10,000 More First Home Buyers Will Benefit from Loan Deposit Scheme Extension. Will you be one of them?
It may not be clear as to how you can benefit from the additional 10,000 allocations for First Home Buyers, where the Federal Government will guarantee your loan deposit, allowing you to purchase with a 5% deposit and save thousands on lenders Mortgage Insurance?
The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers in purchasing their first home. During the Federal Budget Release on October 6, Treasurer Josh Frydenberg announced that the scheme, which has so far this year aided 20,000 first home buyers, has been extended by another 10,000 spots.
Australians will be able to build or purchase a newly built home with a deposit of as little as 5 percent. The extension has also come with increase in the Property Price Caps that were previously in effect, allowing applicants to purchase and build homes up to $950,000, in Sydney, $850,000, in Melbourne, $650,000, in Brisbane, and $550,000, in Perth.
Treasurer Josh Frydenberg said that it is essential to conserve the residential construction industry as it plays a big part in boosting the Australian economy as it recovers from the coronavirus pandemic.
“Helping another 10,000 first home buyers to buy a new home through our First Home Loan Deposit Scheme will help to support all our tradies,” Frydenberg said.
In states where the virus is seen to come under control and movement increases, record-low lending rates and greater levels of federal government and state grants are set to push demand for housing credit. Capital chief economist of AMP, Shane Oliver, suggests that there is risk in increased debt, higher than otherwise prices and potential oversupply in the face of limited immigration.
The decision to extend the scheme comes after the National Housing Finance and Investment Commission predicted housing demand could fall by up to 230,000 dwellings over the next three years, due to border restrictions.
The additional 10,000 spots are available until 30 June 2021 or until they run out. If you are thinking about purchasing your first home, have a good job, have saved at least 5% deposit of the purchase of a new house and have a good credit record, then you could qualify for one of these spots.
Our specialists at Brisbane Home Loan are happy to assist you or you can register your name and be invited to a Free Seminar outlining the how First Home Buyers can benefit from Government assistance to purchase their first home. To register click on the button below.