First Home Loan Deposit Scheme gets another boost at the National Budget Announcement.
The First Home Loan Deposit Scheme (FHLDS) has been given another boost with the Treasurer, Josh Frydenberg, announcing in the Federal Budget an additional 10,000 places to become available for new homes only.
This is on top of the 10,000 places which became available on 1 July and the previous 10,000 places from 1 January.
The scheme allows First Home Buyers to purchase their first home with as little as 5% deposit, with the Government providing a guarantee on up to 15% of the purchase price of the home, thereby saving the costly fees for Lenders Mortgage Insurance. A genuine saving of many thousands of dollars, which would otherwise have to be found by borrowers.
The extension of the scheme would provides an opportunity for another 10,000 first-home buyers to get into the property market across Australia with just a 5 per cent deposit, but this time they would be required to buy or build a new home.
Caps on prices have been raised by as much as $250,000 in capital cities and regional centres, with amended limits for regional areas. This has been introduced with the goal to stimulate the construction industry and create roughly $800 million in economic activity.
The new price caps are now as follows:
NSW: Capital city/regional centre = $950,000 Rest of state = $600,000
VIC: Capital city/regional centre = $850,000 Rest of state = $550,000
QLD: Capital city/regional centre = $650,000 Rest of state = $500,000
WA: Capital city/regional centre = $550,000 Rest of state = $400,000
SA: Capital city/regional centre = $550,000 Rest of state = $400,000
TAS: Capital city/regional centre = $550,000 Rest of state = $400,000
ACT: Capital city/regional centre = $600,000
NT: Capital city/ regional centre = $550,000
The scheme has been extremely popular, with places in the previous two rounds snapped up very quickly.
In addition, for those constructing a new home, the FHLDS can be used with both the First Home Owner Grant and the HomeBuilder Grant, which combined, add another potential $40,000 to assist eligible first home buyers.
To find out more about the FHLDS and other available grants, call Bernie Lewis Home Loans on 8300 8300. But you better be quick as places will likely go fast.