It’s no secret that saving for your first home is tough work and can take many years of frugal living to get you there. But it doesn’t have to be that hard. This is because the Australian Government has just launched a new scheme to help first home buyers buy their first home sooner, with less money coming out of your pockets for a deposit.
The First Home Loan Deposit Scheme allows eligible first home buyers to purchase a home with a deposit of as little as 5%, with the government guaranteeing the remaining 15%. This means that not only do you have less to save for a deposit, you also don’t have to pay Lender’s Mortgage Insurance which typically comes with not having a 20% deposit.
So, who is actually eligible?
We’re super excited about this scheme, and you should be too, but before you apply there are a few eligibility criteria and property price caps you need to be aware of. Some key criteria include:
- You’re buying a residential property that you will live in;
- You’re a first home buyer;
- You’re an Australian citizen;
- You’re at least 18 years of age.
There are also limits on how much you earn (less than $125,000 in a tax year or, as a couple, $200,000) and the property purchase price depending on which state or region you are buying your first home.
You must also have saved a minimum 5% deposit plus the other upfront costs and governments fees (e.g. stamp duty) that make up the full cost of buying a house. Just like any home loan application, it helps if you can show your lender you have a savings history.
Both singles and couples can apply for the scheme, keeping in mind that as a couple you need to be either married or in a de facto relationship to be eligible. Both of you must be first home buyers as well.
How do I apply?
The first place to start is to check you meet all the requirements to be eligible for the First Home Loan Deposit Scheme. If you meet all the requirements, you’ve saved a 5% deposit plus any additional fees and are ready to start your journey to home ownership, register your interest here. There are limited spots available under this scheme, which means once they are taken up, the scheme will not be available until a new allocation is released. Once you’ve registered, one of our Home Loan Advisers will be in touch to help you through the application process. You will then have 90 days from approval to purchase your first home.
Are you ready to kick start your home buying journey? Register your interest today.