Guide to the First Home Super Saver Scheme
Are you a first home buyer intrigued by the Federal Government’s new First Home Super Saver Scheme? Well the good news is it’s designed to help Aussies like you achieve your homeownership dreams.
Whether you’re a young Aussie squirrelling away your money for a first home loan deposit or have simply spent too many years renting while paying off your landlord’s mortgage, we'll run you through how this new scheme can help you get a foot in the property door sooner rather than later...
Home Loan Comparison Table - last updated January 22, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.34% p.a. variable2.34% p.a.Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
CompareCompareUHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
CompareCompareCelebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
interest rate
comparison rate
Initial monthly repayment
2.04% p.a.
fixed 2 years2.79% p.a.Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
CompareCompareSpecial Offer Reward Me Fixed Rate Home Loan
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
- interest rate
- 2.04% p.a.
fixed 2 years
- comparison rate
- 2.79% p.a.
- Upfront fees
- $450
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - up to $10,000 per annum
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $300,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $3,000 cashback for new borrowings of at least $300,000 with applications made by 22 Jan 2021 and settled by 23 April 2021.
Read our Mozo Review to learn more about the Special Offer Reward Me Fixed Rate Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% p.a.Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
CompareCompareBasic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
First Home Super Saver Scheme
Saving for your first home is no easy task - not only do you have the home loan deposit to save up for but there’s also the cost of lenders mortgage insurance, stamp duty (unless you’re eligible for exemption in your state) and upfront mortgage fees.
So it’s easy to see why the Australian Government has attempted to fix housing affordability by introducing the First Home Super Saver Scheme. As a first home buyer you can:
- Opt in to the scheme with the Australian Taxation Office (ATO). Then you’ll have the ability to...
- Sacrifice up to $15k of your salary each year, which for instance your employer will then transfer into your super account on top of the 9.5% compulsory super contributions each time you get paid. Instead of being taxed at the marginal tax rate that usually applies to your salary, all funds saved through the scheme will only be taxed at 15%.
- Withdraw your savings once they’ve hit the $30k cap (which will get taxed 30% below the marginal tax rate that applies to your income bracket).
Sounds pretty good right? Let’s see if it’s really all it’s cracked up to be, by running through the positives and negatives below…
Pros
- Couples are eligible to participate, meaning they can make extra super contributions individually, then withdraw the funds later and roll them into the one home loan deposit.
- No new or separate account is required provided your super account is up and running as required by law for all Aussie workers (apart from sole traders or small business owners).
- You’ll save more than you would putting cash in a savings account. According to Treasurer Scott Morrison in his 2017 Federal Budget speech, most first home buyers who use the scheme will accelerate their savings by at least 30%. When we crunched the numbers, an Aussie on an $80k salary who makes an additional super contribution of $15k each year, would have a total of $25,603 after 2 years - making them $5,297 better off than if they had put that money in the best savings account at the time of writing at 3.05%.
Cons
- Depending on the type of property you’re looking to purchase and the area you live in, $30k probably won’t provide you with a large enough deposit to buy a home which means you’ll most likely need to boost it with additional savings. Once you withdraw the money you've saved through the Super Saver Scheme, you've got 12 months to sign up to buy or build a home, which means you'll likely have to be saving these extra funds at the same time. If you don't buy a home in that 12 months, you can put the savings back in your super account, apply for another 12 month extension or if you want to keep it in your savings account, you'll have to pay a tax of 20% of the assessable amount you saved through the FHSS.
- Taxpayers will cough up $250 million for the scheme over four years (with the ATO receiving $9.5 million on top of that figure to implement the scheme).
To find out more about the First Home Super Saver Scheme visit the ATO’s about page here and before you go read our top tips for getting your first home loan approved below. Also check if you're eligible for the First Home Owner Grant in your state or territory. Then read up on our top first home buyer tips below.
Tips for first home buyers
While taking the first step and saving for your home deposit (and other property buying costs) may be exciting, when you get there you still have to convince the banks that you’re worthy of a home loan. So make sure you:
1. Can show genuine savings. When you apply for a home loan the lender will want to see that you have 'genuine savings' by looking at least 3 months worth of your most recent bank statements. The benefit of a good savings history is it shows the bank that you’re more than capable of repaying the home loan.
2. Don’t job hop. Unless absolutely necessary, it’s a good idea to stay with your current employer, so you can show the lender you have a stable income and are not a risky borrower.
3. Check your credit score. It’s easy to receive a copy of your credit score these days, as there are several online credit reporting providers which allow you to access a copy of your credit report once a year for free. When you download your report, make sure you look out for any errors, and get them removed from your file before applying for a home loan.
^See information about the Mozo Experts Choice Home Loans Awards
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