With the introduction of the Australian Governments newest initiative, the First Home Loan Deposit Scheme, it is an exciting time for first home buyers in the property market.
The First Home Loan Deposit Scheme will support up to 10,000 first home buyers per financial year with guaranteed loans. Eligible buyers can borrow with as little as a 5% deposit and avoid lenders mortgage insurance, while the government guarantees the remaining 15% deposit. Helping first home buyers to purchase a home sooner.
What type of property can be purchased under the Scheme?
- It must be a residential property
- An off-the-plan apartment or townhouse
- An existing house, apartment or townhouse
- A house and land package
- Land together with a separate contract to build
- Property value must not exceed $500,000 (for purchases in ACT)
What are the requirements for an eligible buyer?
- Australian citizens who are over 18 years of age
- Singles with a taxable income of up to $125,000 per annum/ Couples with a taxable income of up to $200,000 per annum (previous financial year)
- Couples are only eligible if they are married or in de-facto relationship. Other persons purchasing together, such as siblings, are not eligible for the scheme
- Applicants must intend to be owner occupiers of the purchased property
- Applicants must be first home buyers who have not previously owned property in Australia
Eligible borrowers can use the First Home Loan Deposit Scheme in conjunction with other Government Incentives, like the Stamp Duty Concession. The guarantee is not a cash payment or a deposit for your home loan.
For further details on the First Home Loan Deposit Scheme please visit:nhfic.gov.au/what-we-do/fhlds/