Can I use my super to buy a house?

Updated on 26 February 2024 | 5 minute read

As a first homebuyer, you could use the First Home Super Saver (FHSS) scheme to save for a deposit using your super. Here's how it works.

Can I withdraw my super to buy a house?

Yes, if you are buying your first home and you have added extra money to your super, there is a way you can access your super to buy a house or another type of home, called the First Home Super Saver scheme.

Who can use super to buy a house?

You may be able to use your super for a first home deposit if:

You're 18 or older
You've never owned a property in Australia (including investment or commercial property, or land)
You haven't already tried to use your super for a first home deposit
You're planning to live in the home you buy for at least 6 months of the first 12 months you own it.

Learn more about eligibility

How using super to buy a house works

You need to add up to $15,000 of extra money per year to your super, up to a total of $50,000. When you've saved enough, you can ask the ATO to withdraw the extra you added to super, and use that as part of your deposit.

There's no need to apply to join the FHSS scheme. You simply add house savings to your super either before tax by salary sacrificing, or after tax by making personal contributions. Only voluntary contributions made from 1 July 2017 are eligible for release under the scheme.

Note that you'll probably save less than $15,000 per year. This is because before-tax contributions get taxed 15%, and there's a yearly limit for adding money to super – $30,000 per year including your employer's required contributions.

This method of saving is not for everyone, so make sure you check all the pros and cons below before you access super to buy a house.

Save up to $15,000 per financial year*

Make extra contributions of up to $15,000 per year
Apply for a determination from the ATO before you sign your contract
Ask the ATO to release the funds from your super
Notify the ATO that you signed a contract

* The total you can withdraw across all years is $50,000 for a single person or $100,000 for two eligible individuals.

Pros and cons of using your super for a house deposit

Everyone’s financial situation is different. It’s important to think about your own financial goals before deciding if the FHSS scheme is right for you.

Pros

Earn returns

The associated earnings you can withdraw under the scheme and investment returns on your contributions may be more than you’d get in a bank savings account.

Potential tax savings

Salary sacrifice contributions to your super are generally taxed at 15%, plus there is a tax offset when you take it out. This could be lower than your normal tax rate, helping you to save money faster.

Buy a house with a partner

If you're buying the house with someone else (e.g. partner or flatmate), they can also add $15,000 per year to their own super to help save for the deposit.

Timeframes

You have 12 months to buy a house with the money (or 24 months with an extension).

Cons

Tax and risk

If you're on a lower income, there's much less tax benefit to storing money in super for a deposit.
Depending on your super investment options and risk profile, your remaining super could be lower if there's a change in the market.

Time limits

You must notify the ATO within 28 days once you sign a contract to buy or build a home.
If you don’t end up using the money you've taken out to buy a house within 24 months, the ATO may charge you an extra 20% tax.

Budget pressure

It takes up to 20 business days for the ATO to release your super for your deposit.
If you make extra contributions to your super, you'll have less take-home pay.

Limits on properties

You can only use it for a first home in Australia. It can't be for investment properties, vacant land (unless you have a contract to build), houseboats or caravans.