It’s the beginning of a new year, which means fresh starts, New Year resolutions and new goals. If one of those goals happens to be buying your first home, you may just be in luck.
From the first of January, 2020, first home buyers will be able to apply for the Morrison Government’s First Home Loan Deposit Scheme. Set up in response to the declining availability of affordable housing, $500 million dollars has been allocated to the initiative.
What is it?
The scheme will assist a maximum of 10,000 eligible home loan borrowers each financial year, allowing first home buyers to purchase their first home with just a 5% deposit, the government will cover any remainder, including mortgage insurance fees.
How do I apply?
It must be noted that this scheme is only available to those who meet the following criteria.
- The scheme is means tested, and you are only eligible if you earn $125,000 per annum or less as a single, or a combined $200,000 or less per annum as a couple.
- The house being purchased must be worth:
- $700,000 in Sydney
- $600,000 in Melbourne
- $475,000 in Queensland
- $400,000 in Western Australia
- $400,000 in Adelaide
- $500,000 in Australian Capital Territory
- $375,000 in Northern Territory
- $400,000 in Hobart
You can check further eligibility criteria HERE.
What banks are participating?
Major mortgage lenders are said to be taking part in the scheme from January 1, while some other financial institutions will join in from February 1. National Australia Bank and Commonwealth Bank are current participants in the scheme.
You might also like:
Mortgage words all first home buyers need to know
5 common legal issues all first home buyers should be aware of
Affordable suburbs for first home buyers
Related stories
Native ad body.
 4 best places to downsize in luxury across Australia
Native ad body.
Native ad body.
