN STEVENS, GOVERNOR MONETARY POLICYRead more

The AMP Bank First Home Saver Account (FHSA) is a simple and tax effective special purpose savings account that is designed to help customers get into their first home sooner.

Customers can use the account to save the deposit for their first home, or to cover other costs associated with purchasing their first property.

This account has been designed by the Federal Government to help boost customers chances of buying their own home in a tax effective way.

Account features include: Read more

• No minimum opening deposit.
• No bank fees.

The NSW Office of State Revenue has recently changed the First Home Owners Application forms.

From the 1st September 2008 the new style application forms should be used.

Old style applications will be accepted until the 30th December 2008 after which they become obsolete.

New style application forms can now be downloaded from the following web address:

http://www.osr.nsw.gov.au/libdoc/forms/ofh001.pdf

EASY GUARANTOR LOANS

• No guarantor fees
• 2nd Mortgages are acceptable
• 100% + Cost can be borrowed
• Liability is limited
• Not restricted to Mum & Dad
• Principle place of residence are accepted
• Pensioners accepted as guarantors
• Also available for refinances

Contact Ability Finance brokers on 02 80024035 for information.

My Home Package has been designed to help borrowers save money and pay off their loans sooner.

For customers that want to reduce the cost of borrowing and managing their money.

The more home loans or other eligible products the greater the savings.Read more

• No upfront establishment fees or ongoing account keeping fees on home loans for as long as they remain in the Package
• Unlimited number of eligible home loans can be included within the Package
• Optional 100% Offset Facility
• Discounts on a range of products across banking, lending and insurance.

2 weeks only

FIRST HOME BUYERS OFFER

First Home buyers eligible for the NSW/ACT Government First Home Owner Grant can apply for a First Option Home Loan with NIL Establishment Fee ($600 saving), NO Monthly Maintenance Fee ($10 per month saving) and an extra 0.12 percent discount on the First Option Home Loan rate.

The First Option Home Loan allows the customer to make additional repayments at any time and also access their redraw facility. Read more

No deposit home loan or continuing to rent

While the rising cost of purchasing a home at first seems to be a negative for first home buyers who are considering purchasing their first home, a positive is that currently available no deposit, and low deposit home loans, now offer competitive interest rates and flexibility.

Currently in Australia the break even point between making a home loan repayment and the cost of renting is often very close. Read more

No deposit home loan seekers may be noticing a new offer of a 110% home loan advertised recently.

What marketing people have actually done is labelled a no deposit home loan concept that has been available for quiet some time as a 110% no deposit home loan!

This type of home loan where borrowers who do not have any deposit is a very good idea but it may not be suitable for everyone.

The basic concept is that there must be a guarantor involved. Read more