First Home Loan Deposit Scheme
The federal government’s First Home Loan Deposit Scheme will guarantee mortgages for first home buyers who have only saved a 5% deposit, effectively helping them buy sooner without paying lenders mortgage insurance premiums.
Here’s how first home loan deposit scheme works:
- If you have saved 5% of the purchase price of your property the government will guarantee the remaining 15% of the deposit.
- You still need to borrow 95%, but you can avoid LMI.
- Eligible first home buyers can't be earning more than $125,000 a year ($200,000 combined for couples).
- Your mortgage needs to be an owner-occupied loan with principal-and-interest repayments.
- Access to the scheme is limited to the first 10,000 borrowers, nationally (compared to estimated demand 63,000 per year.)
- The scheme will be limited to properties sold for less than $700,000 in Sydney, $600,000 in Melbourne and less in smaller cities and regional areas.
- The scheme is anticipated to start on 1st January 2020. Please click here to access Government web page: https://www.nhfic.gov.au/support-buy-home/property-price-caps
If you do not have 5%, or you miss out; with AffordAssist you may purchase with savings of as little as $10,000
This calculator compares AffordAssist against other; 5%, 10% and 20% deposit options, showing potential savings and potential future wealth by entering the market sooner.
AffordAssist is an affordable housing program specifically designed to meet the needs of first-home buyers. It is a corporate solution offered alongside government initiatives with a single purpose to increase first-home ownership in Australia.