What the FHLDS means for millennials
New data seems to have confirmed the government’s First Home Loan Deposit Scheme (FHLDS) is helping millennial’s achieve their home ownership aspirations.
Over 75% of the scheme’s applicants have been aged between 18 and 34, with 34% falling into the 25 to 29 brackets within that.
The house price cap in WA is $400,000 on average and it would seem first home buyers are finding their first home within that range.
Fresh research from Bankwest has illustrated how committed young Australians are to fighting for home ownership.
More than a quarter of those surveyed (27.1%) said they’d delay having children in order to afford their own home.
In a “blow to the stereotype”, more than half of the millennials surveyed said they’d sacrifice little luxuries (57.7%), experiences (56%) and big-ticket items (55.3%) to get on the property ladder, with over 20% communicating they were even willing to give up basic necessities.
Despite property price and affordability concerns, the age group was among the most optimistic when it came to feeling home ownership is an achievable goal.
It would seem the that home ownership and the “Great Australian Dream” is very much still alive. This is not a bunch of carefree kids ignoring the future for an indulgent moment; this is a group of people who have financial goals they want to achieve and are willing to sacrifice big to do that.
In summary – The Australian Government’s First Home Loan Deposit Scheme started on 1 January 2020 with 10,000 Scheme places released for this financial year through the National Housing Finance and Investment Corporation (NHFIC). Another 10,000 Scheme places will be released from July 2020.
5,000 Scheme places were made available to the major banks – CBA and NAB – all of which are now currently reserved. However, first home buyers can continue to engage with the major banks and their brokers as the reserved places may become available if applicants do not proceed to purchasing a property.
The remaining 5,000 Scheme places for the current financial year are being offered through 25 non-major lenders. Most of these Scheme places are still available to be reserved by potential first home buyers.
The enthusiasm with which first home buyers have embraced the scheme will encourage the government to at least consider increasing the number of places made available in 2021.
With four different areas of incentives, grants and rebates available it makes sense to speak with us or your broker to see what is available to you from all areas to see which if not all of the options you qualify for.