The scheme is due to start on 1 January 2020, the government plans to provide a guarantee to buyers earning less than $125,0000 a year.
One of the requirements is that you have a deposit of between 5 and 20 percent of the purchase price. The current situation is that borrowers without a 20% deposit are required to have mortgage insurance.
The scheme will be limited to 10,000 first home buyers a year. This equates to about 10% of first home buyers in the market.
The outline of the key details is yet to be released on how the scheme will work.
What is Known?
🔥 It will be on a “first in first served” basis;
🔥 Limited to 10,000 first home buyers per year;
🔥 Limited to single earning $125,000 and couples earning less than $200,000 per annum;
🔑 It is due to start on 1 January 2020;
🔑 You must have a minimum deposit of 5% of the purchase price;
🔑 The prices thresholds will be dependent on City and Regional areas;
🔑 Serviceability lending guidelines will apply.
What Is Yet is to Be Decided
🚦 The finer details of legislation and how the guarantee will work;
🚦 When the government will be accepting applications;
🚦 The application processes.
As more information becomes available, we will provide Updates.
Important information The contents of this article do not constitute legal, financial or commercial advice or a recommendation of any servicesor products. You should consider obtaining independent advice from a qualified person before making any decisions.