First Home Loan Deposit Scheme
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What is the First Home Loan Deposit Scheme?
Were you looking to buy your first home with a 5% down payment?
The Federal Government’s First Home Ownership Loan Deposit Scheme, which once started last July 1, 2020, just opened up for limited spots only. Get yourself saved up $10,000 by waiving the lender’s mortgage insurance (LMI) fee. The scheme allows qualified first home buyers to purchase a house with only a down payment of five cents and waive the cost of LMI – saving you around $10,000.For this fiscal year, only ten thousand spaces are open.
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit scheme is an initiative the Australian government offers to assist First Home buyers in purchasing their first home!
If a First Home buyer wants to purchase a property under $20k with a deposit of less than 20%, they would generally have to pay lenders insurance which can cost up to $10000. Under the First Home loan deposit scheme, First Home buyers who are eligible can purchase their house (under certain conditions) with a deposit of less than $5.
The Australian government will guarantee the participating banks up to 15% of your down payment, which will fund through your home loan.
How do I apply for a First Home Loan Deposit?
You must apply for the First home loan deposit scheme through a participating lender. You cannot apply directly to the Australian government. However, you can use it as either a single applicant or a couple. To qualify for the First Home Loan Deposits, you must meet specific income requirements. Additionally, if you are applying as a couple, you must provide proof that you live together, such as a joint bank account. Finally, you will need to complete several documents, including a financial statement and a property valuation report.
Thinking of purchasing your home soon and want to apply for this scheme? Contact us today.
What are the requirements?
It is necessary to assess if you are qualified by making sure you have the complete requirements.
Income test
minimum age test
deposit requirement
PRIOR PROPERTY OWNERSHIP TEST
owner-occupier requirement
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