As a First Home Buyer, you could benefit greatly from the various federal and state government grants and schemes. One such scheme by the federal government is the Federal Home Loan Deposit Scheme.
With an intention of boosting the overall economy in general and the real estate market in particular, the federal government has launched a scheme under which eligible first buyers can get a home loan without paying money for Lenders Mortgage Insurance (LMI). Under this scheme, the government will act as the mortgage insurer thereby guaranteeing home loans for eligible First home buyers. This can help one avoid LMI by paying up to 5% of the property value as a deposit. This is because the government is guaranteeing the difference amount (less than 20%). First home buyers, therefore, can save anywhere between A$10000 to A$30000 in LMI fees based on maximum regional price cap as part of this scheme. The additional advantage that one gets is that Eligible First Home Buyers will also be able to leverage other government schemes and grants such as the First Home Owners Grant, First Home Super Saver Scheme and stamp duty concessions.
This scheme was started by the government on 1st January 2020 with 10,000 scheme places, and an additional 10,000 places have been made available from 1st July 2020 for the financial year of 2020-2021. Since, there are limited slots and a higher number of First Home Buyers it is believed that only one in ten First Home Buyers will be able to utilise the scheme. Thus, it would be prudent for all interested first home buyers to apply for the scheme at the earliest.
The Federal Home Loan Deposit Scheme is primarily aimed at helping first home buyers from low and middle income groups purchase their dream property. The Cap on the property price varies from region to region based on the prevailing market prices. Under this scheme, you could purchase vacant land with a contract to build a house, an existing apartment or house or a home and land package.
The home loan deposit scheme has several requirements. Such as:
Mortgage brokers at Nfinity Financials can help you in applying for this scheme and to leverage other government schemes and grants as applicable.