Good Morning and Happy Monday,
I hope that this finds you all rested after ‘Straya Day’
This week just gone saw most of the lenders involved in the First Home Loan Deposit Scheme (FHLDS) advise they were ready to get moving, with the scheme taking off from Feb1 2020.
This is a link to the scheme http://nhfic.gov.au/what-we-do/fhlds
There are several caveats here on this scheme which could make navigation difficult for a client to do alone. Primarily because there are only 10,000 places available in every financial year. These are then distributed to the lending participants. In reading the material provided by the lenders, a First Home Buyer needs to first register with one of the lenders to gain a place in the scheme.
Borrowers will need to demonstrate 5% genuine savings over at least 3 months. They must also have access to additional funds to cover the miscellaneous charges associated like bank fees, solicitors govt fee’s etc.
It would seem that under the scheme that the lender will use the FHLDS to guarantee the portion of the loan between 5 - 20% similar to a family guarantee with no LMI payable.
Borrowers must be able to comply with the income thresholds, earning less than $125k for individuals and $200k for couples. There are also property price thresholds that vary depending on location see the list here http://nhfic.gov.au/what-we-do/fhlds/property-price-thresholds/
One of the things that seems to set this scheme apart is that a first home buyer can ALSO take advantage of the $10k available in first home buyers grants in NSW and the stamp duty exemptions where applicable. It will make this scheme a very attractive proposition to first home buyers with some significant savings available.
Some of the lenders available under the FHLDS scheme have some very appealing rates. Like a 2 year fixed @ 3.09% with Australian Military Bank, 2.97% for a 3yr fixed with Auswide Bank and 3.03% for a Basic Variable with My State bank. At at Monday January 27 2020
I hope the rest of your week is productive. I am here if you need assistance.
JC
Scenarios and interest rates quoted above are suggestions and constitute general advice only.
Justin
Comentários