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 an 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 the 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 extension will available until 30 June 2021, but if you are thinking about purchasing your first home, please reach out to one of our team members, as the extension is set to exhaust quickly.
HOW CAN WE HELP YOU?
There has been considerable interest in this Scheme and it will be important to get in early as the extended allocations are limited to just 10,000.
The Specialist at Brisbane Home Loans can review your financial position and advise you if qualify allowing you to purchase a property with just 5% deposit and avoid paying thousands in lender mortgage insurance.
If you are ready to go, we will assist you to prepare an application ready to be lodged once the applications for the Federal Grant are ready. We will also assist guide you with details of the State Grant and National Grants that collectively can provide you with a $40,000 contribution to your dream home. Call Jordan or Dan on 3889 9250 to make an appointment.