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First Home Saver Account Guide for First Home Owners

First home saver accounts are designed to assist Australians 18 years and older to save for their first home. The accounts are offered by a range of banks and credit unions. The first home saver account is a government initiative designed to compliment the existing First Home Owners Grant scheme.

Features of First Home Saver Accounts:

The Australian Government contributes 17 per cent on the first $5,000 (indexed) of individual contributions made every year. For example, if you contribute $5,000, the government will contribute $850.
A minimum of $1,000 per year over four separate financial years must be deposited before funds can be withdrawn for the purpose of buying a property
Interest earned is taxed at the low rate of 15 per cent
Withdrawals from the account are tax free when they are used to purchase a first home to live in
No minimum annual deposit is required to keep the account open
First Home Saver accounts can remain open until you are 65 at which point they must be closed
Withdrawals are not allowed from the account except for the purpose of buying a first home. Funds withdrawn that are not put towards a first home are deposited into your Super fund and cannot be accessed until you are 65.
Make personal contributions of at least $1,000 for each of four financial years (not necessarily consecutive years) before you can withdraw your money.
An account balance cap of $75,000 exists (indexed annually), after which interest is still paid to increase the balance but further contributions by the account holder are not accepted

Some of the Banks Currently Offering First Home Saver Accounts:

First Home Buyer? Compare Home Loans

CANSTAR CANNEX Star Ratings are a great way for first home buyers to compare mortgages across Australia. Take a look at the current Star Ratings for home loans.

First Home Buyer Budget Calculator

If you're a potential first home owner, and if you're starting to save for that first home, you need to make a budget. That's where our first home buyer budget worksheet can help. Simply download the PDF, print, and use it to work out how much you need to save in order to save up for that home loan deposit.

Savings Accounts ...

Star Ratings - Home Loans

Special types of home loan

Low-Doc
These loans suit self-employed people.
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For retirees who need some extra cash.

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