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Heard about the Australian Government’s new first home buyer deposit scheme, but not sure if you qualify or completely understand what it means for you? To help you, we’ve pulled together a brief overview of the Scheme
WHAT IS IT?
Set to commence on 1 January 2020, the Australian Government’s new First Home Loan Deposit Scheme (FHLDS) initiative is fantastic news for up to 10,000 Australians on low and middle incomes. Essentially, the FHLDS will grant eligible purchasers with the opportunity to purchase property on a deposit as low as 5%, with the Federal Government acting as guarantor for the remaining balance – around 15% of the typical 20% deposit that most lenders require in order to avoid insurance premiums paid on house deposits of less than 20%.
HOW DO I KNOW IF I’M ELIGIBLE?
There is an eligibility criterion that first home buyers will need to meet, and it’s largely based on marital status, income level, and age. The online blog article has more details and useful links to check your eligibility.
HOW DO I APPLY?
Applications for the Scheme are set to open on 1st January 2020 and will be lodged through endorsed lenders and their brokers.
IF YOUR INCOME IS LESS THAN $ 125000 PA AS SINGLE PERSON OR $ 200,000 AS A COUPLE , THEN YOU MAY WANT TO CONSIDER APPLYING FOR THE MUMNDAD.COM.AU HOME DEPOSIT ASSIST
CONTACT US NOW TO FIND OUT MORE AT WWW.MUMNDAD.COM.AU
IS THERE A PROPERTY PRICE MAX?
Yes, the Scheme sets out property price thresholds and vary for each State and Territory. In Victoria,
property price threshold is $600,000 for Melbourne and regional center (Geelong) and $375,000 for all other parts of the State.
CAN I STILL APPLY FOR OTHER GOVERNMENT GRANTS?
More good news for first home buyers! First home buyers can apply for the new First Home Loan Deposit Scheme from the 1st January 2020 and other Government grants. Speak to your financial advisor to find out more information and grants that you may be entitled to.
THE FINAL WORD
The purpose of the Governments, First Home Loan Deposit Scheme, is to support first home buyers to enter the property market earlier and to avoid additional charges. It has the potential to reduce the number of years it generally takes for buyers to save for their first property. However, applicants will need to be quick.
Mum n Dad has a wide selection of house and land packages under the $600,000 property price cap. enquire now