Eligible first home buyers will be able to enter into the market with just a five percent deposit following the passing of the First Home Loan Deposit Scheme through parliament earlier this month.
The scheme is designed to facilitate earlier access to home ownership for first home buyers, by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as five percent. The scheme will support 10,000 first home buyers each financial year and was passed with the National Housing Finance and Investment Corporation’s (NHFIC) new research function.
According to a statement from Treasurer Josh Frydenberg and Minister for Housing Michael Sukkar, the government recognises that saving a deposit has become a more significant barrier to entering the housing market — with 10 years the average time it takes for a first home buyer to save a 20 percent deposit.
Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples.
For more on this story see Page 4 of The Advertiser, Friday, October 25