The FHSSS allows first home buyers to save money inside their super fund, potentially helping them save faster due to the concessional tax treatment of superannuation.
In layman's terms, first home buyers can stash their deposit savings in their super fund to save on tax.
The voluntary contribution cap was proposed to be changed from $30,000 to $50,000 from July 2022 in the 2021-22 Federal Budget.
This would mean that based on a maximum contribution of $50,000, one's housing deposit could be boosted by thousands of dollars in tax savings compared to saving via savings accounts, which are used with after-tax income and subject to Capital Gains Tax.
Arjun Paliwal, Founder and Head of Research at buyer's agency InvestorKit, said that while schemes and financial support are great in the moment, it will always be a 'band-aid solution' to supporting first home buyers.
"This is another great step in improving housing accessibility for first home buyers. Its impact will add to the demand equation for housing markets across Australia as more liquidity is there to boost deposits for first home buyers," Mr Paliwal said.
"[But] leaders across our nation need to balance short and longer-term priorities."
Mr Paliwal said a long-term priority that's less talked about is creating greater population spread across Australia.
"Constant discussion, innovation, vision and commitment to this plan will unlock a greater Australia and one that can sustainably support the entry of first home buyers and reduce rents through greater and more comforting investor participation across the nation," Mr Paliwal said.
See Also: Do the First Home Super Saver changes make it worth using now?
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.49% p.a. | 6.51% p.a. | $3,157 | Principal & Interest | Variable | $null | $230 | 70% |
| Promoted | Disclosure | ||||||||||
6.74% p.a. | 6.79% p.a. | $3,240 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | ||||||||||||
6.75% p.a. | 7.16% p.a. | $3,243 | Principal & Interest | Variable | $30 | $null | 80% | |||||||||||||
6.59% p.a. | – | $3,190 | Principal & Interest | Variable | $0 | $995 | 80% | |||||||||||||
7.00% p.a. | 7.39% p.a. | $3,327 | Principal & Interest | Variable | $0 | $445 | 60% | |||||||||||||
7.24% p.a. | 7.29% p.a. | $3,407 | Principal & Interest | Variable | $0 | $221 | 80% | Disclosure | ||||||||||||
6.59% p.a. | 7.15% p.a. | $3,190 | Principal & Interest | Variable | $395 | $null | 60% | |||||||||||||
6.99% p.a. | 7.01% p.a. | $3,323 | Principal & Interest | Variable | $0 | $230 | 80% |
| Promoted | Disclosure |
Image by Luis Villasmil on Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
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Harry O'Sullivan
Bea Garcia
Denise Raward
Arjun Paliwal
Jacob Cocciolone
