Starting again Owned before? Buying a home again
Renting again after a separation or a sale? Most help is built for first home buyers. You still deserve a plan.
Having owned before doesn’t rule you out. If you haven’t owned property in Australia for 10 years, the 5% Deposit Scheme may still apply. Single parents can use it with a 2% deposit if they won’t own any other property once the new home settles. What usually changes is stamp duty, because first home concessions mostly don’t apply.
Never owned before
- 5% deposit
- $42,500
- Stamp duty
- $9,797
Owned, 10+ years ago
- 5% deposit
- $42,500
- Stamp duty
- $32,437
Illustrative. Both buyers eligible for the 5% Deposit Scheme, established home in Sydney. NSW first home duty concessions are for buyers who have never owned. Excludes lender, legal and other costs.
Why this door exists
About a third of the people who rang me had owned before. They'd separated, sold, moved cities or had a business go wrong, and they were renting again. Many assumed the help was only for first home buyers.
Some of it is. Some of it isn't. Starting again shouldn't mean starting from zero, so the first job is working out which rules still work for you.
Which help may still apply if I’ve owned before?
Rules checked against the government's own guides. Eligibility applies to every one.
| Help | Owned before? | The rule |
|---|---|---|
| 5% Deposit Scheme | Yes, after 10 years | Neither applicant can have held property in Australia in the 10 years before the home loan date, including property held with a former partner. |
| 5% Deposit Scheme for single parents | Yes | 2% deposit. You must be single with a dependent child, and not hold any other property once the new home settles. |
| Help to Buy | Generally no | You can't own property in Australia or overseas, with limited exceptions for single parents buying out a co-owner. |
| First home stamp duty concessions | Usually no | In NSW, only for buyers who have never owned residential property in Australia. |
| First Home Owner Grant | No | First home owners buying or building a new home only. |
What changes the second time around?
Stamp duty
On an $850,000 home in Sydney, a buyer who has never owned pays $9,797. A buyer who has owned before pays $32,437. That $22,640 gap is often the surprise, so it goes into your real number from the start.
Existing debts
A card limit, a car loan or a personal loan from the last chapter weighs on what you can borrow. Lenders count a card at its full limit, even if it's paid off. Closing or reducing one can change the answer.
The loan term
If you're over about 50, most lenders ask how you'll repay the loan before you stop working. That doesn't mean no. It means a plan, written down: downsizing, paying extra, or part of your super.
Buying again after selling or moving cities
The same 10-year test applies. If you sold more than 10 years ago, the 5% Deposit Scheme may apply. If you sold recently, the money from the sale is usually your deposit, and the question becomes which lender reads your income best.
Moving states changes the stamp duty too. Victoria is the hardest, at about $40,000 on a $750,000 home.
When may waiting be the better answer?
- The property settlement isn't final yet, so neither of us knows what you'll own or owe.
- You've just changed jobs and are still on probation.
- Paying down one debt first would open up more lenders.
If waiting is the better answer, I'll say so, and give you the number to aim for.
How I work The Pace Plan
The same three steps as every door, with two changes: step 2 includes the help people assume they've lost, and step 3 includes a plan to pay it off before you stop working.
- Step 1
Get your real number
The deposit, the stamp duty and the fees for your state and price.
- Step 2
See every way in
Government schemes first, and the catch on each, in writing.
- Step 3
Set your pace
Choose the option and the timeline, then pre-approval, offer and settlement, timed to your lease, with a plan to pay it off.
Schemes first, every time. I tell you the catch. If waiting is the better answer, I'll say so.
FAQ Questions clients ask
Can I use the 5% Deposit Scheme if I owned a home with my former partner?
Only if neither applicant has held property in Australia in the 10 years before the home loan date, and that includes property held with a former partner. Single parents are assessed differently: they can use the scheme if they won’t own any other property once the new home settles.
Can I buy out my former partner’s share of our home with the scheme?
Possibly, under the single parent version. A single parent who co-owns the home can use the scheme to become its sole registered owner through the new loan, if the other eligibility rules are met, including the price cap.
Do I pay full stamp duty if I’ve owned before?
In NSW, yes. The First Home Buyers Assistance Scheme only applies if you’ve never owned residential property in Australia. Other states have their own rules, and a few have concessions for any home buyer, so I work it out for your state.
Am I too old for a 30-year home loan?
Not necessarily. Lenders don’t set an age limit, but they ask how you’ll repay the loan before you stop working. A plan to downsize, pay extra or use super can answer that question, and I write it into the application.
Does child support count when lenders work out what I can borrow?
Child support you pay is counted as an expense. Some lenders also count child support you receive as income, usually with evidence it’s been paid regularly and will continue. Lenders differ here, which changes borrowing power.
Should I apply before or after the property settlement is final?
Most lenders want the property settlement finalised and in writing before they approve a new loan, because it fixes what you own and owe. You can still get your real number before then, so you know what to plan for.
Get your real number in one 30-minute session.
Then start again at your pace.
So you could stop moving and start settling.