First home buyers will soon be able to buy a home with a 5% deposit instead of the usual 20% that most banks require. The government would guarantee a balance of 15 percent, but the borrower would still have to repay it. The scheme, to be implemented in January 2020, aims to help low-income earners buy a property, but only 10,000 applications will be accepted.
Applicants under the
Scheme will be subject to eligibility criteria, including criteria in
relation to income thresholds and property prices. It is anticipated
that the income thresholds will be up to $125,000 per annum for
singles and up to $200,000 per annum combined for couples (assessed
in the financial year preceding the financial year in which the loan
is entered into). The Scheme is expected to apply to owner-occupied
loans on a principal and interest basis.
NHFIC intends to
provide fact sheets on the Scheme for borrowers and confirm the
income and property price thresholds once the Investment Mandate has
been finalised by the Government. Other limitations by way of pricing
thresholds also apply, depending on the state and regional centre.
For example, first-home buyers in Sydney are limited to a purchase
price of $700,000; Melbourne - $600,000; Brisbane - $475,000; Perth -
$400,000; ACT - $500,000; NT - $375,000; regional NSW - $475,000 and
regional Victoria - $375,000.
The same price
thresholds for capital cities will also apply to large regional
centres with populations over 250,000, including the Gold Coast,
Newcastle, Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong)
and Geelong.
Finance or mortgage
brokers provide property
investing advice on a range of borrowing options, however
choosing the right one is essential because they will do the legwork
and guide you through the loan application process.
See Full Article Here: New First Home Buyers Scheme
