The First Home Loan Deposit Scheme aims to help eligible Aussies buy their first home sooner.
It does this by providing a guarantee that will allow first home buyers, on low and middle incomes, to purchase a home with as little as 5 per cent deposit.
What does that mean?
Essentially the government will go guarantor so you won’t have to stump up lenders mortgage insurance which typically applies if you borrow more than 80 per cent of your home’s value.
Who is eligible? Here are some key points:
- It’s expected that income thresholds will apply, based on $125,000 per annum for singles and up to $200,000 per annum combined for couples. Income will be assessed in the financial year preceding the financial year in which the loan is entered into.
- The scheme will be available to owner-occupier loans on a principal and interest basis.
- Property price thresholds will also apply. In Queensland, a price cap of $475,000 applies to homes in Brisbane and major regional centres, including the Gold Coast and Sunshine Coast. Elsewhere in Queensland a price cap of $400,000 will apply.
Details of the scheme are coming together rapidly as the expected start date approaches, so stay tuned to the National Housing Finance and Investment Corporation website for new information as it comes to hand.
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