First Home Saver Accounts - what it means for homebuyers

Potential first-home buyers will be able to claim as much as $1,700 a year in government funding with the new First Home Saver Account.

Unveiled by ANZ and Commonwealth banks earlier this week, the new bank accounts will offer eligible would-be homeowners 17 cents for every dollar saved, as long as they put in at least $1,000 each year.

As an example, a single first-home buyer who puts away $5,000 annually will be offered $850 in government funds each year, for up to four years.

Meanwhile, couples who save double that will be able to claim $1,700 back as part of the scheme, which is expected to cost taxpayers around $1.2 billion over the next four years.

When buyers find a home they want to live in, they simply withdraw all the funds and close down the account.

Federal Treasurer Wayne Swan has told the Courier Mail that the new bank accounts will likely be welcomed by potential buyers, describing the scheme as being “a real help”.

“Saving a decent deposit for your first home is one of the biggest financial hurdles young Australians face these days,” he said.ADNFCR-1761-ID-18795384-ADNFCR