The federal government has announced that an additional 10,000 first home buyers will be eligible for a loan to build or purchase a home that has been newly built under the auspices of the First Home Loan Deposit Scheme. This scheme allows first time home purchasers to obtain a loan with a five per cent deposit without having to obtain Lender’s Mortgage Insurance
Twenty thousand home buyers have already used the scheme to purchase their first home this year and the scheme has been further enhanced by an increase in price caps from $750,000 to $950,000.
The rejuvenated scheme is unashamedly aimed at boosting jobs in the construction sector. The initiative combined with historically low lending rates and other federal and state government initiatives will help to maintain demand for housing credit in states where coronavirus has been largely contained
The initiative comes in the face of findings from the National Housing Finance and Investment Commission, the scheme administrator, predicting that state border restrictions could cause housing demand to fall by as many as 230,000 dwellings in the coming three years.
Experience suggests that demand for places in this scheme will be high. It is recommended that potential first home buyers get their applications for eligibility early to avoid disappointment. If you would like assistance with arranging your application for a place, please contact the team at Australian Finance Hub