This page was updated on 10th December 2019 and is continually being edited as new information becomes available. This page is a guide and does not take the place of professional information.
You can download the government Fact Sheet here.
What is the First Home Loan Deposit Scheme exactly?
It is a government-funded grant to help first home buyers. First home buyers will be able to get a mortgage with just 5% deposit, instead of 20%. It will also offer savings on lenders mortgage insurance.
For up to 10,000 people, the Government will guarantee the additional amount needed to reach a deposit of 20 per cent
Those first home buyers will be exempt from having to pay Lenders Mortgage Insurance
The scheme will kick off from January 2020
Banks will undertake the same credit checks, using the same lending criteria that they would otherwise.
Who is eligible for the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is open to first home buyers with an income of up to $125,000 (or $200,000 for a couple), who have saved 5% of the value of the home. You can find a tool to determine eligibility here.
How much could potential recipients save?
It’s being suggested that recipients could save around $10,000
Are there any limits or price caps?
Yes, price caps differ per state and whether people are trying to buy a house in a capital city, large regional centre or regional area. At the time of writing, they are:
NSW – City or large regional centre: $700,000 / Other areas: $450,000
Victoria – City or large regional centre: $600,000 / Other areas: $375,000
Queensland – City or large regional centre: $475,000 / Other areas: $400,000
Western Australia – City or large regional centre: $400,000 / Other areas: $300,000
South Australia – City or large regional centre: $400,000 / Other areas: $250,000
Tasmania – City or large regional centre: $400,000 / Other areas: $300,000
ACT – $500,000
Northern Territory – $375,000
How can I apply for it?
The scheme comes into effect from 1st January 2020. Your lender will be able to advise you on the specific processes. However, since it is limited to 10,000 recipients, it is best to be organised and have your property locked in so your application can be submitted as soon as they open. Applications are not open yet.
Full information on how to apply can also be found here.
We’ve negotiated special deals with several developers so you can take advantage of this scheme.
With just 10,000 First Home Loan Deposit Scheme Grants on offer and over 110,000 first home buyers, it’s important to make sure you have everything in place so you do not miss out on this opportunity.
Our Director Andrew has negotiated with several developers so that you can lock in your property now, but not transact till 2020 to make sure you get the new Government Grant.
Lock in your property today – book a no-obligation call with Andrew to discuss today.
This article is being updated as new information is announced.
This information has been taken from the above websites. Property Association is not liable for any errors, changes or omissions that have not been included in the source links or included in the text above.