Spurred on by the ongoing COVID-19 health crisis, the Australian government has never worked harder to help Australians purchase their first home.
The First Home Loan Deposit Scheme in one initiative, in particular, helps first homeowners get their hands on their first home by helping eligible applicants secure a home with just a five per cent deposit without the need for lender’s mortgage insurance.
Eligible applicants will receive a limited guarantee from the Australian government.
The Scheme allows for 10,000 loans each year, with NAB offering up to 5,000 of these loans per year.
There is a range of other lenders also offering these loans.
How does the First Home Loan Deposit Scheme work?
The Scheme allows eligible applicants to purchase a property for under the specified price, depending on the region you are looking to purchase in, with just a five-per-cent deposit without attracting lender’s mortgage insurance (LMI).
For Victoria, the three main regions and price caps are:
- VIC – Capital City – Price Cap: $600,000
- VIC – Regional Centre (EG: Geelong) – Price Cap: $600,000
- VIC – Other – Price Cap: $375,000
In real-life terms, this means property in Melbourne or the surrounding suburbs could be purchased for $600,000 with just a $30,000 deposit.
Without the scheme, a 20 per cent deposit of $120,000 would typically be required to purchase the property without attracting lender’s mortgage insurance, while most lenders would need a 10 per cent deposit even with LMI.
Want to check your eligibility? You can do that via the government’s National Housing Finance and Investment Corporation website HERE.
Be sure you check your eligibility either as a single person or as a couple depending on your circumstances.
What to look out for when purchasing your first home.
Purchasing a property isn’t something you do every day.
And if this is your first property, chances are you’ve spent a lot of time and effort to save the money you need – even if just five per cent – to make a deposit.
With that in mind, it’s crucial you do your due diligence on a property before signing a contract or attending an auction with the intent to buy.
One of our qualified and experienced conveyancers in Melbourne can help you make sense of the contract and at Tick Box Conveyancing our practice manager Tegan Distel specialises in helping first home buyers achieve their property dreams.
How pre-purchase advice can help first home buyers
Whether you are just starting out with the process of finding the property you want to buy or you’ve found the one you are very interested in purchasing, a pre-purchase report from Tick Box Conveyancing can help ensure you are well informed throughout the decision making process.
A Tick Box Conveyancing pre-purchase report will:
- Provide you with a plain-English breakdown of the contract and other sale documents
- Inform you of any conditions and terms of the sale
- Inform you of any caveats, easements, restrictions, or other notices affecting the title
- Inform you of outgoings including owners corporation fees (if applicable)
We strive to help first home buyers approach the property market with confidence.
We complement our house conveyancing services by exposing our own first home buyer clients to our wide range of fellow property professionals.
Tick Box Conveyancing uses its finely curated network of referrers and fellow professionals to ensure our first home buyer clients have access to all the advice and services they need such as:
- Mortgage brokers
- Buyers Advocates
- Real estate agents
- Accountants
In doing so, we can help our clients surround themselves with tried and tested professionals who can help them navigate the property ownership journey for the first time from start to finish.
If you need help purchasing your first home, please contact Tick Box Conveyancing’s first home buyer specialist Tegan Distel by calling the office on 1300 363 165 or filling out the enquiry form on our Contact Us page.
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