How to use your super to help buy your first home

Saving money for a deposit continues to be one of the biggest challenges for first home buyers. To help you buy your first home, you may be able to access some of your super.

If you’re a first home buyer, you can save through your super to buy your first home using the First Home Super Saver (FHSS) scheme.

You may be able to use your super for a first home deposit if:

• You're 18 or older
• You've never owned a property in Australia before, including an investment property
• You haven't already tried to use your super for a first home deposit
• You're planning to live in the home you buy for at least 6 months of the first 12 months you own it.

The First Home Super Saver scheme allows you to make voluntary contributions to your super to help save a deposit for your first home. You can withdraw this amount, plus investment earnings when you are ready to buy a home.

You can contribute up to $15,000 per year up to a total capped amount of $50,000.

The benefits of using the FHSS scheme include:

• Potential tax savings helping you save money faster.
• Earn higher investment returns in super rather what you’d get in a savings account.
• Buy a house with a partner – they can also add $15,000 per year if they are eligible.
• You have 12 months to buy a house with the money.

The limitations of using the FHSS scheme include:

• You can only withdraw a lump sum once unlike with a normal savings account.
• If you aren’t able to use your super for a house deposit, you can’t take the money out again and it has to stay in your super until you retire.
• You can only save up to $50,000 total in your super, which may not be enough.

For more details on the FHSS scheme, please refer to https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/FHSSessentials_n75457.pdf.

Product Disclaimer:
This is general information only. No investment advice has been provided to you. The information in this blog is general information only and has been prepared without taking into account your personal objectives, financial information and needs. You should consider any advice in this blog in light of your personal objectives, financial situation or needs before acting on it. You may wish to consult an accountant and or licensed financial adviser to do this. Hailston + Co assumes no responsibility for any actions you take independently, and without seeking professional advice from your accountant or licensed financial advisor.