First home buyer help is on the way

A controversial new scheme has passed in parliament that aims to help First Home Buyers get into the property market. The program will help buyers get into a property with a 5% deposit but it’s estimated that less than 1 in 10 buyers will receive it.

The big savings are that the government will ‘guarantee’ the loan so that the borrower will not have to pay Lenders Mortgage Insurance (LMI).

Other details around the scheme are still a bit unclear but here’s what we know so far:

• The scheme is capped to 10,000 buyers a year.
• It will ‘guarantee’ loans for first time buyers with deposits as small as 5%.
• There is an income cap of $125k for individuals and couples earning more than $200k.
• There is a price cap in cities and regional areas. Click here to see the ranges.
• The scheme will start on January 1st 2020.
• It will only be available through some lenders.

If you’re thinking about this scheme or know someone who is, let me know. I can make sure you’ll have a good chance at being one of the lucky 10,000 who receive this.