On your marks, get set, go! The race is on for limited spots in the federal government’s First Home Loan Deposit Scheme, which kicked off again on July 1.
The scheme allows eligible first home buyers with only a 5% deposit to purchase a property without paying for lenders mortgage insurance (LMI) – which can save you up to $10,000.
But here’s the catch: only 10,000 spots are available this financial year.
That might sound like a lot but 3,000 spots went in the first 10 days last time.
What exactly is the First Home Loan Deposit Scheme (FHLDS)?
Usually, first home buyers with a deposit of less than 20% have to fork out for LMI when taking out a home loan.
But under the federal government’s FHLDS, eligible first home buyers with only a 5% deposit can purchase a property without having to pay for LMI.
Now, it’s important to note this is not a handout – it’s a government guarantee to help first home buyers break into the property market with a smaller deposit.
But the good news is that it is available alongside other state and federal government first home buyer schemes that are currently running.
More details on eligibility and property price caps can be found on the scheme’s website http://www.nhfic.gov.au.
Let us run you through the details
If you’re thinking about purchasing your first home soon and are considering applying for this scheme – give us a call today.
While 10,000 spots might sound like a lot, the starter’s gun has already gone off and hundreds of first home buyers could apply for the scheme every day in the first two weeks alone.