The First Home Loan Deposit Scheme!
With the escalating real estate prices in Australia, saving up enough for a home loan deposit is often the biggest hurdle for many first home buyers. But that is all about to change with the Federal Government’s new $500 million underwriting deposit scheme that will greatly assist first home buyers to realise the goal of buying their first home/apartment or building new.
What does this scheme mean for first home buyers?
Under the First Home Loan Deposit Scheme, eligible first home buyers will be able to take out a home loan with a deposit of as little as 5 per cent of the property’s value. Further, no Lenders Mortgage Insurance will be payable (normally applies to deposits of less than 20%) which is a very big saving. The Government will guarantee the balance of deposit (15%) to the Lender but the buyer will still have to satisfy the eligible criteria required by the Lender for the loan to be serviced.
How can I apply?
The scheme comes into effect from the 1/1/20 and applications can be made to Participating Lenders (details of all participating lenders will be available on -line) and or through their Brokers on commencement of the Scheme.
Am I eligible?
To be approved for the Government guarantee, you will have to meet the eligibility criteria. First Home Loan Deposit Scheme is only open to you if you are:
· An Australian citizen (Permanent residents are not eligible)
· 18 years of age or above
· Single with a taxable income of up to $125,000 per year or couples with combined taxable earnings of up to $200,000 per year
· One of the first 10,000 to apply as the Federal Government has capped the number of eligible first home buyers at 10,000 per year
· Couples are only eligible if they are married or in a de facto relationship.
Here are some additional requirements for the Government scheme:
· You must be a first home buyer who has not previously owned a residential property
· You must intend to move into and live in the property as your principal place of residence
· The home loan you take out needs to be an owner-occupied loan with principal-and-interest repayments
· The scheme will only underwrite loans for ‘entry properties,’ excluding high-value properties
Opportunity knocks at “Tribute Apartments” Shelley
There are two remaining apartments at Shelley which qualify for a first home buyer to purchase under the deposit scheme as they are priced under the maximum entry price threshold of $400,000.
Located in the heart of the beautiful suburb of Shelley, Tribute Apartments spacious, and stunning design offer an affordable opportunity to purchase under the scheme.