That’s around 6,000 (as of Feb 26, 2020) mortgages setup using the Government’s First Home Loan Deposit Scheme out of the 10,000 yearly limit.
In addition, All of the 5,000 application approvals that were allocated to the major banks are now gone, leaving smaller lenders to soak up the balance!
In case you haven’t heard already here’s the article we published before Christmas about the First Home Loan Deposit Scheme: https://bzargroup.com.au/2019/12/27/first-home-loan-deposit-scheme/
The crux of the scheme is this:
A borrower requires just five per cent for a deposit instead of usual 20 per cent & will not be required to pay Mortgage Lenders Insurance (as per normal)
Obviously a massive opportunity for first home buyers in 2020.
If you do miss out on this first round of FHLDS, it’s worth mentioning that another 10,000 places will be available from July 1, 2020 as part of the annual, $500million program.
To help you understand the whole situation, there’s some eligibility criteria and some caps on property values you should be aware of:
• The government have placed an income cap on those looking to apply with income thresholds up to $125,000 per annum for singles and up to $200,000 per annum combined, for couples (assessed in the financial year preceding the financial year in which the loan is entered into).
• Regionally specific – see them here: https://www.nhfic.gov.au/what-we-do/fhlds/eligibility/
• Download the FHLDS fact sheet here