Second round of Government First Home Loan Deposit Scheme has kicked off
From 1 July 2020, 10,000 new places under the Australian Government’s First Home Loan Deposit Scheme (FHLDS) became available for the 2020-21 financial year, with the same 27 lenders participating as in the first round.
Under the Scheme, eligible first home buyers can purchase a home with a deposit of as little as five per cent.
Through the National Housing Finance and Investment Corporation (NHFIC), the Government guarantees up to 15 per cent of the assessed property value to a participating lender.
Applications from 1 July will require a 2019-20 Notice of Assessment from the Australian Taxation Office to demonstrate that their taxable income is no more than $125,000 for individuals and $200,000 for couples.
Both the main lenders – CBA & NAB have now started wait lists for this Scheme, but there are still second tiered lenders with reservations available. Did you know 44% of applications were made through mortgage brokers?
All Government Grants & Stimuluses
The West Australian Government unveiled a $125 million stimulus package for the State’s home building sector, providing cash grants to prospective home buyers on top of the Federal Governments existing stimulus & schemes.
Up to seven different Schemes currently available:
- State Building Boost Grant $20,000
- Federal Home Builder Grant $25,000
- First Home Buyer Grant Cashback $10,000
- First Home Buyer Stamp Duty Relief up to $430k purchase price
- Home Buyer Assistance Account up to $2000 up to $400k purchase price
- 75% Stamp Duty Rebate – off the plan purchases
- First Home Loan Deposit Scheme – Government Guarantee Lenders Mortgage Insurance
Whilst there are many options available – it is still imperative to work on your own personal circumstances and plans. Then look at what options, grants and schemes work for you.
With all the focus on the new & building market – it does mean the existing market may hold some great opportunities for those entering the established market. Depending on the cost of building & the cost of the land including the interest during building – you may find what you are looking for in the existing market.
There are different requirements/qualifying rules for each grant.
Timing or lodgement of the application generally is considered when construction commences with significant earthworks, excavations or physical building works.
So, our recommendation – talk to us – let us help you navigate all your options and look at your personal situation to tailor make the best way forward for your needs and plans, as well as walk you through the whole process.