THINKING ABOUT BUYING YOUR FIRST HOME? With the federal government's new First Home Loan Deposit Scheme about to come into play is now the right time for you to buy that first home?
WHAT IS THE FEDERAL GOVERNMENT’S FIRST HOME LOAN DEPOSIT SCHEME?
The First Home Loan Deposit Scheme is a new initiative of the Australian Government to support eligible first home buyers purchase a home sooner.
It will provide a guarantee that allows eligible first home buyers purchase a home with a deposit of as little as 5 per cent. Typically, if you need to borrow more than 80% of the value of a property you have to pay Lender Mortgage insurance (LMI). LMI is expensive. e.g. If you bought a $500,000 property with a 5% deposit ($25,000) you'd be looking at over $15k LMI premium. The First Home Loan Deposit Scheme removes this cost, so you only have to save the minimum 5% and no LMI is payable.
However, there are some catches:
You will need to be a first home buyer and earning $125,000 ($200,000 for a couple) a year or less. There are also caps on how much the property can be worth
Most importantly the scheme is limited to 10,000 borrowers.
This means if you are interested you will need to get in quick as this limit is expected to be exhausted within the first month of the launch of the program on 1st January, 2020.
The full details of the scheme have not yet been announced but are expected to be any day. If this is something that may be of interest to you, give me a call on 0411 849 804 and we can get all your ducks in a row. That was you are ready to pounce as soon as we know more details and the floodgates truly open.
For more details download one of the First Home Loan Deposit Scheme - Fact Sheets here and if you have any questions let me know.
Message from CAtherine
Occasionally I come across an interesting article to do with Home Loans. I thought I'd share some of these with you here.