Help is on the way for First Home Buyers!

The controversial new scheme was passed in parliament this week that aims to help First Home Buyers get into the their first property. It will help prospective buyers get into a property with a 5% deposit.

But it’s estimated that only 1 in 10 buyers will qualify.
The big savings are that the government will guarantee the home loan so that the borrower will not have pay the hefty LMI (Lenders Mortgage Insurance).
Full details about the scheme are still a bit sketchy, but here is what we know at this point:

  • The scheme is lmited to 10,000 buyers a year on a first in best dressed basis.
  • It will ‘guarantee’ loans for first time buyers with deposits as small as 5% to eliminate LMI.
  • There is an income cap of $125k for individuals and couples earning more than $200k.
  • There is a price cap in cities and regional areas. See the ranges in below table.
  • The scheme will start on January 1st 2020.
  • It will only be available through some lenders.

The Scheme’s property price caps:

State/territoryCapital city and regional centresRest 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

If you’re thinking about buying your first home or know someone who is, let me know. I can make sure you’ll have a good chance at being one of the lucky 10,000 who receive this.

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