What is the First Home Loan Deposit Scheme?
This scheme will allow eligible first home buyers to purchase a home with a deposit of just 5 per cent of the value of the property. The Australian Government will guarantee the balance of the loan and cover Lenders Mortgage Insurance. The additional costs of buying a property are still applicable and vary depending on the state e.g. Stamp Duty, registration of Mortgage, legal and banking fees and charges.
What are the eligibility criteria?
Purchasers must be Australian citizens, at least 18 years of age and not have owned residential property in Australia before.
Singles can have a taxable income up to $125,000 and couples (either married or de facto) may be on a combined taxable income up to $200,000.
The scheme is available for most types of property purchases, but the property may not exceed the price threshold, which varies according to state and city/town.
What else do I need to know?
* There are only 10,000 first home loan guarantees available each financial year.
* The scheme can be used in conjunction with most other first home owner government schemes, grants and concessions.
* Loans must be principal and interest, and they must be for owner-occupied property only.
*Purchasers must have a deposit of between 5 and 20 per cent of the property’s value. The government will provide a guarantee for the gap between your deposit and 20 per cent of the property’s value, so you do not have to pay Lenders Mortgage Insurance.