The First Home Loan Deposit Scheme 2020: What You Need To Know
The First Home Loan Deposit Scheme 2020: What You Need to Know
A Guide to Taking Advantage of Government Assistance
The First Home Loan Deposit Scheme 2020 is a government initiative that is intended to help first home buyers get into the property market. The scheme provides eligible applicants with a guarantee that will allow them to purchase a home with a deposit of as little as 5%. This guarantee eliminates the need for lenders mortgage insurance, which can be costly and can add significantly to the already high cost of purchasing a home.
Who Is Eligible for the Scheme?
To be eligible for the scheme, applicants must:
- Be at least 18 years of age
- Be an Australian citizen or a permanent resident
- Have an income of less than $125,000 per year (for single applicants) or $200,000 per year (for couples)
- Have saved at least 5% of the purchase price of the property
- Meet other eligibility requirements
Applicants must also be buying or building a home to live in as their primary residence, and not for investment purposes.
What Is the Process for Applying for the Scheme?
If you believe you meet the eligibility criteria for the scheme, the first step is to contact a participating lender. The participating lenders are banks and other financial institutions that have signed up to offer loans under the scheme. You will need to provide your financial information to the lender and they will assess your application and determine if you are eligible.
What Are the Benefits of the Scheme?
The main benefit of the scheme is that it allows first home buyers to purchase a property with a smaller deposit than what would normally be required. This can make it easier for first time buyers to get into the property market, as they do not have to save as much money for a deposit. In addition, the scheme can also help to reduce the cost of purchasing a home, as lenders mortgage insurance is not required.
Are There Any Downsides to the Scheme?
The main downside to the scheme is that it is only available for a limited amount of time, and the participating lenders may impose additional requirements or restrictions on the loans they offer. Additionally, the scheme may not be suitable for everyone, as the eligibility requirements may be difficult to meet.
Where Can I Find More Information?
If you are interested in applying for the scheme, you should contact a participating lender for more information. You can also visit the website of the National Housing Finance and Investment Corporation (NHFIC), which is the government body responsible for administering the scheme, for more information.
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