- July 2, 2020
- Posted by: David Reid Homes
- Category: Custom Home Builders, Custom Homes, HomeBuilder Scheme, Luxury Home Builders, Luxury Homes, New Home Finance
First home buyers, you could own your own piece of luxury/custom built on 5% deposit
As of July 1st 2020, the Federal Government has opened up 10,000 more spots for first home buyers looking to crack the Australian property market with a minimal deposit. Known as the First Home Buyer Deposit Scheme, the benefit allows first-time buyers to put down just 5 percent deposit for a property with the government acting as guarantor for an additional 15 percent, so that the usual Lenders Mortgage Insurance is not required – Big savings!
As of January 1 this year 10,000 applications – for couples and singles alike – were made available, with a second 10,000 made available July 1 2020, for the 20/21 financial year. It’s a promising initiative for those looking to buy or build, but industry research has found that as many as eight-in-ten first home buyers don’t understand what the scheme is or if they are eligible to take advantage of it.
First Home Loan Deposit Scheme Price Caps:
In order to access one of the 10,000 First Home Loan Deposit Scheme applications, the property you are purchasing/building must fall below a certain threshold.
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There are a few other grants to be taken advantage of. This includes the new HomeBuilder Scheme,which you can read about here, and the First Home Owners grant.