First Home Loan 50% Deposit Scheme Explained
In May 2019, the Morrison Government announced the first home loan deposit scheme to be administered by the NHFIC, 10,000 first home buyers will be able to take advantage of the scheme from 01 Feb 2020.
HOW DOES THE SCHEME WORK?
Up to 10,000 first home buyers on a first in first served basis will be able to buy their first home with a 5% deposit. The scheme will allow you to avoid Lenders Mortgage Insurance (LMI) as the Government will be guaranteeing up to 15% of the property value, similar to how parental guarantee works.
WHICH LENDERS ARE PARTICIPATING IN THIS SCHEME?
There are several lenders the government has chosen to provide the scheme for eligible first home buyers, There are 28 lenders including two of the big 4 banks.
FHBA mortgages will be able to assist with ensuring you have all the options so you can make an informed decision on which lender best meets your requirements.
Speak to an FHBA Coach to discover your best options.
WHAT IS THE ELIGIBILITY CRITERIA?
The scheme does have an income test that will need to be passed to ensure you are eligible for the scheme. The criteria is as follows:
- Singles – Income below $125,000 p.a
- Couples – Income below $200,000 p.a
The income is determined from the most recent financial year. So your 2018/19 financial year of the time.
There are also property price limits on the scheme to determine the maximum purchase price in your city and state, simply click here to speak to a coach
|State/Territory||Capital city and regional areas||Rest of state||Other|
|Jervis Bay Territory and Norfolk Island||$450,000|
|Christmas Island and Cocos (Keeling) Islands||$300,000|
HOW DO I APPLY?
At FHBA, we can ensure you get the best possible chance to be one of the 10,000 first eligible customers for this scheme.
Simply call FHBA or enquire to determine your best options for your home as we can also help you if you don’t qualify for this scheme.
First Home Buyers Australia