First Home Buyers Deposit Scheme
Are you a first home buyer and heard about the new government scheme to help you enter the market? Here we break it down for you and look at what options you have as a first home buyer.
What is it?
10,000 places have been opened up in the Government’s First Home Buyers Deposit Scheme and as at the 1 February 3,000 had been snapped up. The scheme allows first home buyers with a deposit as low as 5% to enter the property market. A further 10,000 places will be made available after 1 July 2020.
How does it work?
The Government goes guarantor on your loan. This means that you can enter the market with a lower deposit and avoid paying Lenders Mortgage Insurance. Lenders Mortgage Insurance is paid by the borrower when their deposit is under 20%.
Who can enter the scheme?
The scheme is limited to:
- Singles earning less than $125,000
- Couples earning less than $200,000
- There are also maximum property price restrictions in certain areas – for WA capital city it is $400,000 and regional WA is $300,000
- Not owned a property before
- Minimum deposit of 5%
To check if you are eligible click here – https://www.nhfic.gov.au/what-we-do/fhlds/eligibility/
Which banks are part of the scheme?
The scheme was first opened to Commonwealth Bank and National Australia Bank. They have 5,000 places reserved which have almost been exhausted.
There are now another 25 smaller lenders on the panel with the remaining 5,000 places.
How do I apply?
Speak to your Award Winning MFSA Finance Specialist. They will help you submit an application through the lender that’s right for you. You only have 14 days to have the loan conditionally approved or you may lose your spot. So it is best to have one our team guide you through the process.
What are my options if I am a first home buyer and I am not eligible for the scheme?
If the scheme doesn’t work for you or you aren’t eligible then you may have some other options to enter the property market.
Whatever your situation is, put your best foot forward, with our award winning finance team and call us today on 1300 857 762.
To see the scheme in more detail download this helpful fact sheet and frequently asked questions – https://www.nhfic.gov.au/media/1236/fhlds-fact-sheet.pdf
