Eligible first home savers could save money toward their home deposits in their super funds.
Previously, on Spaceship Learn:
- The First Home Saver scheme (FHSS) lets you save for your first home deposit in your super fund.
- You can do this by making voluntary contributions.
- The FHSS could give you tax and other savings, but there are costs, too, such as not being able to access your money if you change your mind.
Want to own your own home one day?
If you’re saving for your first home deposit, you’ll know it’s soul-crushing – especially if there’s no Bank of Mum and Dad to rely on.
And if you haven’t yet started to save, you should know it’ll probably take longer than you expect.
This is because most home loans require you to be able to have 5-20% of the purchase price of the property on hand as a deposit.
And with house prices skyrocketing, it feels like it becomes a little more out of reach every day.
Can the First Home Super Saver help?
If you’re eligible, you may be able to save time and money by taking advantage of the First Home Super Saver scheme.
The FHSS lets you withdraw up to $50,000 worth of eligible voluntary super contributions you’ve made and use them for your first home deposit.
The FHSS is for your first home, so you can only use the scheme once.
Are you eligible for the FHSS?
The FHSS may be the only thing we have over the boomers.
The first step is to figure out if you’re eligible to use it.
Generally, you must be:
- A member of a super fund.
- Saving to buy your first home in Australia, that you genuinely intend to live in.
- Someone who’s never wholly or partly owned property before, including an investment or commercial property.
- At least 18 years old when you withdraw your money.
- Prepared to purchase your home in the following 12 months after the money is released.
And the home you buy must:
- Be an existing residential home, or a new one you sign a contract to build.
- Not be an investment property, houseboat, block of land or motor home.
You also need to be comfortable with the admin and time it will add to the homebuying process.
For example, you’ll need to keep track of the voluntary contributions you make and allow enough time to receive your money once you’re ready to withdraw it. The ATO says it can take fifteen to twenty-five business days to receive the money after you make a release request.
Here’s a bit about how to withdraw your money for the FHSS.
Pooling your money?
If you’re buying a house with one or more people, such as significant others, friends, or family members, each one of you who is eligible can take advantage of the scheme.
For example, if you and your partner are both eligible, you could each withdraw up to $50,000 of eligible voluntary super contributions, plus earnings, which could take you to more than $100,000.
However, if only one of you is eligible, while you could still buy the house together, only one of you will be able to use money saved using the FHSS.
What else is there to know?
There’s a fair bit to know about the First Home Super Saver scheme. Your best bet is to seek out a finance professional who can give you personal advice. For more info, you can check out:
What is the First Home Super Saver scheme?
How much can you save with the First Home Super Saver scheme?
How can you get your money from the First Home Super Saver scheme?
Or visit the ATO.
The information in this article is prepared by Spaceship Capital Limited (ABN 67 621 011 649, AFSL 501605). It is general in nature as it has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions in relation to the First Home Super Saver scheme based on the information in this article you should consider whether the information is appropriate having regard to your objectives, financial situation and needs.
