First Home Super Saver cap to be increased to help Aussies save a deposit

The maximum amount of superannuation that Australians can dip into to purchase their first home will soon be bumped up by $20,000, following the passage of new legislation last week.

Starting 1 July 2022, first home buyers will be able to access up to $50,000 worth of voluntary contributions via the First Home Super Saver Scheme. That amount was previously capped at $30,000.

Since it was introduced in 2017, the scheme has allowed first home buyers to use their superannuation accounts to save for a home deposit, either by sacrificing part of their salary each year or by making personal contributions.

Eligible contributions are taxed at 15 per cent, rather than the higher rate first home buyers would be required to pay through income tax. Importantly, only voluntary super contributions can be withdrawn. 

Any Australian above the age of 18 can opt in to the scheme, so long as the following criteria are met:

  • You have never owned a property in Australia before
  • You have not previously received a FHSS payment
  • You intend to live in the property you are purchasing as soon as possible
  • You must purchase a property within 12 months of applying for your funds to be released (the ATO can extend this by another 12 months if necessary)
  • You must live in the property for at least six of the first 12 months following settlement

In addition to the changes to the FHSS scheme, the government will also reduce the eligibility age for those hoping to downsize and put the proceeds of the property sale towards their superannuation, from 65 to 60 years old.

The government hopes this will encourage older Australians to bring forward their plans to sell the family home and increase the stock of larger homes available for younger families.

For more on the support available to first home buyers, browse our guide to ​​first home owner grant and deposit schemes. And if you’re in the market for a home loan, visit our home loan comparison page, or browse the selection below.

Home loan comparisons on Mozo - last updated 13 August 2022

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  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    Affordable home loan rate for buyers or refinancers.. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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