This will allow 10,000 first-home buyers to purchase their first home each financial year with as little as a 5 per cent deposit, without incurring lenders mortgage insurance (LMI).
The aim of this scheme is to assist aspiring first home buyers to get onto the property ladder with a lower deposit than the normal 10-20 per cent. The savings LMI are approximately $10,000. First home buyers with an income of up to $125,000 or $200,000 a couple will be eligible. This scheme only allows for the first 10,000 eligible buyers to apply and is on a ‘first come, first serve’ basis. It is also capped at a purchase price in Sydney of $700,000.
I recently read that there is about 10 times that many first-home buyers in Australia every year, and with interest already high, potential borrowers may need to move fast or risk missing out – and experts worry it could push up prices more.
As of last Friday, 3,000 first-home buyers have reserved a place under the scheme.
This new scheme coupled with the rebound from the slump in 2019, interest rate cuts and renewed confidence, will see the first home buyer arena more competitive than previous years.
If your New Year’s resolution is to buy or sell and you want some expert advice, please give us a call on 1300 447 732 or if you need to sell, call Tony on 0413 696 722.
