The First Home Loan Deposit Scheme allows first-time home buyers to enter the market earlier by buying with a deposit as little as 5% by guaranteeing up to 15% of the value of the house, which saves them paying Lenders Mortgage Insurance (LMI).
The program, which has already helped nearly 20,000 first-time buyers, is currently limited to 10,000 spaces per fiscal year on a first-in, best-dressed basis.
But the federal government will now allow an additional 10,000 first-time home buyers to participate in the program from October 6 to June 30, 2021.
But there’s a catch – this time around, applicants will only be able to apply for the program on the condition that they buy new builds.
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Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. Certain products will be marked as promoted, featured or sponsored and may appear prominently in tables regardless of their attributes. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, the repayment type, the loan term and the LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of October 17, 2022. See disclaimer.
Treasurer Josh Frydenberg said it was to help support the homebuilding industry.
“Helping another 10,000 first-time home buyers buy a new home through our first-time home loan deposit program will help support all of our trades throughout the supply chain, including painters, builders , plumbers and electricians,” Frydenberg said.
“In addition to the government’s HomeBuilder programme, these measures will support home building activity and jobs across the industry at a time when the economy and the sector need it most.”
New property price caps will also apply under the extended scheme.
First-time home buyers will be able to purchase new homes worth up to $950,000 in Sydney, $850,000 in Melbourne, $650,000 in Brisbane, $550,000 in Perth, Adelaide, Hobart, Canberra and Darwin.
First-time home buyers must apply for the program through one of the 27 lenders participating in the program to be eligible.
Housing Industry Association chief executive Graham Wolfe welcomed the news, saying the scheme has helped thousands of first-time homebuyers realize their dream of home ownership sooner.
“The fact that first-time homebuyer demand is so great that the government has decided to expand the scheme shows what HIA research has suggested from the start – Australians are still clinging to the dream of home ownership. home ownership and the security it brings,” said Wolfe.
“The additional 10,000 places for new homes and flats the government has put into this scheme will ensure that more first-time homebuyers reach their goal of owning a home sooner.”
The announcement comes ahead of Tuesday’s federal budget, which is expected to post a deficit of more than $200 billion.
The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.