Attention FIRST HOME BUYERS… Have you heard about the First Home Loan Deposit Scheme (FHLDS)¹ to support eligible first home buyers purchase a home faster? If you meet the criteria – You Could be Saving Tens of Thousands of Dollars and be able to buy your dream first home sooner!
But you need to ACT FAST! With just a 5% deposit and no lenders’ mortgage insurance (LMI)… you could welcome the new year with a new home! But only if you are eligible – AND you are one of the 10,000 to be approved. The Australian Government announced a First Home Loan Deposit Scheme to support eligible first home buyers purchase a new home faster.
The scheme commenced on 1 January 2020, however in the 2020-21 Federal Budget it was announced that an additional 10,000 FHLDS places for the 2020-21 fiscal year would be available for eligible first home buyers building or purchasing a new home. The scheme allows eligible first-time owner occupiers to buy their first home with just a 5% deposit and no LMI payable. What is LMI and how does it work? Contrary to what many people think, LMI is designed to protect the lender, not the borrower, even though the borrower pays for it. The LMI is in place to protect the lender if the borrower can’t afford to meet their home loan repayments.
On a normal property purchase when you are required to pay LMI, it typically costs tens of thousands of dollars. And the GOOD NEWS For YOU… Under this First Home Loan Deposit Scheme, there is NO LMI payable. It has never been so easy to make your first home dreams come true.
Are you eligible?
Criteria:
• You are an Australian citizen (not available for permanent residents)
• You are over 18 years old
• You are a genuine first home buyer (if you own an investment property you won’t be eligible)
• You have at least a 5% deposit. You will still need to borrow the remaining 95% but you will avoid paying LMI
• You earn less than $125,000 a year as a single or $200,000 combined for couples.
IF you meet these criteria you need to contact us FAST! Other details:
• Finance can only be for owner-occupier loans with principal and interest payments
• The scheme began on 1 January 2020 and is limited to 10,000 borrowers per year – so act soon!
• The value of eligible homes under the scheme varies by state, city and region (see table below)
