Best benefits for first home buyers

So, you’re keen to renovate the modern/industrial/Scandi apartment of your dreams and paint your front door a shocking shade of pink – just a hint of what you can do when you own your own home, but how are you going to get there? Yes, saving is the first order of business, but don’t miss out on the benefits that can help make that dream a reality. Consider them a push towards your goal and a sweetener of the whole experience. Here they are.

First Home Owners’ grants

No doubt, you’ve heard of these, because they offer some serious bonuses to aspiring home owners. These tasty sums of cash can be a deciding factor in locking in your new home. In New South Wales, for example, if you buy a new home for up to $600,000, you may be eligible for a $10,000 grant! Or if you’re building a new home valued at up to $750,000, you may be eligible for a $10,000 granti.

These grants differ from state to state, so be sure to find out more here.

i https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/

Saving schemes

Before you even get to the settlement stage, saving for your home loan will be your top priority. Thanks to the First Home Super Saver Scheme, you’ll be able to squirrel away your dollars in your super fund to reach that deposit goal quicker. Savvy savers make voluntary contributions to their super and save up to $15,000 per year (up to a max of $30,000) which they can later withdraw for a deposit to purchase a first house, subject to terms and conditions. This will be taxed at a lower rate of 15% instead of the marginal rate of tax, which can be up to 45% (depending on your income)ii. It’s like a super-charged piggy bank. However, these contributions count towards your normal contributions caps of $25,000 for concessional contributions and $100,000 for non-concessional contributions.

ii https://www.iselect.com.au/home-loans/first-home-super-saver-scheme/

Stamp Duty concessions

Stamp duty can be a sting in the tail of the home buying high. It’s often a second thought and can sometimes fly under the radar and not be factored into the budget – seriously, it can cost as much as a new car. But in top news for first home buyers, that stamp duty sting has been taken down a few notches for buyers in some Australian states. For example, if you buy your first home in New South Wales or Victoria, you won’t have to pay stamp duty on properties up to $650,000. And homes between $650,000 and $800,000 will see less stamp duty being chargediii. Use our stamp duty calculator to see your state’s policies around thisiv, because it’s a big plus for first home buyers.

iii https://www.nsw.gov.au/improving-nsw/projects-and-initiatives/first-home-buyers/

iv https://virginmoney.com.au/home-loans/tools-and-calculators/stamp-duty-calculator

Rewarding home loans

Thought you’d be done with holidays once you bought a home? Think again. Eligible first home buyers1 who choose Virgin Money for their home loan will be rewarded with 20,000 Velocity Frequent Flyer Points* for every $100,000 drawn at settlement2 if you apply by 31 May, settle by 30 August 2019 on eligible new loan with an LVR of 90% or below. But there’s more – you’ll also receive the standard monthly3 1,000 Points for each loan split, and 30,000 anniversary Points every three years4 to turn your home loan into a holiday. Breaking it down, an average loan size of $500,000 could earn you 304,000 Velocity Frequent Flyer Points over six years5! To put it in perspective, that’s enough Points for two return economy flights from Sydney to Los Angeles6!

Kid flying on a suitcase

Extra deal sweeteners

Right now, eligible First Home Buyers who take out a home loan with Virgin Money can score some extra perks.

  • See your settlement fee waived
  • Secure a special two-year fixed rate7 of 3.68% (3.77%p.a. comparison rate8) on Owner Occupier Principal and Interest loans with a loan to value ratio of up to 90%.
  • Get a 20% lenders mortgage insurance discount9 for eligible home loans with a base LVR between 80.01-90%.
  • If you take out Virgin home/or and contents insurance policy before settlement you’ll also get a $100 gift card10 and 10,000 Velocity Points11

Seriously rewarding!

Lock in these benefits

  • Things you need to know

    *To earn and redeem Velocity Points, you must be a Velocity member. Velocity membership and Points earn and redemption are subject to the Member Terms and Conditions, as amended from time to time. Only the person listed as the Primary Borrower on the application will be eligible for Velocity Points, subject to meeting Virgin Money’s eligibility criteria.

    1. First Home Buyer(s) are customers who are eligible for a government First Home Owner Grant and/ or First Home Buyer government stamp duty concessions (refer to www.firsthome.gov.au for eligibility details) and who apply for a new Owner Occupier loan for the purchase of a property between 4 March and 31 May 2019 (inclusive) and settle by 30 August 2019.

    2. All new customers who apply and are approved for a Virgin Money Reward Me home loan with LVR of 90% or below, between 4 March and 31 May 2019 (inclusive) and settle by 30 August 2019 will receive 2,000 Velocity Points for every full $10,000 drawn at settlement (normally 1,000 Velocity Points). For construction loans, Velocity Points will be paid after the first drawing (paid in $10,000 increments). LVR is the loan to valuation ratio of your loan. Velocity Points will be credited to the Primary borrower’s Velocity account only, up to 60 days after settlement.

    3. 1,000 Velocity Points per loan account per month.

