First Home Saver Account
The federal government introduced First Home Saver Accounts (FHSA) in 2008, with the first accounts offered by financial institutions in October. The accounts, offered in addition to the First Home Owners’ Grant and any state-based first home buyer grants and concessions, provides deposit saving support for first home buyers.
First Home Saver Accounts – more information and help
Whether you would like to save a deposit using a first home saver account or would like more information on state-based concessions that can help you save a bigger deposit, your Loan Market mortgage broker can help you. Simply fill in the form, or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
First Home Saver Account eligibility
To be eligible for a First Home Saver Account, you must:
- be aged 18 or over and under 65;
- be an Australian resident for taxation purposes;
- have not previously purchased or built a first home in Australia to live in;
- not have or have previously had an account; and
- make an initial contribution of at least $1,000.
Deposit amounts and government co-contributions
The First Home Saver Accounts are designed to assist Australians aged 18 and over to save for their first home by offering tax incentives and government co-contributions to assist in the savings process.
Co-contributions are paid on individual contributions of up to $5000 per year, at a rate of 17 percent, providing a maximum government contribution of $850 per year.
As a first home buyer you can contribute up to a maximum of $75,000 to your first home saver account – any contributions over this amount will be returned to you, however outstanding government contributions and interest will still be paid.
Withdrawals will be tax free where they are used to purchase or build a first home to live in.
You will be able to withdraw the account balance tax free to buy or build a first home to live in after a minimum savings period of four years. The full amount in the account will need to be withdrawn and the account closed, and you will need to have saved a minimum of $1000 for each of the four years the account has been opened.
Alternatively, you can close your account and contribute the full amount to superannuation at any time.
Most superannuation providers, life insurers, banks, building societies, and credit unions will be able to offer the accounts.
ANZ, CBA back First Home Saver Accounts
ANZ and Commonwealth Bank of Australia offer the First Home Saver Accounts which the government hopes will help aspiring first home buyers save a larger deposit faster. There are also a number of participating Credit Unions. The Australian Prudential Regulation Authority (APRA) has a full list of First Home Saver Account providers.
For more information on First Home Saver Accounts
For more information on the accounts, you can talk to your local mortgage broker, or go to the First Home Saver Accounts Fact Sheet on the federal government website.
