First Home Loan Deposit Scheme Explained:
- A Federal Government scheme to allow first home buyers to purchase a property with a deposit as little as 5 per cent will operate on a “first-in, best-dressed” basis
- Save 5% deposit of your property and government will guarantee the remaining 15% of the deposit. You still borrow 95%, but avoid LMI.
- 10,000 first home buyers on low and middle incomes enter the market each year from January 2020
- The program will be open to singles with a taxable income up to $125,000 per year and couples earning less than $200,000 per year, and will apply to owner-occupied loans on a principal and interest basis.
- Mortgage need to be owner occupied with principal and interest (P&I) repayments.
- More information to come on which lender will be involved and what the interest rates will be.
- Price thresholds apply.
Scheme’s 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 | – |
For further information, please contact us!
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