The Scheme is a new initiative from the Australian Government designed to support eligible first home buyers purchase a home sooner. The National Housing Finance and Investment Corporation (NHFIC) will provide a guarantee for eligible first home buyers on low and middle incomes so that they can purchase a home with a deposit of as little as 5%.
There is a catch however! The Scheme will only support up to 10,000 home loans each financial year, starting from 1 January 2020, and NHFIC have appointed a panel of 27 lenders in which you must obtain your finance through. To apply for the scheme, you would lodge your application through one of the participating lenders and their authorised representatives.
What makes you eligible:
• Australian citizens who are at least 18 years of age. Permanent residents are not eligible;
• Applicants must not have previously owned or had an interest in a residential property, either separately or jointly with someone else (this includes residential strata and company title properties, regardless of whether it was an investment or owner-occupied property and whether it was ever lived in);
• Only singles with a taxable income of up to $125,000 per annum and couples with a combined taxable income of up to $200,000 per annum may be eligible;
• Couples are only eligible for the scheme if they are married or in a de facto relationship. Other persons buying together, including siblings, parent/child or friends, are not eligible;
• The Scheme will only apply to Owner Occupied home loans paid on a principal and interest basis (property investment and Interest Only loans are excluded);
• Applicants must have a deposit of between 5% and 20% of the property’s value; and
• Your maximum property purchase price is subject to the suburb and postcode of your new property. You can check the property price threshold for your property’s suburb and postcode using NHFIC’s property price threshold tool.
For full information in relation to the scheme, you can go to the First Home Loan Deposit Scheme website at: https://www.nhfic.gov.au/what-we-do/fhlds.
If you have any questions in relation to the First Home Loan Deposit Scheme or in relation to your Contract whether you are a First Home Owner or not, please feel free to call our office on 07 3236 2852 and one of our team will be able to help you out!