What is the FHSSS?
- The FHSSS was introduced in 2017 as a way to allow first home buyers to salary sacrifice part of their income so as to then withdraw the funds when they are ready to purchase their first home
- Most lenders will consider these funds as genuine savings as you are consistently making contributions to the funds
- It is, however, limited to a maximum of $30,000 worth of contributions over a two year period; with no more than $15,000 worth of contributions per year.
Am I eligible for the FHSSS?
For any contribution made after July 2017, you will be able to withdraw $15,000 per financial year if:
- You are 18 years +
- Never used the scheme
- Never had any land in your name in Australia
- You have a valid signed contract of sale and proof of occupancy certificate
- You will also need to intend to and occupy the property for the first 6 months of purchase.
Any extensions after withdrawal (if purchase doesn’t proceed) needs to be given by the Tax Commissioner.
How do lenders treat this type of deposit?
As previously stated, most lenders will treat your contributions as genuine savings as you are the one who is consistently contributing to the scheme.
To find out more, enquire online and one of our brokers will contact you. Alternatively give us a call on 1300 656 600 for a confidential discussion.