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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Any advice on this website is general in nature and does not take into account your personal circumstances, objectives and needs. Therefore, before making a decision, you should consider the appropriateness of the advice with regard to those matters. Please see our Financial Services Guide for more information.

COMPASS financial management (A.B.N. 43 235 905 061) is an authorised representative of Charter Financial Planning Ltd, Australian Financial Services Licensee


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