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.

 

Tags: ,