First Home Loan Deposit Scheme
A new government initiative for first home buyers has launched today. 10,000 first home buyers across Australia will be able to buy their first home using only a 5% deposit, and not requiring mortgage insurance.
At this stage, only two lenders are permitted to offer these loans. In February, 25 non-major lenders will also offer these loans. You may be eligible if you can satisfy all of the following criteria:
1. You have never owned property in Australia
2. You earn under 125K, or 200K as a couple
3. You are over 18, an Australian citizen, and have a Medicare card
4. You are purchasing an owner occupied home, and will be paying principle and interest repayments 5. You have the 5% deposit saved, and held in your bank account for at least 3 months
6. The purchase price is under the maximum threshold for each city/state*
*700K for NSW - Sydney metro, Newcastle, Lake Macquarie, Illawarra. 450K for the remainder of NSW 600K for VIC - Melbourne metro and Geelong 375K remainder of VIC 475K for QLD - Brisbane metro, Gold Coast and Sunshine Coast 400K for the remainder of QLD for other states, please contact me for details Not all lenders are permitted to offer this incentive, and there are limits set for each lender. If either the 10,000 applicants is exceeded, or the purchase price of your intended first home exceeds the above price limits, you may still be eligible for a home loan with only a 5% deposit, but you will be required to pay lenders mortgage insurance. To apply, there is a form to complete, and this will be assessed to confirm your eligibility. If the lender has not exceeded its quota, you will be issued with a reference number. A loan application must then be filed as soon as possible after you have been issued with that number. You have three months to then find your first home. For more information, or to apply for a reference number to guarantee your spot, please call JBL Home Loans on 0414670151 or email on firstname.lastname@example.org.