First Home Loan Deposit Scheme Rolling Out!
You may have heard the government has announced a new scheme to help first home buyers into their first home.
Well, it’s rolling out from the 1st of January 2020!
Finally, we are able to shed some light on some of the detail of how this will actually work. We are already taking appointments for January to start the process for our first home buyer clients.
You can book an appointment with one of our mortgage brokers by clicking HERE.
Here are a few quick facts for you.
- The scheme is limited to 10,000 loans each financial year. This is Australia wide, so we expect these to be swallowed up quick smart.
- There are limitations on what the max House Price will be depending on which state you live in. For example in TAS, the max house price is $400K in major centers and immediate surrounds and $300K elsewhere in TAS.
- You still get the other First Home Buyer benefits. For example, you’ll only pay half the transfer duty for an established house under $400K. Or if you are buying a brand new home or building a new home, you’ll still receive the First Home Builders Grant of $20,000.
- There is a good selection of lenders that have signed onto the scheme, so luckily you won’t be limited to just a couple of banks to choose from.
- You need to have saved at least 5% of the property price you are going for. In TAS, worst case with a price of $400K, that means you need to have saved $20,000 to be eligible.
- The government then “guarantees” your loan for the rest of the money required which saves you from having to pay Lenders Mortgage Insurance (LMI). From what we understand, this will work in a similar way to a Family Guarantor Loan. Except the government is the guarantor in this case.
There are some strict guidelines that you need to check out to see if you are eligible. You can check out the detail by visiting the FHLDS website HERE.
Contact us below in order to book in your appointment for January.