The NSW Government has just extended the Seniors Duty Exemption under the NSW Home Builders Bonus Scheme to people aged 55 years or older (previously only 65 years or older). This will effect the purchase of new properties with a contract date between the 1/7/2011 and 30/6/2012.
The purchase must meet the below criteria:
- The property must be a new property, off the plan purchase or a substantially renovated property.
- The contract date must be between the 1/7/2011 and 30/6/2012.
- The contract price must be no more than $600,000.
- All purchases must be 55 years old or older.
- The purchasers must move into the home in the first 12 months and remain in the property for at least 12 months.
- The purchasers must have owned and occupied a home in the 12 months prior to buying this property.
- The purchasers must sell their previous property either prior to or within six months after the settlement of their new property.
This scheme can result in a saving on stamp duty for up to $22,490. We expect to see many seniors and “empty nesters” downgrading to a smaller home and taking advantage of this offer.
However applying for a mortgage as an older borrower isn’t always straight forward. In particular some lenders have age restrictions in place which make it harder to borrow money as you approach retirement age.
We find many senior borrowers also consider buying specialised over 55’s accommodation such as SEPP 5 properties. These are often unacceptable security for the major banks as they can be more difficult to sell than standard homes.
If you would like assistance with your home loan then please contact our mortgage brokers on 1300 889 743 or enquire online and one of them will give you a call back to discuss your purchase.