If you’re a first home buyer, the perfect opportunity to get into the property market is now. With RBA cuts, changes in the real estate market and new government scheme, it will become easier for you to become a homeowner.
Currently, you will need a deposit of 20 per cent, which can take many Australians as much as 10 years to save up enough for their deposit, especially when the prices are increasing faster than the household income.
The First Home Loan Deposit Scheme will allow you to borrow a mortgage loan with as little as 5% deposit, helping many turn their property dreams into reality.
The First Home Loan Deposit Scheme is scheduled to come into effect by January 2020, now is the time for you to start planning for your dream home. The government will prioritise smaller lenders to boost competition among them and encourage better rates, so it’s an excellent opportunity for you to start looking into loan options that would work best for you.
Not only those looking for residential property are excited about this government initiative. There are plenty of first home buyers who will be able to take advantage of the new system to get an investment property.
How will the program work?
This initiative is meant to help 10,000 loans yearly get access to more borrowing power and options. For those struggling to save up for a 20 per cent deposit, the government will act as the guarantor allowing you to apply for a mortgage with a 5% deposit.
First home buyers who are single and earning up to $125,000, and couples who are earning up to $200,000 will be eligible to participate in the program. Beneficiaries of the initiative will be able to receive support for the lifetime of the loan or until the mortgage is refinanced.
If you’ve been thinking about buying your first home, want to see your options or want to get most out of the new government scheme, get in touch with one of our mortgage brokers to book a free consultation.
First Home Buyer Guide
Everything you need to know to buy a property in one easy guide. This guide is packed full of checklists and tools to help you make the right choice.