With the latest offering of loan deposit rounds already well underway, now is the time to find out how you can take advantage of the Federal Government lending schemes before it’s too late.
And if you’d like the idea of paying no Lenders Mortgage Insurance (LMI) and buying your first home with just a 5 per cent deposit, then you need to get in before the limited spaces have been taken.
In years previously, the 10,000 places released in each round in the The First Home Loan Deposit Scheme (FHLDS) have been snatched up within a few months, and we’ve had more than a few hopeful applicants reach out to us only to find out the opportunity has passed them by.
And if you’re doing it solo as a parent with dependent children, a similar scheme now allows you to purchase a home with just a 2 per cent deposit and without paying LMI, regardless of whether or not you’re a first home buyer.
The three Government schemes, released on July 1, announced a fresh round of 10,000 spots. Let’s take a closer look at each.
FIRST HOME LOAN DEPOSIT SCHEME (FHLDS)
Commencing at the start of 2020, The FHDS has helped thousands of Aussies get their foot in the doors of the property market, accessible to those wanting to build or buy their first home.
The scheme allows eligible first home buyers with just a 5 per cent deposit to buy a property without having to pay LMI. The scheme is backed by government guarantees (to a participating lender) up to 15 per cent of the value of the home you’re purchasing.
While it varies based on the cost of the home itself and deposit amount, not having to dip into your pocket for LMI means potential savings of between $4000 and $35,000. Depending on the property price and deposit amount.
10,000 First Home Loan Deposit Scheme places will be available to eligible first home buyers from 1 July 2021 to 30 June 2022.
The New Home Guarantee Scheme (First Home Buyers)
This scheme allows eligible first home buyers to build or purchase a new build with a 5 per cent deposit.
While it is a similar proposition to the FHLDS detailed above, one of the key differences is that the price caps are higher, to account for the extra expenses which come with building a new home.
The Family Home Guarantee Scheme (Single Parents)
This scheme enables eligible single parents with dependents to build or purchase a home with a deposit of just 2 per cent and without paying LMI.
But unlike the other two schemes detailed above, you don’t have to be a first home buyer to qualify for this scheme. So how does it work?
Well let’s take this as an example. Jeremy is a single parent with two young kids. Let’s say he’s found the perfect home for $460,000 but has struggled to save enough for the standard $92,000 deposit (20 per cent) required while paying rent. With the Family Home Guarantee, and pending a successful application with a lender, John could move into his dream home sooner, with just a $9,200 deposit (2 per cent).
BE QUICK, CALL US TODAY!
All schemes listed here have only 10,000 spots available for prospective homeowners for this scheme this financial year – and in previous years they’ve been allocated within a few months. So you’ve got to get in quick!
Avoid disappointment, get in touch with us today and we can help you determine which scheme is most suitable for you, and then help you apply for finance with a participating lender.