What You Need To Know About The First Home Loan Deposit Scheme Requirements
What You Need to Know About the First Home Loan Deposit Scheme Requirements
What is the First Home Loan Deposit Scheme?
The First Home Loan Deposit Scheme is a government initiative designed to help first home buyers purchase a home with a smaller deposit. The scheme, which was announced in the 2019–20 Budget, allows eligible first home buyers to purchase a property with only a 5% deposit. It is administered by the National Housing Finance and Investment Corporation (NHFIC) and is available to Australian citizens and permanent residents who meet certain eligibility criteria.
Who is Eligible for the Scheme?
To be eligible for the scheme, you must meet the following criteria:
- You must have a household income of less than $125,000 a year if single, or $200,000 if coupled.
- You must be an Australian citizen or permanent resident.
- You must be at least 18 years of age.
- You must be purchasing your first home as an owner occupier.
- You must have saved at least 5% of the purchase price for your deposit.
What Properties Are Eligible for the Scheme?
The scheme is available for the purchase of established or new homes, off-the-plan properties, townhouses, and apartments. The purchase price of the property must not exceed the relevant property price caps. The property price caps vary from state to state and are reviewed annually. The current property price caps can be found on the NHFIC website.
What Documents Do I Need to Provide?
To apply for the scheme, you will need to provide the following documents:
- Proof of identity (e.g. passport, driver's licence, birth certificate)
- Proof of income (e.g. pay slips, tax returns)
- Proof of savings (e.g. bank statements)
- Proof of residence (e.g. utility bills)
- A copy of the signed contract of sale for the property.
How Do I Apply for the Scheme?
To apply for the scheme, you can apply directly through a participating lender or through a mortgage broker. You can find a list of participating lenders on the NHFIC website.
What Are the Benefits of the Scheme?
The main benefit of the scheme is that it allows first home buyers to purchase a home with a smaller deposit. This can help to reduce the amount of money you need to borrow and can potentially reduce the amount of interest you will pay over the life of the loan. It can also reduce the amount of time it takes to save a deposit, as you may not need to save as much.
How Can I Find Out More?
For more information about the scheme, including eligibility criteria, property price caps, and participating lenders, visit the NHFIC website. You can also contact your local real estate agent or mortgage broker for advice.
Conclusion
The First Home Loan Deposit Scheme is a great way for first home buyers to purchase a home with a smaller deposit. However, it is important to make sure that you meet the eligibility criteria and have the necessary documents in order before applying. For more information, visit the NHFIC website or contact your local real estate agent or mortgage broker.
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