As many first home buyers struggle trying to get into the housing market, a new government scheme has been announced in the hopes of helping them take the first step on the property ladder.
The First Home Loan Deposit Scheme will lower the required home deposit from the current 20%, to just 5%. A government guarantee will fund the difference of 15%.
This government initiative will kick off on 1 January 2020. The First Home Loan Deposit Scheme is eligible to singles earning a maximum of $125,000 or couples earning up to $200,000 each year.
First home buyers could save around $10,000 in Lenders Mortgage Insurance under the Scheme.
Small lenders will be prioritised to help boost competition and values of home that can be purchased will be determined on a regional basis, reflecting different property markets across Australia.
The maximum number of home loans on offer under the scheme is capped at 10,000 per year.
Latest data from CoreLogic showed that house prices have been falling in Australia by 0.5 percent on a month-on-month basis and have fallen 8.4 percent on an annual basis as at April 2019.
Based on these figures, how much deposit does a first home buyer need?
The government will underwrite the home loans and serve as the guarantor by allotting $500 million through the National Housing Finance and Investment Corporation. Those qualified for the scheme will also get support for the entire duration of their loan or until they refinance.
Looking to buy your first home in Melbourne but feel you need a hand? Talk to me about how I can help you buy your new home faster, for less. It pays to have an experienced expert by your side.
To find out more about our first home buyer service, go here. Or give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
Copyright 2019 | All Rights Reserved
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
[…] More details on the first announcement of the scheme can be found here in our previous blog post . […]