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First Home Buyers Government Support

Updated: Dec 17, 2019

From the 1st January 2020 the Federal Government will introduce additional assistance to first home buyers through the introduction of a Government Guarantee scheme . The scheme will be administered by the (NHFIC) National Housing Finance and Investment Corporation. The NHFIC will operate the scheme in conjunction with an appointed panel of lenders , which will be announced in the coming weeks . That panel is expected to include both major recognized lenders & smaller second tier lenders. You can read more about the NHFIC via the following link

Basic facts of the scheme are 👎

* If you've saved 5% of the purchase price of your property the government will guarantee the remaining 15% of the deposit.

* You still need to borrow 95%, but you can avoid loan mortgage insurance which is the additional cost normally paid by borrowers when their loan exceeds 80% of the property value .

* Your mortgage needs to be an owner-occupied loan with principal-and-interest repayments.

* Eligible first home buyers can't be earning more than $125,000 a year ($200,000 combined for couples).

* Access to the scheme is limited to 10,000 borrowers.

* The value of eligible homes under the scheme varies by state and city/region. As an example in regional NSW the property price cannot exceed $450000 and in regional QLD that capped price is $400000. So this may exclude many borrowers from meeting the eligibility criteria?

* The scheme starts on 1 January 2020.

* Property types are not just limited to new construction or off the plan purchases but includes apartments , villas , townhouses and existing standard residential homes

Regardless of whether you as a first home buyer will or wont be eligible for the guarantee under this new scheme, each borrower's personal circumstances are very unique & still require proper analysis & support . At COMPASS lending & finance we can guide you through this process .

Contact Michael on 6583 2211 to discuss.

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