    4. Anniversary Points, currently 30,000 Velocity Points, are paid on every 3 year anniversary of the settlement date provided total borrowings are greater than $50,000 (net of any balances held in a linked offset facility). Points are only paid once regardless of the number of split borrowings a customer has with us and they must be a continuous Reward Me Home Loan customer during the period.    

    5. 304,000 Velocity Points over 6 years assumes you qualify for the Virgin Money limited time Double Settlement Points offer, your borrowings split across two loan accounts for the 6 year period, minimum aggregate net balance of at least $50,000 and earn rate remains the same for the period shown.

    6. The quoted redemption fares are correct as at 24 August 2018 and are subject to change. Fares are subject to availability, and seats are limited and may not be available at peak times or on all flights. Price is based on a one way or return economy Reward Seat fare or Business Reward seat fare as specified, and must be booked on the Velocity website. Taxes, fees and surcharges are payable in addition to Velocity Points redeemed. Any taxes or fee components are not eligible for Points earn. Price may vary until ticketed. All payments made on the internet or on the phone via debit/credit card are subject to a payment surcharge between 0.6% to 1.3% of the total value of the card transaction (capped at $70 per passenger per booking). For Rewards Seat bookings on Etihad Airways operated flights, an Etihad Airways Carrier Charge will apply, view more information here. Add $40 or 5,200 Points for international short haul bookings or $70 or 8,800 Points for international long haul booking per person for bookings made on the phone. A checked baggage allowance is included in your fare, view Reward Seat Baggage Allowances for details. Name changes are not permitted. Other changes, refunds and cancellation are permitted prior to travel and may incur a fee and any applicable fare difference. You may also be entitled to a refund under the Australian Consumer Law in certain circumstances. View the Velocity Rewards Seat fare rules for more information. Some flights may be operated by a partner airline. Different baggage allowances and conditions may apply to these flights. Full terms and conditions at velocityfrequentflyer.com.

    7. Special 2-year fixed rate of 3.68% per annum (comparison rate: 3.77% per annum) for Owner Occupier Principal and Interest loans with up to 90% LVR - To be eligible for this special 2 year fixed rate offer, customers must be First Home Buyer(s) and have an LVR of 90% or below (inclusive of LMI). Offer is not available to First Home Buyers applying for a construction loan.

    8. Comparison rate: Comparison rate calculated on a loan amount of $150,000 for a term of 25 years. For fixed rates, the comparison rate is also based on an LVR of 80% or less. These rates are for secured lending only. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates and fees are subject to change without notice.

    9. 20% LMI discount for eligible First Home Buyer home loans between 80.01-90% LVR. To be eligible for the 20% LMI discount (off Genworth’s standard rate card), customers must be a First Home Buyers special offers and have a base loan LVR between 80.01%-90%. The property being financed must be located in a metropolitan area and not be in a high density location (postcode restrictions apply).  Discount applied off Genworth’s standard rate card. Credit criteria, fees and charges, terms and conditions apply. Important Information: Notwithstanding the above eligibility criteria, Genworth Financial Mortgage Insurance Pty Limited, the issuer of the Lenders Mortgage Insurance, reserves the right to accept and approve LMI proposals in its absolute and sole discretion.

    10. To be eligible for the First home Buyer’s $100 Gift card Offer, customers must be First Home Buyers and take up a new Virgin Money home and/ or contents insurance policy for the property they are financing before settlement. Customers who cancel the home and/ or contents insurance policy within 30 days of taking it out will not be eligible for the $100 gift card. Offer is only valid for one home and/ or contents insurance policy taken out before settlement. Provided the above conditions are met, a $100 VISA gift card will be sent to the primary borrower’s home address within 60 days of their policy being taken out. The $100 VISA gift card will be valid for 12 months from the time of activation and can be used for purchases of goods and services where VISA gift cards are accepted. Any ancillary costs associated with redeeming the pre-paid VISA card are not included. Any unused balance of the pre-paid VISA card will not be awarded as cash. Redemption of the VISA gift card is subject to any terms and conditions of the issuer, including those specified on the VISA gift card.

    11. 10,000 Velocity Points is available to new Virgin Home and/or Contents Insurance customers who have a settled Virgin Money Reward Me Home Loan and are listed as the Primary Borrower. Offer is only valid if you purchase a Virgin Home and/or Contents policy online at virginmoney.com.au/home-and-contents and a valid Velocity number is provided at the time of application. Maximum of 10,000 Velocity Points per policy. In order to receive the Points, the policy holder’s name must match the Velocity name and account number provided and the policy must not be cancelled within 30 days of purchase. Velocity Points will be credited to eligible Velocity Account's up to 60 days after policy commencement date. This offer is valid from 01 March 2016 to 31 December 2019 and is subject to change or removal at the discretion of Virgin Money. To earn and redeem Velocity Points, you must be a Velocity member. Velocity membership and Points earn and redemption are subject to the Member Terms and Conditions, available at velocityfrequentflyer.com as amended from time to time. This offer cannot be used in conjunction with any other Virgin Money Home and Contents Insurance Velocity offers, is not redeemable for cash and is not transferrable. Offer is not available to existing Virgin Home & Contents Insurance customers (including renewals).