Reduced deposit for first home buyers’ scheme!

Over the last few days there has been a lot of chatter about the implementation of a new Government Scheme to help first home buyers! With so much information out there, we thought we would give you a quick snapshot of what we know so far! 

  • The scheme, which will be available from January 1, will be capped to a maximum of 10,000 loans every year, on a first come, first served basis.
  • Those 10,000 first home buyers can be from anywhere in country and numbers are NOT allocated across states.
  • Eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5%, instead of the usual 20%.
  • First homebuyers will only have to save 5% of a deposit under the plan, with the federal government to guarantee the difference of a standard down payment.
  • The banks will undertake the same credit checks, the same lending criteria that they would otherwise.
  • An income threshold will also apply. Singles on an income of up to $120,000 and couples with a joint income of $200,000 will be eligible.
  • Not all properties will be eligible to be purchased under the government’s home deposit scheme. The scheme will only underwrite loans for ‘entry properties’, excluding high-value properties.

There are property price caps:

State/territory

Capital city and regional centres

Rest of state

NSW

$700,000

$450,000

VIC

$600,000

$375,000

QLD

$475,000

$400,000

WA

$400,000

$300,000

SA

$400,000

$250,000

TAS

$400,000

$300,000

ACT

$500,000

-

NT

$375,000

-

This is fantastic news for people wanting to get into the market!

As with any financial decision, please seek professional advice from your bank, mortgage broker, accountant or financial advisor! To see if you are eligible for the first home buyers scheme below is the link to the Government webpage for more information.

https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/qld-first-home-grant/apply-first-home-grant