5% deposit on a new home sound good? New loan scheme places released!
Hot off the press in December 2021! The Federal Government has re-released up to 4,650 spots on the Home Guarantee Scheme that allows first home buyers put down a 5% deposit and access to a 95% home loan from a panel of banks. Sound good? Here are some the details.
What is the scheme?
Usually, first home buyers with less than a 20% deposit need to pay Lenders Mortgage Insurance (LMI). That could mean over $14,000 as an additional expense on a loan of $475,000 for a $500,000 property. Under the First Home Loan Deposit Scheme (FHLDS), eligible first home buyers can purchase a modest home with a deposit of as little as 5% (lenders criteria apply). This is because the National Housing Finance and Investment Corporation (NHFIC) guarantees to a participating lender up to 15% of the value of the property purchased that is financed by an eligible first home buyer’s home loan. These spaces may not stick around for long, so for more information click the FHLDS link here to check your eligibility.
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