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 per cent of the purchase price. Currently, borrowers without a 20% deposit are required to purchase 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 on how the scheme will work has yet to be released.
What is Known?
🔥 It will be on a “first-come, first-served” basis.
🔥 Limited to 10,000 first home buyers per year;
🔥 Limited to single earners 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 price thresholds will be dependent on the City and Regional areas.
🔑 Serviceability lending guidelines will apply.
What is yet to Be Decided
🚦 The finer details of legislation and how the guarantee will work;
🚦 When will the government 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 services or products. You should consider obtaining independent advice from a qualified person before making any decisions.
