If you’re a first-time homebuyer in Australia and have purchased a property under the First Home Buyer Deposit Scheme (FHBDS), you may be wondering what happens if you decide to sell the property
Q: What happens if I sell my property purchased under the FHBDS?
- Repaying the FHBDS loan: When you sell your property, you’ll need to repay the loan amount you received through the FHBDS. This loan is an interest-free loan that’s available to eligible first-time homebuyers to help them purchase a property with a lower deposit requirement. You’ll need to repay the loan amount in full within 6 months of the sale.
- Paying back the equity: In addition to the loan amount, you’ll also need to repay any equity that you’ve built up in the property. This equity is the difference between the property’s value and the amount owing on your home loan. You’ll need to repay this amount to the lender when you sell the property.
- Capital gains tax: If your property has increased in value since you purchased it, you may be subject to capital gains tax (CGT) when you sell it. CGT is a tax on the profit you make from the sale of an asset, and it’s calculated based on the difference between the property’s purchase price and the sale price. However, if you’re selling your primary residence, you may be eligible for a CGT exemption.
- Eligibility for the FHBDS in the future: If you’ve sold a property purchased under the FHBDS, you may still be eligible for the scheme in the future if you meet the eligibility requirements. However, keep in mind that there are limits to the number of times you can access the scheme, and you’ll need to wait until you’ve repaid any previous FHBDS loans before you can apply again.
You’ll need to repay the loan amount you received through the scheme and any equity you’ve built up in the property. You may also be subject to capital gains tax if the property has increased in value. However, selling a property purchased under the FHBDS doesn’t disqualify you from being eligible for the scheme in the future, as long as you meet the eligibility requirements and have repaid any previous FHBDS loans.