The Federal Government’s First Home Loan Deposit Scheme (FHLDS) came into effect 1st January 2020. Below is a summary of points from the scheme for eligible home loan borrowers :-
- If you have saved 5% of the purchase price the government can guarantee the remaining 15% of the deposit. Therefore no need for lenders mortgage insurance (LMI) thereby borrowing up to 95%. A Cost saving to the borrower/s
- Scheme is limited to 10,000 borrowers per year
- Loan payments must be on a Principal and Interest basis
- Eligible borrowers can’t be earning more than $125,000 a year or combined $200,000 for couples.
- Must be Australian citizens
- Need to be a first home borrower (if you own an investment property then NOT eligible)
- Various property types permitted including apartments, townhouses, house and land package and existing homes
- Couples must be married or in defacto relationships
- Property value caps. Each State has various Caps. Contact Paul for an update
- Other government schemes available – these include First Home Owner Grants and Stamp Duty concessions. These are State based.
- Majority of lenders are taking part in the scheme
If you wish to discuss your options, eligibility and how Paul can help you with this scheme, contact us today.