New First Home Buyers Deposit Scheme – Get in quick to boost your chances of first home ownership
The Australian Dream may be coming true this Year.
While most of us were happily sleeping off the New Year’s Eve cheer a Happy New Year bonus for the beginning of the 2020 decade began.
Until now first home buyers generally needed to save at least 20 per cent of the purchase price as a deposit to avoid paying mortgage insurance and be considered by the banks and financiers for a home loan.
The Federal Government has introduced the new First Home Buyers Deposit Scheme allowing the first 10,000 of eligible first home buyers in each year to go ahead to buy a first home with only 5 per cent deposit, with the government guaranteeing the balance of required deposit under a special new type of scheme.
First home buyers must urgently apply, have at least 5% deposit plus costs to buy and must jump through the usual hoops applying for a home loan. The applicant will eventually repay their loan over the term in the ordinary course. In Queensland, provided a first home is under $550,000 then no stamp duty is payable so that is a help as well.
We understand Commonwealth Bank of Australia and National Australia Bank have the month of January 2020 then the minor banks and financiers only commence on 1 February 2020, but then the amount available is limited. Therefore, depending on how many buyers apply, the funds may run out before 1 February 2020, so anyone interested should quickly investigate the requirements as this Scheme is not ongoing.
There is a tool to help first home buyers find out the property price threshold for the suburb in which they are looking to purchase a property. Click here to access this tool.
An online, interactive questionnaire is also available to help first home buyers find out whether they meet the Scheme’s eligibility criteria along with a guide to eligible properties, including relevant dates and requirements for different property types. Click here to access the questionnaire.
First home buyers need to apply through the listed banks or lenders and we can help with this process and provide legal advice concerning contracts and the process of buying a home. McLaughlins Lawyers have been giving good advice to first home buyers for over 60 years and many of our clients are now buying their 3rd or 4th home with us and sending their children and grandchildren to us for guidance and help with their legal needs.
As with all important decisions in life it always helps to read the fine print. Before making any significant financial decisions we recommend all buyers seek independent financial and legal advice on how to structure their loan arrangements in the best way to suit their own personal circumstances. McLaughlins Lawyers are fine print experts and independent of the banks and government so can give you the peace of mind to take opportunities that may have been out of your reach till now.
Click here to download the scheme portal to access factsheets and for further information and list of lenders.
In the month of January 2020 & ‘New Year Resolutions’ – save more and the Federal Government might just help you into your first home, the Australian dream may just be a dream come true – call Teresa Kearney our Senior Associate with over 30 years legal experience on 07 5591 5099 or Cassie Ross our property paralegal on 07 5591 7817 for help.
McLaughlins Lawyers, your experienced Gold Coast lawyers, we stand beside you to make those home ownership dreams come true.
Click here to watch our VLOG speaking on this topic.
Author: Teresa Kearney
Director: Ian Kennedy
Date: 8 January 2020