How much have you saved to form your 20% home deposit? If you have at least 5% on hand, you just might get your home sooner than expected. How? Enter the First Home Loan Deposit Scheme. It comes with many benefits for potential home buyers like you. Let me list those down.
- Avoid paying for the lenders mortgage insurance (LMI).
- You save up to $20,000 (the government will guarantee the remaining 15% of your deposit).
- You get to live in your home sweet home much quicker. (Think about it, putting away 5% of the home deposit is a lot quicker than saving for the whole 20%!)
Sounds like a pretty good deal, right? I’m sharing with you some other important details you need to take note of about first home loan deposit scheme.
- You should be a first home buyer to qualify.
- You need to get a pre-approval from a bank, based on your 5% deposit.
- If you’re single, your yearly income should not be more than $125, 000. (If you’re a couple, it should not be more than $200,000.)
- The value for eligible homes varies per city or region. If you live in the Metro area in Melbourne, the max purchase price is up to $600,000 only.
- The scheme begins on January 1, 2020.
- The entry to this scheme is limited.
At this moment, the government is yet to declare who gets access to this game and who doesn’t. (Despite the fact that the First Home Loan Deposit Scheme will roll in just a few weeks from now.)
So, what happens if you don’t get access? Your first home loan deposit scheme is bound to get declined. What this means is that you’ll need to put out more money― money which you didn’t even have in the first place. Unless you have extra savings, paying 20% of your total property value for the deposit is a challenge. Why wait and go about it the hard way when you can be a homeowner sooner?
Like I said earlier, gaining access to the First Home Loan Deposit Scheme saves you a lot of money― and time. I want you to be able to get a hold of this scheme. If you think so too, reach out to me via e-mail and send in your info. I will discuss how you can join this program as well as other tips every first-time home buyer needs to know.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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