In February I wrote about the launch of the Federal Government’s First Home Loan Deposit Scheme, a program designed to support eligible first home buyers, who have managed to save a 5% deposit, buy a home sooner. The scheme proved to have a great take-up rate, with the initial 10,000 places fully subscribed, meaning a significant number of first home buyers have now been able to achieve their dream of home ownership.
On July 1st the Government released a further 10,000 places in the scheme which are now available to be taken up. The scheme is managed by the National Housing Finance and Investment Corporation (NHFIC) and allows first home buyers, who have to meet certain eligibility criteria, to purchase a home with only a 5% deposit required. They are able to avoid having to pay the additional cost of mortgage insurance, normally required for any loan where the borrower is unable to contribute a 20% deposit, which saves them a significant amount of money that would otherwise be incurred.
To be eligible a first home buyer applying as a single applicant cannot earn more than $125,000, a couple no more than $200,000 combined, and the purchase price must not exceed $600,000.
If you are eligible to participate you will need to be quick to reserve your place before the allocation is fully exhausted. As part of the process you will have to ensure your tax return is completed for the 2019/20 financial year, so please get your return completed as soon as possible. The NHFIC won’t reserve your place in the scheme without this step being completed as they will require a copy of your Tax Assessment Notice to determine your eligibility.
For more information regarding the FHLDS and to confirm your eligibility please contact our office directly, or you can log in to the FHLDS website https://www.nhfic.gov.au/what-we-do/fhlds/